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.
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