At Maximize powered by NAA, the annual conference dedicated to asset and revenue management and long-term value creation for apartment portfolios, industry pros talked about how changes in the economy — including an expected downturn ahead — will impact multifamily revenue management. This year’s sessions covered renovations and amenities in some detail, with panelists speaking about the importance of flexible strategies when navigating changing markets. For example, there might be less demand than anticipated for high-end renovations. Conversations also turned to smart home technology including self-showing programs, and short-term rentals as a new revenue stream that would be increasingly compelling in struggling rental markets. While some attendees have only known growth, experienced revenue managers who maneuvered through the last recession shared tactics and valuable lessons learned. Although it’s unclear exactly when the next downturn will happen, the consensus at Maximize was it will happen. And the sooner you’re ready for it, the better. Curveballs ahead So how do you prepare for a downturn? Experts agree that having a well-informed revenue management strategy in place is crucial, and that means having tools to collect data to uncover trends and follow patterns in order to make smart decisions. Beyond finding the sweet spot for rental pricing, auditing your properties for other ways to boost performance is also a great idea — including assessing amenities and reducing unnecessary expenses. In addition to knowing how to price units based on inventory and market conditions, the most effective revenue managers also know every selling point of each property in their portfolio. With the advent of artificial intelligence and machine learning to guide asset management, sometimes the computer knows what’s happening before people do. In times of both growth and recession, the most successful revenue managers will be using a...

As we head into uncertain economic times, is your multifamily portfolio recession proof? Now more than ever, you need data you can trust and a smart revenue management strategy to set competitive rental prices, maximize occupancy and spend marketing dollars wisely. And, with the arrival of artificial intelligence and machine learning to inform business intelligence, computers understand what is happening in the market before people do. In a July 2019 Forbes article, “Three Ways to Recession-Proof Multifamily Properties,” the author stated “Just as ‘all politics is local,’ so is real estate. In their Beige Book, the Federal Reserve governors said real estate activity is declining in some regions even as others pick up the pace. Much of that activity centers on multifamily real estate: 319,000 apartments are due for completion this year nationwide, which the Wall Street Journal determined is the most new units in about three decades. Local conditions should dictate new multifamily purchases and impact investors’ efforts to recession-proof already-owned properties.” Come for Answers So, how do you drive property performance in a changing industry? Join us at Maximize 2019 for some great answers — NAA’s premier event taking place on September 23-24 in Atlanta. This year’s conference will focus on the intersection of asset and revenue management and will deliver knowledge and tactics that attendees can put into action. Educational sessions include the must-attend “Revenue Management and the Recession” on September 24 at 10:00 a.m., moderated by Dhar Sawh, industry principal of revenue management at Yardi. Sawh will be joined by panelists Trey Lane, vice president of pricing and revenue management at Progress Residential, Michael Lilly, director of revenue management at Weidner Property Management and Jessica Mills, senior consultant at D2 Demand Solutions. Attendees will discover what experienced pricing managers learned during the last recession and...

Shrewd apartment owners understand that the greater financial value in an apartment transaction can be had during the acquisition—not the exit. Industry veteran Ian Mattingly, President of LumaCorp in Dallas, speaks from experience. He is part of a management team that carries more than 90 years of investor experience when it comes to applying due diligence. LumaCorp owns 24 communities that include over 6,000 total units. It has made 45 acquisitions in the past 32 years. Mattingly is one of three panelists who will speak about how to avoid “nasty surprises” during the process at a session at MAXIMIZE: 2016 Multifamily Asset Management Conference at Loews Coronado in the San Diego area Oct. 17-19. “When we begin our talks with new investors, we like to tell them that we have a lot of experience in making mistakes,” Mattingly says. “We tell them not to expect everything that happens when buying and selling apartments to work out perfectly. We have made our fair amount of mistakes. But what we also tell them is that we won’t make the same mistake twice.” Mattingly, whose firm focuses on Class B and C properties in Texas, will share knowledge about the process that is applicable to any apartment market. Among his focus will be re-inspections, city and county governments, building codes, fire codes, lease addenda, repairs and resident audits. “We specialize in markets where the bulk of the apartment product was built in the 1980s.” Mattingly says. “So we’ve been buying ‘80s-vintage properties for over 20 years. Of course, those properties are a lot older now than they were 20 years ago.” Inspections. Mattingly says it’s easy to overlook issue with city codes and inspections during due diligence. “You’ll find that as some of these buildings get older,...