Bob Pinnegar on the 3 Key Takeaways From Apartmentalize

Last month marked the National Apartment Association’s annual Apartmentalize conference and exposition, uniting a record 12,300 industry stakeholders and leaders from across the country to share insights and network with peers. Among the dozens of sessions, panels and discussions, a number of important topics were covered—from the future of the industry and how it’s adapting, to the increased focus on employees and changing priorities of companies’ long-term strategies.

The most significant takeaways seemed to lead back to a few key themes: challenges facing the industry, the continued focus on staffing and the increasing importance of prioritizing employee well-being in the workplace.

Let’s recap some of the key themes from this year’s event and the actionable insights industry professionals took away from Apartmentalize.

Navigating Industry Headwinds

While many of the industry’s most prominent challenges have remained similar over the past few years—triggered by the COVID-19 pandemic and followed by a volatile economic climate—skyrocketing costs for property owners and operators dominated many conversations at Apartmentalize.

Attendees overwhelmingly noted the impacts of rising insurance premiums, higher taxes and increasing utility costs, specifically for electricity, heat, gas, sewer and water. In a recent survey conducted by ndp | analytics and sponsored by the National Apartment Association and other housing organizations, 60% of respondents reported insurance increases greater than 15%, with one in ten respondents noting that their premiums doubled.

Rental housing providers already operate on narrow profit margins: ninety-one cents of every rent dollar goes back into the community through property taxes or toward essential maintenance that keeps the apartment community running. Rising operational costs – especially at the levels seen over the past few months – can have particularly damaging effects on the industry.

Undoubtedly, the impact of increasing expenses has only been compounded by other economic challenges over the past few years: inflation, supply chain delays and rising labor costs. Remaining optimistic, though, few are expecting net operating income to decrease or even go negative this year despite the economic headwinds.

Paralleling many of these economic challenges, political headwinds continue to impact and threaten the long-term viability of rental housing. This year’s Apartmentalize made it clear that industry professionals are continuing to keep an eye on conversations around adverse policy, namely efforts to implement rent control at the state and local levels.

An echoing sentiment of apartment professionals remains around the importance of continuing to advocate for policies that sustainably improve housing affordability and protect the nation’s rental housing infrastructure for generations to come. Attendees this year heard about innovative ways to work with lawmakers to reduce barriers to apartment construction, such as zoning restrictions and permitting requirements.

Despite the challenges facing the industry, a sense of optimism and resolve was evident as conferencegoers networked and collaborated on innovative solutions to foster a stronger industry for the future.

Keeping an Eye on Recruitment & Retention

The ongoing impacts of staffing shortages – and unique approaches to recruit and retain top talent – was another consistent theme of this year’s Apartmentalize. Conference sessions tackled topics ranging from on-site work flexibility and onboarding for retention to fostering cultures of well-being and improving employee perks.

From these sessions, a few common themes underscored some important takeaways.

In today’s competitive job market, companies should do everything they can to attract and retain top talent. It’s no longer enough to simply get talented professionals through the door and trust they will stay; companies must put in the strategic effort to make them want to stay.

In the rental housing industry more specifically, the applicant pool is changing, so leaders must adapt accordingly or risk getting left behind.

Possibly the most important factor in building recruitment and retention is creating a strong and collaborative workplace. Unsurprisingly, a positive work environment where employees feel valued and appreciated is more likely to keep them engaged and motivated. Cultivating such an environment is achieved through clear communication, open and honest feedback, opportunities for growth and development and a sense of belonging. Employees have different needs and preferences, so it’s also important for company leaders to be flexible and supportive to show that they genuinely care about their teams’ well-being.

To further leverage the atmosphere of collaboration and boost overall retention, managers should be implementing strategies such as goal setting, career pathing and performance management. Employees should be offered opportunities to get to know one another—whether it’s casual check-ins at the office, planned team-building activities or social events—and celebrate each other’s successes to emphasize the value and appreciation resulting from hard work.

Prioritizing Mental Health

This year’s Apartmentalize also featured a strong focus on the importance of mental well-being across the rental housing industry.

During the conference, NAA released the results of its annual Mental and Emotional Health Survey. Notably, 40% of survey respondents—across all position types in the apartment industry—shared that they felt stressed about their workload, and the same number of respondents took time off in the past year to prioritize their mental well-being.

The survey results paralleled the conversations heard throughout Apartmentalize, emphasizing the need for a much stronger focus on mental health—as well as more robust resources to support employees.

A number of other sessions—ranging from strategies for facilitating mental health conversations to actionable insights for workplace well-being resources—delved deeper into the state of mental health, providing some important takeaways for industry professionals.

Employee well-being is critical in not only retaining staff, but also improving overall morale and workplace efficiency. Well-being encompasses several topics, with the intersection of mental health and diversity, equity, inclusion and belonging (DEI&B) being right at the forefront.

Mental health affects and controls how we think, feel and act and plays an important role in how we handle stress, relate to others and make decisions both at home and in the workplace. And as the conversation around mental health continues to grow, it is becoming increasingly important to incorporate it into workplace discussions. However, many aren’t sure where to start or what to say—which poses the question: How does an organization ensure they’re implementing the right tools and resources for their employees?

It all starts with communicating effectively. No matter the industry, leaders must be able to foster healthy conversations around mental health, acknowledge the role that stigma plays in the workplace and, over time, work to develop resources, policies and programs that prioritize their teams’ well-being.

Endeavors surrounding employee well-being should also embrace and promote DEI&B.  Recognizing and encouraging diverse perspectives, experiences and backgrounds helps promote overall satisfaction and can help all staff feel included and valued.

From offering education sessions or mindfulness workshops, to developing and implementing full programs that focus on DEI&B—the overall well-being of employees should be at the forefront of every organization’s agenda. When employees are happy and feel a sense of belonging, they are more productive, and the team is more successful.

The Bottom Line

The rental housing industry continues to face challenges and, in response, adapt with what is necessary in order to continue evolving. As the industry’s premier event, Apartmentalize allowed individuals from every sector of the industry to network and collaborate on ways to meet these challenges head on. I left this year’s event with a renewed sense of optimism in the industry’s future, bolstered by the impressive sessions and conversations had throughout the week.

Bob Pinnegar is the President & CEO of the National Apartment Association.