Small Portfolios Can Save Big through Multifamily Group Purchasing

A spend management strategy that includes group purchasing is good business, even for small multifamily housing portfolios. Group purchasing unites the buying power of many smaller PMCs to win negotiated savings from a catalogue of top multifamily vendors. The value is the same for properties of just a hundred or so apartment units as it is for a portfolio of high-density communities. Apartment operators face stiffer challenges today managing expenses and must harness every advantage available. Group purchasing offers competitive advantages while assuring properties that they are spending wisely. A good group purchasing organization (GPO) fully vets participating companies and negotiates pricing on hundreds of products necessary to keep today’s apartments running at lower costs. Vendors have proven reputations and are typically among the most reputable in the industry. It’s a classic example of strength in numbers, says RealPage Director of Vendor Management Jennifer Lester. And it’s an important asset for smaller rental properties that may not have a dedicated purchasing staff or procurement manager. “Working with a GPO enables a property of any size to efficiently purchase and capture savings every day of the year,” she says. “Operators can get control of spending and peace of mind, even if their purchasing resources are limited.” Properties also enjoy the benefit of knowing that more of their purchases are from known, reliable and vetted vendors, reducing the rogue spending that can lead to a variety of problems. Tapping into a strategic vendor network Vendor relationships are more important than ever. The pandemic has altered the way many companies purchase products, and risks have grown as some vendors struggle to stay afloat. According to a recent report by the National Leased Housing Association, low- and moderate-income housing providers experienced double-digit declines in revenue and nearly a 15% increase...