Property Managers Can Prosper in Boom and Bust Industry Cycles
This year will be another strong one for the multifamily housing industry, with property manager positions ballooning along with inventory.
However, property managers are positioned to do well in down cycles too, according to property management veteran Chris Mellen in an article in National Real Estate Investor. Thats because they have a lot of control over maximizing income and minimizing expenses.
Savvy property managers can cut expenses in lean times by focusing on energy efficiency, buying in bulk, rebidding contracts, cutting down on vacancies during tenant turnovers, and replacing inefficient systems and hard-to-maintain building and unit components to decrease maintenance costs.
On the income side of the ledger, rent increases are a sure-fire path to increased income, but may not be the best option during an economic downturn. Nonetheless, property managers should focus on the credit worthiness of potential tenants to ensure the income stream remains as steady as possible.