Smart Expense Management: The Multifamily Untapped Goldmine

Multifamily types often overlook the most crucial aspect of value creation: operational efficiency. We can’t do it through rent growth alone—every penny saved directly boosts your bottom line. The fastest way to increase NOI is smart expense management.

Renegotiate every contract—ongoing. Never leave this to chance; it will get overlooked! Make sure someone on your team OWNS this responsibility. And make it a standing bullet point in your Monday Morning Meeting (3M).

Unchecked service providers equals fee creep.

Maximize energy efficiency; utility bills are eating away at profits.

And here’s the hard truth: down unit vacancy is the silent killer.

Someone must OWN down units.

Mandate: No cannables. Don’t cherry-pick the down units for parts, pieces, and whole appliance changeouts. Once more, for good measure – DON’T Cannabalize Down Units.

But rent growth still matters. Every unit is unique. Price as such!

Finally, the real secret weapon is resident retention. Stop bleeding money on turnovers. Create a personalized resident experience in which they are emotionally invested. Near-instant responses to maintenance, flexible lease terms, and minor upgrades go a long way. So does using a resident’s name, asking about their pet(s), family, work, life, etc. So does dropping a random act of kindness on them.

If you’re not laser-focused on expense management, you’re leaving money on the table. It’s time to challenge the status quo and make every dollar count.