In the not-so-distant past, property management (PM) teams were the go-to solution for developers and owners looking to handle everything from marketing to leasing.
It worked, at least for a while.
PM teams evolved into quasi-marketing entities, taking on basic marketing tasks. They rolled marketing and marketing-adjacent services into their fee structures, and most developers and owners didn't think twice.
However, over the last decade, a significant shift has occurred in how properties are marketed, especially in most metro areas' (highly competitive) multifamily verticals. Gone are the days when marketing meant relying just on foot traffic, A-frame signs, and a nice building.
The multifamily market is now more dynamic than ever, demanding that we engage and meet with potential renters where they are – online.
The priority has shifted away from simply differentiating a project at a high level to running robust digital marketing campaigns that fuel a modern lease-up process. In many cases, the capabilities required for these tasks have surpassed what a typical PM team can handle.
Enter the specialized multifamily marketing firm – experts in creating brand experiences and executing powerful digital campaigns specifically for the real estate industry.
While some PM teams attempt to bring marketing in-house, the results, respectfully, are often subpar. Other PM teams hire external agencies, but the associated mark-ups can make this approach expensive and counterintuitive to the cost-saving mindset of working with an all-inclusive PM partner.
Either way, for developers and property owners, the net result can be suboptimal work or, in some cases, a partner attempting to turn the marketing package into a profit center—revenue over results.
The question arises: How should you choose between a specialized multifamily marketing firm and a property management company?
Let's jump into a few considerations:
When all else fails, consider the math. Here's an example:
A 150-unit building with $2K average monthly rents nets $300K each month. Suppose you work to stabilize over six months instead of twelve, meaning just under $2M in stabilized cash flow in half the time.
If you invested $200K into your marketing budget, that's an 8-10X ROI.
In a landscape where the multifamily market is evolving rapidly, choosing the right partner for marketing is a strategic decision.
While some scenarios may still favor traditional PM teams, the trend suggests that the capabilities offered by specialized multifamily marketing firms are increasingly becoming a necessity for developers and property owners looking to thrive in the competitive and dynamic multifamily space.
As the saying goes, in today's market, it's not just about building it; it's about ensuring they come – and then stay.
Outdated zoning laws are fueling the housing crisis, and bold reforms are essential to unlock affordable, sustainable, and equitable development.
This week, we're digging into why great buildings deserve more than an ILS package and a templated logo.
This week, we debunk the myth that 94% is good enough and how to raise the bar for stabilized revenue.
There's a lot hype about branding—this week we're digging in on hard numbers and real impact.
A simple read in under 5 minutes, delivered to your inbox Saturday mornings.
A simple read in under 5 minutes, delivered to your inbox Saturday mornings.