Balancing Profits With Resident Comfort in Multifamily

Demitro: “Millennials in particular tend to expect more in terms of services.”

SAN DIEGO—The rising competition to recruit and retain sophisticated and service-focused staffing and the demands of the amenities race are some of the challenges the apartment sector faces today, Sunrise Management ‘s senior regional real estate manager Daniel Demitro and regional real estate manager Peyton Hoban tell GlobeSt.com. The two new professionals were recently hired to Sunrise’s San Diego team, and both have strong backgrounds in managing residential portfolios. Previously senior regional manager for Alliance Residential , Demitro oversaw 13 properties in the San Diego, Los Angeles and Inland Empire markets. He also served as an area manager and later regional manager with Irvine, CA-based Carmel Partners after 12 years with the Irvine Co. Apartment Communities . Hoban most recently was in charge of the operational and financial performance of portfolio of San Diego properties as property manager with San Diego-based Capital Growth Properties Inc. We spoke with both of them about the evolving multifamily industry in San Diego and beyond. GlobeSt.com: What are the key issues facing multifamily property management today? Demitro: A few of the key issues are created as we balance growing profitable assets for owners while creating a comfortable home for our residents. These include: the rising competition to recruit and retain sophisticated and service-focused staffing and the rising cost of keeping up with the ever-evolving “amenities race” as residents increasingly expect resort-style perks. Millennials in particular tend to expect more in terms of services. Hoban: The multifamily industry has reached a crossroads: we are diverging from old techniques to adapt new technologies that enhance efficiency and customer service. With this in mind, it is critical to stay on top of generational needs and wants— Boomers expect different amenities than Millennials. It’s also important to devote adequate time and resources needed to monitor and respond appropriately to social media—both positive and negative—and strategically use this feedback to improve our residents’ experiences.

Hoban: “We are an especially outdoor-oriented area, so services should be carefully designed with this in mind, and may include rooftop decks, fully equipped outdoor areas and bike-friendly amenities such as bike-storage areas.”

GlobeSt.com: What issues are unique to property managers in the San Diego multifamily market? Demitro: I have managed multifamily in San Diego, Orange County, the Inland Empire and the San Gabriel Valley of Los Angeles. The most unique thing I have found here is the number of colleges and universities—among them UCSD , USD and SDSU —and the important impact they have on housing in all areas of San Diego. This can be both a blessing and a curse for owner and managers. When managed correctly, housing students can be a fun and profitable business, but if an owner or manager lacks knowledge of academic timing and the expectations of a student clientele, it can be a disaster. Hoban: San Diego attracts people from all over the country, so property managers must work to meet a diverse range of demands and needs here. We are an especially outdoor-oriented area, so services should be carefully designed with this in mind, and may include rooftop decks, fully equipped outdoor areas and bike-friendly amenities such as bike-storage areas. We are also an environmentally conscious city, so sustainability matters here—from property recycling programs to energy-efficient lighting and appliances. GlobeSt.com; What new areas of opportunity are there for property managers today? Demitro: There are several obvious areas of opportunity as the industry continues to evolve into a more-sophisticated profession. Technology , more-robust financial reporting and a highly proactive approach to customer service are just a few. Near the top of this list is the chance for onsite and regional managers to take a real ownership and be part of the brand identity of their buildings. I also see a real opportunity for smaller and midsize building managers to focus resources on an individualized marketing and social- media identity and nurture that from the site level. This is something that has traditionally been reserved for large assets, but with today’s media-savvy market, the entire industry can benefit from this type of strategic marketing. Hoban: One emerging opportunity for property managers today is to oversee the  redevelopment and rebranding of older assets via strategic marketing, new signage, collateral materials and, of course, extensive renovations. Many properties—especially those built in the ’60s and ’70s—require significant upgrades and repositioning to attract residents. We are also seeing opportunities to repurpose older, outdated amenities such as tennis courts, old clubhouses and putting greens and converting them into “in demand” perks such as dog parks, coffee lounges and communal fire-pit/bbq areas. GlobeSt.com: What else should our readers know about your new roles with Sunrise? Demitro: I am very fortunate to join this outstanding organization. As the company continues to grow and take on more projects, it was the right time to add an additional resource for our large-property clients and regional team. I look forward to being part of a new and exciting chapter with the company. Hoban:   I am very excited be a new Sunrise Management team member and will focus on helping with the company’s continued growth, especially in the San Diego region. In addition, I will be focusing on streamlining processes and increasing efficiency, with a goal of transitioning operations at all of our properties to be 100% paperless by 2017. Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What’s driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.