Operational Strategies for the Uncertain Fall and Winter Ahead

It’s cloudy out there. The many unforeseen consequences of COVID-19 have forced us to re-evaluate our operational strategies. And the clouds keep rolling in: eviction moratoriums, an unclear timeline for a COVID-19 vaccine, mixed signals on the economy and a heated political environment on top of it all. That means we aren't necessarily assured a strong leasing season next spring. For the property management industry, questions arise. What's the fall or winter going to look like? How should you approach marketing, leasing, pricing and risk to make sense of it all? Clearly, it’s necessary to set and execute a smart strategy for these next few critical months ahead. Fortunately, there’s some clarity to be shared from a conversation with asset management experts at RealPage during the company’s RealWorld 2020 conference. Jay Parsons, VP Asset Management, asked David Polewchak, Industry Principal and Andrew Bowen, Industry Principal to weigh in on practical, strategic approaches to pierce the fog and move ahead. Here are just a few highlights. Dealing with reality. COVID has created new realities for property managers. Case in point: The apartment market took a hit in spring and summer but has withstood the storm better than expected. There was a very strong summer period for leasing demand, with sky-high retention over six months as people couldn't or wouldn't move. But a lot of that came via short term lease extensions, which could create exposure issues as those leases expire. Another fact on the ground, this time in marketing: From the demand perspective, leads are always critical. But, according to RealPage’s Andrew Bowen, the reality is that demand is finite right now. There are only so many people looking for an apartment in individual areas, with the number dropping in some places and increasing in others. Mr. Bowen believes the industry can deal with these realities now by reframing strategy from an effectiveness standpoint. C...