Podcast - Episode 2

Episode 2

The One about Occupancy in Multifamily

In this video, Lyle Lansdell, President and CEO of PM Residential Management, dives into the critical topic of occupancy in the multifamily sector. With current market conditions, understanding the importance of maintaining high occupancy rates is more crucial than ever.

Lyle explains why focusing on occupancy is vital, especially in a slow or down market. He breaks down the significant costs associated with resident turnover, averaging $3,600 per unit, and the challenges of recovering these costs with new leases.

Highlighting the impact on Net Operating Income, Lyle illustrates how maintaining a high occupancy rate can preserve property value and reduce hidden costs associated with turnover. He also introduces innovative solutions like Artificial Intelligence (AI) software to optimize lease renewals and reduce turnover rates, ultimately smoothing out the lease expiration curve.

Lyle discusses the rising impact of delinquencies due to increasing interest rates and the importance of reviewing income qualification guidelines for new leases. He emphasizes the role of qualified traffic, closing ratios, and the power of social media in generating leads and enhancing the leasing process.

Finally, Lyle summarizes key strategies for managing occupancy, including moderate renewal strategies and the use of AI software for revenue optimization. By implementing these approaches, property managers can significantly improve their bottom line and be better prepared for future market changes.

Join us as we explore these insights and strategies for maintaining high occupancy rates in the multifamily sector.