There is a lot in the news lately about how great the market is for the acquisition and disposition of multifamily assets. You see the big players out there “wheeling and dealing” getting in on the action and proudly announcing their companies being assigned new properties in receivership. But no one ever talks about what happens to the onsite team caught in the middle. No one ever discusses how they weather the storm, the upheaval of not knowing what is going to happen next, and how to transition through the changes.

“A Negative Thinker Sees a Difficulty In Every Opportunity.” Well, I can well imagine how the onsite team might fall into this trap. After all, sometimes completely out of the blue you are told, usually in an impersonal telephone call, that your property is for sale. Maybe you did have a faint inkling it was coming, maybe you didn’t. Either way, most people will internalize this news and rationalize a plan of action.

The onsite team may well first think, “What will happen to us?” followed quickly by “What will happen to me?”

Change is difficult. Everyone understands this, but the questions a sale raises can blind any employee into not being able to see the forest for the trees. With today’s economic climate, employees may well worry about their financial well-being. They begin to worry whether or not their paychecks will be good, whether their current company will honor their accrued sick and vacation pay, whether they should cash out their 401-Ks and whether or not they will still have a job after their property is sold. It is up to the current management structure in place to answer these questions and to offer at least some reassurance that the day-to-day operations will continue as usual. It is up to the team in place to reassure those key individuals that it is Business as Usual. Otherwise, even with the offer of a Retention Bonus, key players will jump ship quickly.

“A Positive Thinker Sees An Opportunity In Every Difficulty.” Who knows? Maybe the new Owner or Management Company will offer a better benefits package. Perhaps there will be more opportunity for advancement. Maybe there will be a more open attitude toward property improvements. Perhaps there will be more training, more access to higher ups and mentoring possibilities. There can be a silver lining to this situation.

For the onsite team, there can be true feelings of loss and a mourning process may need to be experienced, especially for those who have been with a particular property for many years. Grieving comes in many forms, from sadness to anger. I really caution those who are looking to buy the property to be cognizant that the onsite team is worried, is afraid of the unknown, and they, while polite may be bitter even at your presence. I can tell you from personal experience that you may be told untruths by current owners and this may also contribute to the bitterness by the onsite team who are not at liberty to share their knowledge of the property with you until after a sale is completed.

The good news is that the onsite team generally will bond over this experience! They will march into the takeover battle together – and this should be the goal. Once someone leaves his position, due to broken promises or fear or the idea of change stirs a longing and re-evaluation of personal goals, the team may flounder a bit.  It would be in the best interest of the property to encourage the team to ask questions openly of the Current Owner so their fears can be softened. Not all questions have an answer! But for Owners to tell the Manager of the impending sale and ask that the Manager not share the news is asking someone to maintain a lie, in my opinion. Trust – it is the cornerstone of all relationships. The Team leader cannot be expected to shoulder this burden with the promise that he or she will be “taken care of later, after the sale.” Play fair.

Teams who emerge from an acquisition and/or disposition share a strong bond and likely will be better able to give their allegiance to the new company willingly and joyfully. Before the sale is complete, life on a property goes on. Yep, there goes the phone right now. Time to lease another apartment!