NMHC OPTECH 2019 in Dallas was the place to be for multifamily real estate execs seeking strategies to raise their game using technology — especially looking ahead to a likely downturn. In lively peer roundtable discussions and dynamic property and revenue management workshops and sessions, industry insiders dove into the big issues facing multifamily businesses. Compelling strategies emerged for growing revenue, managing all lease types and improving the customer experience using new technology. Read on for our top five takeaways from this year’s event.   Unleash data Gone are the days of making business decisions based on guesswork and backward-looking data aggregated into spreadsheets. Today, new technology automates data collection with advanced analytics to provide a complete picture of a portfolio’s opportunities and future risks. That’s big data, and it’s a big deal. At OPTECH, experts talked about the valuable business intelligence hiding in your company’s data, and how to capture it to improve all operational systems and processes from front office to back office, including revenue management and rental pricing. In the session “Apples to Apples: Getting Clean Consistent Data for Accurate BI” data experts and asset managers discussed evolving corporate best practices in performance data tracking. Starting with clean, reliable data from a single database for one source of truth is essential. Using a system that leverages that data with machine learning and artificial intelligence to deliver predictive analytics with recommended actions is keeping leading companies ahead of the curve. And don’t forget about futurecasting. You can get a clear picture of potential future income using reliable operational data. Smart forecasting tools drill down to lease level data and also factor in market conditions and industry dynamics, so you can stay agile and plan for what happens next.   Protect information The...

The City of Toronto has proposed new regulations for the short-term rental market. The proposed changes will affect owners of short-term rentals, rental agencies such as Airbnb, as well as hospitality and multifamily specialists. The City of Toronto is the first Canadian city to draft policy for this sector of the hospitality industry. Hosts and renters alike have known that regulations for the short-term rental market were inevitable. According to an Ipsos Public Affairs survey, 74 percent of Toronto residents believe short-term rentals should be permitted with some regulations. The Need for Change Several factors contribute to the need for new legislation regarding short-term rentals. Four issues top The City of Toronto’s list of motivating factors. Housing Shortage Population growth has outpaced the construction of new homes in Toronto, resulting in a housing shortage and affordability crisis. CMHC Rental Market for 2015 reports that a healthy vacancy rate is about 3 percent. Toronto’s vacancy rate is 1.6 . The lack of supply directly affects affordability. The Brooke Amendment to the 1968 Housing and Urban Development Act established a standard that is honored throughout much of North America. The Amendment stipulates that allotting more than 30 percent of household income towards housing is a measure of housing unaffordability. The City of Toronto cites the following CMHC data: 28 percent of owners spend a third or more of their income on housing, while 44 percent of renters spend 30 percent or more. The City of Toronto is exploring the connection between the short-term rental housing and the shortage of available housing stock. Hospitality Plateau EX26.3, a document that details the proposed regulations for short-term rentals, provides an overview of the proposed changes. It states, “Growth in the short-term rental market may be one of the factors...

Airbnb announced the official launch of its multifamily housing program. The Friendly Buildings Program welcomes collaboration with apartment owners and addresses their apprehensions regarding transparency and accountability—that is what it attempts to do, at least. Nearly 35 percent of multifamily property owners are interested in a home-sharing program and 24 percent of owners were unsure, reports the new National Multifamily Housing Council (NMHC) home-sharing survey. Nearly 60 percent of multifamily property owners are open to the idea of Airbnb onsite. The market is a powerful growth opportunity for the company if it can overcome owners’ concerns. In the past, apartment owners routinely resisted the use of their properties for short-term rentals. The legalities of renter subleasing and inadequate insurance provisions topped the list of objections. Security and accountability trailed close behind. The Friendly Buildings Program proposes the following solutions: The program brings property owners into the loop of transactions. Owners can establish parameters for unit-sharing, including restrictions. Short-term rental provisions are made easy through lease addendums. Owners are notified of home sharing activity including reservation details and guest information. Owners receive regularly scheduled activity reports. The program protects against liability claims up to $1 million USD that occur in a listing as well as up to $1 million against third party claims of property damage or bodily injury. Kim Duty, Senior VP, Public Affairs & Industry Initiatives at NMHC summarized many owners’ thoughts on the insurance proposal, “A $1 million insurance policy is not close to enough to cover the potential risks.” Until more can be done to reduce liability, Airbnb faces a formidable obstacle. Most owners won’t move forward without a feasible insurance solution. Mark Stringer, executive Vice President at Avenue5 Residential took a quick survey of the room. More than 75 percent of...