Enter your email address for weekly access to top multifamily blogs!

Multifamily Blogs

This is some blog description about this site

Top 3 Things to Budget for in 2022

Top 3 Things to Budget for in 2022

Fall is fast approaching and you know what that means. Budget season! As you carefully calculate your property management budget for 2022, it’s a perfect time to consider ways to improve your property and resident experience.

 

To help you be strategic with your finances, we’ve compiled a list of the top three things to budget for in your 2022 plan: 


1. Amenities
2. Resident Retention
3. Property Technology

 

Amenities

Due to the COVID-19 pandemic, your residents are spending more time at home than ever before. As a result, residents are prioritizing different amenities for 2022. This is a unique opportunity for your property to stand out by including more of what today’s renter is looking for. 


Desirable community amenities include:

• Coworking space: Accommodate the growing work-from-home trend and foster community at your property by adding a coworking space. 
• Onsite storage: Over 31% of Americans say they wish they had more storage space. Capitalize on this by turning any underutilized space into storage for rent.
• Outdoor amenities: Appeal to renters with upgraded outdoor amenities like rooftop patios, dog parks, and community gardens.
• Guest parking: Improve the day-to-day lives of your residents by renovating or expanding your parking to accommodate visitors. 

 

You can also increase your property value with in-unit amenities such as:

• Onsite laundry: In-unit washers and dryers are a top priority to renters. Although it requires an upfront investment, your rent revenue can increase up to 20 percent!
• Heating and cooling: Improvements to your units such as central air conditioning and upgraded heating go a long way to impress prospective renters. 
• Pet-friendly policy: Allowing pets in your units opens you up to a whole new world of potential tenants. Get a competitive edge by combining this with other amenities. 
• Built-in workspace: Overwhelmed by the idea of building a coworking space? Consider adding in-unit desks or office spaces to appeal to remote workers. 

While some of the above amenities might not generate ancillary income, they will set your property apart from the competition. Making residents happy improves revenue overall by increasing your retention rate and enticing new residents. 

 

Resident Retention

You know it costs more to replace a resident than to retain one. So why not put more effort into resident renewals? Boosting your building’s retention rates also increases your NOI. 


The truth is that renters today expect different things from their apartments than they did even just a few years ago. Investing in upgrades that your residents actually want will encourage them to love where they live and stick around. 

Options your apartment residents will appreciate include:

• Efficiency upgrades: With concerns about climate change, renters seek eco-friendly apartments. Upgrades like solar panels and energy-efficient appliances appeal to tenants. 
• On-demand services: With platforms like Hello Alfred and Handy, your residents can easily order services and deliveries. On-demand services help your residents reduce stress and save time. 
• Renewal incentives: Encourage a resident to renew their lease with discounts on rent, gift cards, or complimentary unit upgrades. Let your tenants know about their options when you send out renewal notices. 

When considering renewal incentives, it’s important to start by calculating how many leases are set to expire in 2022 and how much the incentive will cost per unit. Some improvements are more expensive than others so review your budget to see what investments are right for your property. 

 

Property Technology

It’s obvious that making improvements to your property is a great way to increase revenue for 2022. But did you know that one of the best improvements you can make is property technology?


By incorporating technology into your 2022 budget will improve your resident experience by improving security and convenience throughout the building. 


Here are some proptech upgrades to consider for your 2022 multifamily budget: 

• Smartphone-based video intercom system: A smartphone-based video entry system empowers residents to grant remote access and elevates their living experience at your building. Be sure to look for a solution with a highly-rated mobile app and integrations to your property management system for additional time savings. 
• Smart locks: Installing smart locks on unit and amenity doors allows residents to unlock them with just a PIN code or smartphone. Additionally, this eliminates the need for handing out and managing traditional keys. It’s convenient and saves you money spent changing locks. 
• Security cameras: Today’s renters value security more than ever before. So, upgrades to your existing security system will make them feel more comfortable and encourage them to stay longer.  
• Smart thermostats: Simplify the lives of your residents with easy temperature control. With a smart thermostat, they can remotely adjust AC and heating from their smartphone — it’s good for their wallets and the environment!

 

Improve your property by budgeting for the best

As you crunch the numbers, don’t let budget season feel overwhelming. Remember, this is a great opportunity to improve your property by investing in upgrades your residents actually want. This list serves as a good starting point for high-value additions.


