July 2024 Newsletter
Market Minute
According to a recent CoStar article, “Apartment rents in Salt Lake City increased by 0.6% month over month, the market’s fourth consecutive month of positive monthly rent growth. The last time the Utah Capital registered four months of monthly rent gains was in 2022.”
Additionally, “In recent months, renters have demonstrated a preference for multiple bedrooms. Rents in three-bedroom units increased by 1.3% quarter over quarter, while two-bedroom rates rose by 0.9%. One-bedroom rents grew by less than 0.1%, and studio rents were virtually flat.”
Over the last several quarters, Salt Lake City has led the state in units delivered which resulted in compressed rents and inflated concessions. The positive rent growth in arguably the most competitive market in the state inspires optimism for the near future not just in Salt Lake but also in adjacent cities.
‘Nxt Level’
It is no surprise that we have entered a new digital age where the average consumer, or prospective tenant in our industry, uses new tools when making decisions such as where to move to. These tools include social media, property websites, and online review platforms—with Google being the most popular.
A recent survey of 8,153 U.S. consumers found that nine in 10 consumers say they consider reviews when making a purchase decision. In today’s highly competitive multifamily market, the smallest factors such as average star review or a particularly good or bad review can make the difference between a new move-in and a lost lead.
This month, we would like to highlight how our on-site teams have embodied our mission statement to serve others like family by sharing some reviews we have gotten recently:
George (5 stars): “Went in for a tour and Briana was absolutely amazing and so helpful! I can’t wait to live here and be around such amazing people!”
Logan (5 stars): “If you want the kindest office staff, amazing location, and great townhomes this is the place to look. We were supposed to move out a couple of months ago and have decided to renew because our experience has been so good. We have felt at home here, it is so much better than any other apartment complex I have seen.”
Cherryrose (5 stars): “The property manager, Angie, is a phenomenal manager that will go above and beyond for her tenants. I think that’s what stands this property apart from the others. While others will just turn their heads and won’t bother to help. Angie really takes time to get to know her tenants and help them. Thank you Angie! I am so grateful for you.”
Ask the Editor
Question: Why should someone hire a management company instead of self-manage?
Answer: This is a great question! In our experience, there are often many things that go overlooked when an ownership group decides to try and self-manage a multifamily asset. As a professional management company, management is all we do! This allows us to help the asset perform to the maximum compared to an investing group that may try to vertically integrate to manage it.
Often, groups decide to take management “in-house” in an attempt to save money. What many have found is that the amount saved on the management fee pales in comparison to the efficiencies found when using 3rd party property management, as outlined below:
Marketing: we have a dedicated marketing team that are experts in social media and pay per click ads in an increasingly digital world.
Operational Efficiencies: our extensive portfolio allows us to leverage relationships to get discounted rates on services like landscaping, bulk internet and more. We also have the benefit to share staff between properties which lowers the payroll burden. This is especially important on smaller properties.
Other Income: we have noticed that in-house management companies leave a lot on the table as it pertains to other income items like pet rent, paid parking, amenity package income and more. These are usually not enforced as they should or they are not priced at market rate.
Staff: our sites have dedicated staff which boosts resident satisfaction and ensures the asset is taken care of.
Rent and Retention: our on-site staff are trained to excel in their individual markets to maximize lease and retention rates. They also perform a bi-weekly market analysis to ensure rents are priced at market to capture the highest income possible.
Accounting: our dedicated and experienced accounting team helps ensure everything is recorded and allocated accurately. Accounting is a common deficiency we have seen with groups who self-manage.
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Until next time,
