Efficient operations help ensure a multifamily property runs smoothly. There’s no doubt about that.
Just as important is that property’s culture. Culture improvement can reduce tenant and staff turnover, maintain and increase occupancy and improve NOI.
Unfortunately, some owner/operators can ignore smaller issues when implementing culture improvement strategies. ApartmentBuildings.com recently asked industry experts about what tends to be overlooked when implementing property-level cultural improvements.
#1 – That One Team Member
Few things erode culture faster than when leadership tolerates even one underperforming team member. The staffer who doesn’t pull their weight can stoke resentment and outright hostility.
“One disengaged leasing agent or unresponsive maintenance technician can quietly poison team morale and resident perception long before it shows up in your financials,” said Curtis Holder, director, head of asset management with Excelsa Properties.
#2 – Team Stress
Lela Cirjakovic explained that property management staff are often caught between a rock and a hard place, balancing ownership’s financial demands and residents’ needs. Such pressure can lead to burnout, even fear.
“Fear of making a mistake, not following a policy, legal threats, resident demand, ongoing corporate and ownership questions or missing a single metric forces them into survival mode,” said Cirjakovic, JLL’s Managing Director, Multifamily Property Management. “This means property-level culture is sacrificed and abandoned for just getting through the day.”
#3 – Inconsistent Execution
Stream Realty Partners Managing Director Pat Swanson explained that owner/operators focus on staffing, strategy and renovations to improve culture. What gets ignored is how those actions and others are executed.
“Things need to be done the same way, every day,” he said. “A simple plan executed consistently will always outperform a great plan that’s executed inconsistently.”
#4 – Separating Culture from Performance
Sometimes cultural and performance actions are placed into separate buckets rather than merged. According to Patti Higgins, senior vice president at Parktown Living, culture shouldn’t be separate from performance; it drives it.
“You can have the best pricing strategy or asset plan, but if the on-site team doesn’t take pride in their work and has no accountability for execution, the results won’t follow,” she added.
#5 – Payroll Misconceptions
Cirjakovic explained that one challenge for owner/operators is securing the right budget to hire best-in-class talent to help build a great culture. However, that cost is viewed as a line-item expense.
“This should be viewed as an expense, but as an investment,” she added.
#6 – Middle Management Complacency
Some middle managers can focus on box-checking, rather than coaching people to perform at their best. This can lead to confusion and resentment among staff members who might feel like machine cogs rather than people. A disenchanted staff can lead to dissatisfied residents.
“The first move in any turnaround should be an honest assessment with the site leader,” Holder suggested. “Culture flows from the top of the on-site organizational chart.”
#7 – Culture without Community
Even if all of the above issues are addressed (e.g., implementing consistency, preventing burnout and merging culture and performance), the community factor can be overlooked.
Higgins said that owners/operators might underestimate how much a sense of community is worth to a resident. “Residents will pay more just to be around neighbors they like and a team that takes care of them,” she added.
An earlier version of this article is on ApartmentBuildings.com.