You know your residents best, so consider which investments they would appreciate most. Also, improvements that will improve the experience of your staff can be a great investment as well. For example, a modern building entry system not only improves your resident experience but can also save time for staff who no longer need to waste hours each week adding and removing residents for the system as they move in and out of your property.. 


Above all else, create a multifamily budget that improves retention, increases property value, and maximizes NOI by choosing the best places to invest in 2022. 

Rate this blog entry:
7
 
This comment was minimized by the moderator on the site

Please add #4...Training. Our team members are managing, in most cases, multi million dollar assets, yet some owners/management companies don't offer ongoing education. There are ongoing changes to laws, best practices and policies. Sounds...

Please add #4...Training. Our team members are managing, in most cases, multi million dollar assets, yet some owners/management companies don't offer ongoing education. There are ongoing changes to laws, best practices and policies. Sounds good however the team has to be trained, motivated and informed!

Read More
  Anne Sadovsky
This comment was minimized by the moderator on the site

Great point, Anne! Thank you for adding to the list. I completely agree that training is essential for managing your property like a well-oiled machine. Especially with the recent COVID-19 pandemic, there have been so many ongoing changes to keep...

Great point, Anne! Thank you for adding to the list. I completely agree that training is essential for managing your property like a well-oiled machine. Especially with the recent COVID-19 pandemic, there have been so many ongoing changes to keep up with.

Read More
  Madison Van Doren
This comment was minimized by the moderator on the site

Great point, Anne! We are finishing up our marketing research report, and I was just considering the budget for marketing relative to the budget for training, and it was... striking.

  Brent Williams
This comment was minimized by the moderator on the site

Very insightful, Madison! I currently reside in a community that has a great coworking area - it's nice to switch up the scenery since I work from home!

Property technology is booming! There are a variety of tech-enabled solutions corporate and...

Very insightful, Madison! I currently reside in a community that has a great coworking area - it's nice to switch up the scenery since I work from home!

Property technology is booming! There are a variety of tech-enabled solutions corporate and on-site teams should consider this budget season. And, you covered some great options! We've been suggesting on-site teams advocate for their favorite proptech tools to corporate teams. Mainly because on-site teams see firsthand how these tools streamline processes, accommodate current and prospective residents, and ultimately, making teams' day-to-day operations easier. Since they utilize these tools and see the results, what better way to get their favorite tools top of mind? Let's push this message forward together! Let's push this message forward together!

Excited to see more of your work!

Read More
  Ashley McGovern
This comment was minimized by the moderator on the site

Thank you for your input, Ashley! Property tech certainly is booming. And with the rise of work-from-home, there's so much opportunity for new technology to address those needs as well. I can't wait to see what a high-tech coworking space will...

Thank you for your input, Ashley! Property tech certainly is booming. And with the rise of work-from-home, there's so much opportunity for new technology to address those needs as well. I can't wait to see what a high-tech coworking space will look like in years to come. Like you said, it's all about making day-to-day operations easier!

Read More
  Madison Van Doren

Comment Below

  1. Posting comment as a guest. Sign up or login to your account.
Attachments (0 / 3)
Share Your Location
Student Housing presents some interesting dynamics and challenges for Property Managers and Leasing Consultant Teams. Some of my most recent observations include: Helicopter Parents who initiate the leasing process for their college-age “child” because their “child” is simply too busy to find a place to live off-campus.  Many colleges and universities require Seniors to live off campus. Students are told this from the beginning, but somehow, it amazes me every year when some distraught...
The biggest misconception of Student Housing is that the students who rent in our communities understand what they are doing because they don’t. Students often look at living off campus as an extension of dorm life and many do not really appreciate the difference until there is a problem. Even parents, in many cases, labor under this delusion. Let’s get one thing straight. Just because your student is living off campus, does not necessarily mean he is living independently. Since most Studen...
Property management professionals have to maintain successful relationships with a variety of people: fiduciary relationships with owners, tenant relations, and vendor relations. Relationships with vendors are arguably as important as having a good relationship with one’s owners because we rely on vendors so heavily during the course of our business. Instead of writing a ‘self-help’ article geared for the property management professional (which there are plenty), I decided to focus on that vendo...