Tenants

Source: CoStar Group If you are a multifamily property operator in the Dallas/Fort Worth Area, you know the vacancy challenges we are experiencing in the current market. All news sources report high vacancy rates in Dallas/Fort Worth. In fact, vacancy rates have increased to 10.5%, significantly above the 10-year average of 7.9% per Costar. The increase in vacancies is due to the high supply of new apartments entering the market, outpacing the rate at which these units are absorbed. Another factor is inflation, which can cause financial stress for renters and force them to opt for more affordable housing options. Given these challenges, I offer a few initiatives for multifamily operators to protect their property from high vacancy rates. First, study the competition. Identify the properties that compete with your property for renters. With a quick Google search, you can identify properties competing for the same tenants as your property. Study their concessions, rent rates, pet fees, application fees, admin fees, and processing fees and make the necessary adjustments. Do this at least every month to remain competitive. Secondly, walk around your property and make sure the property has curb appeal. The property needs to be clean and look professionally managed. Ensure dumpsters are clean, leaves are getting blown, and not stacking up on sidewalks, curb stops, communal areas, and breezeways. Remove debris and convey a sense of freshness to your property. Quality renters pay attention to the details; know that a quality renter might pass up your property due to cleanliness, even if your property has the best rent rates in the market. Thirdly, tour your vacant units and make sure they show well. Dirty units with foul odors turn off quality renters. Ensure prospects tour units that are made ready and have a pleasant smell. Cleanliness and functionality spark the prospects’ sense of comfort, and they will desire to move into properties that make them feel right at home. Finally, discuss the past 90-day activity with your manager. Ask your manager about the number of leads your property generates, the source of the leads, and the outcome of each lead. Know the following: How many leads were generated each month? What was the source of each lead? Did the lead tour the property, and what unit did they tour? Did the lead apply? Was the lead qualified to lease a unit at your property? If qualified, did they rent a unit or move on to another property? If they did not sign a lease, try to find out why. Attempt to contact these leads and get the inside information on why they chose your property or did not. This proactive step will give you insight into how to market your property effectively. Sometimes, a quick phone call from a property manager or leasing agent to the prospective tenant will disclose why they rented your unit instead of your competitors. Use this valuable feedback to adjust your processes and adapt to the changing market. The feedback can help you adjust how you present your property to new prospects, how you train your staff, and how you operate your processes for better results. Leasing apartments in the Dallas Fort Worth Market is competitive. Apartment operators that make the necessary adjustments to adapt to the ever-changing market will win the best tenants and achieve their valuation and cash flow goals. Operators that do not adapt will see higher vacancies and lower-quality tenants, leading to high vacancy rates, loss of cash flow, and property value.