One would think we are back to healthy, but this is a revenue-based chart, not an NOI chart. And we all know what happens when we layer expenses on this graph.

Always enjoy your posts, Trey .

I’m gobsmacked! I just saw the future of leasing, and it’s their bots talking to ours.

I decided to shop several properties onsite, but instead of going to their ads or websites, I simply asked Meta’s Muse to set everything up for me.

My happy AI assistant opened its own browser, scheduled my first appointment, then lined up comparable properties with pricing, reviews, amenities, and move-in vs. monthly costs.

Email confirmations started...I’m gobsmacked! I just saw the future of leasing, and it’s their bots talking to ours.

I decided to shop several properties onsite, but instead of going to their ads or websites, I simply asked Meta’s Muse to set everything up for me.

My happy AI assistant opened its own browser, scheduled my first appointment, then lined up comparable properties with pricing, reviews, amenities, and move-in vs. monthly costs.

Email confirmations started hitting my inbox from each property. At my first tour, I told the leasing associate how I’d used Muse.

She said, “Well, how will I still have a job?” I responded, “Give me one more of your comps and we’ll see…” I dropped her suggestion into Muse. 30 seconds later, a guest card was submitted. 60 seconds after that, their competitor was calling me.

“See? That’s how you still have a job,” I said. “You beat the bots at their own game. Calling right when the lead drops: nothing can beat that.”

But that’s not the biggest takeaway. I never once visited a property website. Muse did all the browsing for me.

Yes, we still need websites to talk to the bots. But if prospects aren’t visiting them, will they need them, or care what they look like? Show more

Looking for renter's insurance company that integrates with Appfolio.  

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Renters in every single one of the 50 largest U.S. metros are paying less than buyers this month. Zillow just put a number on it: $12,792 a year.

The gap isn't just wide. It's widening fast. Buyer costs rose $140 over the last six months. Rent rose $32. That's a structural shift, not a snapshot.
For anyone financing SFR, build-to-rent, or multifamily, that's a real demand signal.

But the number leaves out half the ledger. A mortgage payment...Renters in every single one of the 50 largest U.S. metros are paying less than buyers this month. Zillow just put a number on it: $12,792 a year.

The gap isn't just wide. It's widening fast. Buyer costs rose $140 over the last six months. Rent rose $32. That's a structural shift, not a snapshot.
For anyone financing SFR, build-to-rent, or multifamily, that's a real demand signal.

But the number leaves out half the ledger. A mortgage payment includes principal paydown. That's equity, not an expense. Appreciation adds more.

None of that shows up in a report that only measures monthly outflow.
Worth noting the source too. Zillow runs one of the largest rental platforms in the country. A rental marketplace concluding renting is the smart move deserves the same scrutiny you'd give any source with a stake in the answer.

The underwriting lesson doesn't change though. The demand tailwind is real, and it varies enormously by market: $536 a month in Pittsburgh, nearly $8,000 in San Jose.

A borrower citing "renting is cheaper everywhere" as proof of demand in their deal should still get the harder question: is the gap in this specific market wide enough, and durable enough, to support the rent growth you're underwriting?

National data tells you renting is winning the math almost everywhere. It doesn't tell you whether your asset is capturing that demand.

Learn more about underwriting fundamentals like this at the Academy for Commercial Lending, and get analysis like this every week from The Small Balance Intersection.

lnkd.in/eQuACEWR Show more

My 11 year old baseball playing son has retired some of the animal core design in our home. RIP pig wearing a gold crown and golden balloon pup. You served us well. 🤣🤣🤣🤣🤣

I’m based in Houston but they don’t have to local.

Thanks for your help.

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A tenant told the property manager they didn’t want to pay for the bulk internet service because they already had another provider.

The property had both a bulk agreement and an access-only agreement with a different ISP.

That sounds like it should solve the problem. It doesn’t necessarily.

The bulk agreement may require the owner to provide the bulk service to all units, while the access-only agreement allows another provider to enter the...A tenant told the property manager they didn’t want to pay for the bulk internet service because they already had another provider.

The property had both a bulk agreement and an access-only agreement with a different ISP.

That sounds like it should solve the problem. It doesn’t necessarily.

The bulk agreement may require the owner to provide the bulk service to all units, while the access-only agreement allows another provider to enter the property and serve residents who choose that provider.

The problem is what happens when a resident says, “I don’t want the bulk service.”

That answer depends entirely on how the agreements are structured.

Is the bulk charge mandatory under the lease or community documents? Can the resident opt out? Can the resident use the access-only provider instead? Does the owner still have to pay the bulk provider for that unit? Can the access-only provider market directly to that resident? Who is responsible for installation and wiring?

These aren’t just telecom questions. They can become leasing, operational, and resident-relations issues.

I’ve seen owners focus heavily on getting both agreements signed without addressing how the two agreements work together when a resident doesn’t want the bulk service.

That’s the part that needs to be negotiated before the resident ever asks the question. Show more

Do we still need mystery shops?
After 20+ years in multifamily, I’ve been on almost every side of the shopping process. I’ve requested shops, reviewed recordings, disputed inaccurate results, and watched scores make their way from the shopping company to regionals, managers and leasing professionals.
I’ve also watched what happened next.
Sometimes the shop became a great coaching opportunity. Sometimes it became a score and a signature...Do we still need mystery shops?
After 20+ years in multifamily, I’ve been on almost every side of the shopping process. I’ve requested shops, reviewed recordings, disputed inaccurate results, and watched scores make their way from the shopping company to regionals, managers and leasing professionals.
I’ve also watched what happened next.
Sometimes the shop became a great coaching opportunity. Sometimes it became a score and a signature. Sometimes it was used for disciplinary action. And sometimes nothing happened at all.
Now, sitting on the other side with Elevate Mystery Shopping, I keep asking:
What does multifamily actually need from mystery shopping today?
Are traditional shops still valuable? Are they becoming an expense that’s harder to justify? Are we measuring the right things?
Most importantly, once we identify a performance gap, what happens next?
That question has shaped Elevate. I don’t believe a shop should end with a score. Leadership should see the business impact, managers should know what to coach, and leasing professionals should know how to improve.
I recently talked about my multifamily journey and launching Elevate on the Beyond the Portfolio podcast, which dropped yesterday. I’ll share the link below.
But I really want to hear from you:
Are shops still a must have, a nice to have, or does the model need to evolve?
I’m listening. Show more