Nailing resident communication as a multi-family property

March 8, 2024

TABLE OF CONTENTS

Ever wonder why some apartment complexes just feel better to live in than others? A lot of it comes down to something surprisingly simple: good communication.

When you have a clear and consistent line of communication open between your team and your residents, you’re able to craft a more positive overall resident experience, leading to higher satisfaction and retention.

On the flip side of the benefits of great communication is the risks introduced by bad communication. While 65% of residents in a recent report said that they were satisfied with communication with their property management, almost 20% mentioned that they were either not satisfied or “very dissatisfied.”

A break in communication can lead to an erosion of trust. And that negative sentiment can trickle into your reviews.

One resident at a Columbus, Ohio property said in a Google review:

“We also had extreme difficulty getting ahold of management, particularly when it came time for us to move out. No one was ever at the front desk and we couldn’t even reach anyone via phone… Overall, we didn’t appreciate the lack of communication between management and residents”

Reviews like this are not uncommon, and in fact poor communication is one of the most common complaints in resident reviews.

So… how do you make sure you’re getting resident communication right?

Let’s start by addressing where it can go wrong.

Challenges and considerations with resident communication

Scalability

If you have a small property with just a handful of units, communication can be pretty simple. But once you introduce hundreds or even thousands of residents into the mix, the same strategies won’t be effective. You have to consider ways to scale your communication so that every resident feels in the loop.

Diverse resident demographics

Communities at apartment complexes, when compared to the population of home owners, are much more diverse on average. This means that your community is likely home to a broad range of renters, including different ages, cultural backgrounds, and languages. This diversity can make it challenging to find a one-size-fits-all communication approach.

There may be a range of preferences for and comfort with communication channels — either traditional methods like notices and letters or digital communication like email, SMS, social media, and apps — as well as frequency and tone.

Information overload

Property managers often struggle to find the balance between communicating too much with residents and not communicating enough. It can be hard to determine how to ensure that your guests receive enough information to remain fully in the loop, without feeling overwhelmed.

Feedback loop challenges

Communication should be a two-way street, but this adds an extra layer of complication to resident communication. As necessary as it is to establish an effective and efficient feedback loop where you’re able to pull in and respond to resident comments, it can be tricky.

Whether it’s because residents don’t feel comfortable providing feedback, or there is no established process for them to do so, this breakdown in communication can lead to missed opportunities for improvement and a rift in your relationships with residents.

Staff training and turnover

You can’t rest the fate of your resident communication on one really great communicator on your team. Being able to train these communication skills and protocols into your team members can be tricky, especially with high turnover rates in the multi-family industry — it sat at 33% last year.

Without this training, inconsistencies in communication from staff can lead to confusion and dissatisfaction among residents.  

How to overcome these challenges

Clearly, resident communication isn’t easy. But that doesn’t mean that it’s impossible to get it right. All it takes is an investment by your team to address challenges head-on and keep resident needs at the forefront of your strategy.

Identify communication needs and preferences

You can sit in a room with your team and create what you perceive as the perfect communication strategy but you need to hold it up to the way that your residents are most likely to interact to validate it.

In order to understand which modes and cadences of communication are going to jive with your residents, survey them. This could be something you send out on a bi-annual basis, and perhaps you could build the survey into the application or move-in process.

But don’t just collect this feedback and let it gather dust. Create a reliable system to track and act on these preferences. Leverage the information to create clear communication protocols about who you contact and when.

This could be as simple as identifying the most broadly preferred communication method/consistency and leaning into that, or for larger communities with a broader range of preferences, you could even separate residents into different lists based on their preferred communication style. While there may be some messages that have to be uniformly distributed, you could deliver routine updates to some via text, some via email, and some via a paper notice.

Leverage technology

Tech is becoming an increasingly critical role in the multi-family industry, and adoption is on the rise. You can leverage technology to improve your resident communication.

There’s an increasing portion of the population that is highly tech-savvy. In fact, 79% of renters think they should be able to get everything they need, communication-wise, through digital channels like text, chat, or push notifications.

Bringing the right technology on board can not only help you align to the preferences and expectations of this group, but it can also help to automate some of the most tedious communication tasks, saving your staff time.

The key here is to integrate technology that is specifically built for certain communication purposes. For example:

  • User-friendly resident portals are table stakes now, and must give residents a place to easily submit and receive updates on maintenance requests as well as pay rent and utilities. The most innovative management teams will choose a platform that helps to manage the broader resident experience as well. Solutions like Mobile Doorman are popular with property managers for its ability to send real-time and automated communications, automate common resident processes, send out surveys, and allow residents to RSVP to community events, among other benefits.
  • Seamless parking is one of the main priorities for residents, so it’s important to have a reliable system (like Parkade) for them to not only reserve parking but also to communicate when issues arise such as someone parking in their spot or gate access issues.
  • Social media is a good non-intrusive, low-touch option to keep residents informed of any fun events coming up.

For some technology that residents aren’t already using, it may be worth sending out a short training guide sheet or video to help them make the best use out of it.

Manage crisis communication

Times of crisis bring on the most pressing need for good communication, but often this is the time when your processes are most likely to break down in the chaos of the event. Whether it’s power/water outages, natural disasters, fires, or security threats, you want to make sure you have a reliable and effective resident communication plan in place for these critical moments.

Often, management leaves communication up to legal or risk management, but this can be a mistake since they’re often not taking into consideration the emotional elements at play. It’s important to come together as a whole team, both resident-facing and not, to strategize ahead of time.

It’s wise to prepare scripts and protocols ahead of time. For example, here’s a potential plan for when a hurricane strikes in a coastal community:

  • Management publishes updates every 24 hours leading up, and then every 4-8 hours during the event.
  • This information could include:some text
    • How to contact management during a power outage
    • Precautions to take ahead of time
    • Actions that are currently underway

To make this critical communication more streamlined, consider pre-programming some message templates ahead of time so that it’s easy to schedule them out when crisis strikes.

In times of crisis, transparency is the priority, and it’s crucial to building trust and giving your residents peace of mind. Even when you’re delivering bad news, residents would prefer to know rather than being in the dark, and they’ll appreciate timely updates in moments where so much else is uncertain.

Encourage resident feedback

As we said, the breakdown of the feedback loop can be a major barrier to great resident communication. So you should not only create a vehicle to request/collect this feedback on your communication — whether it’s via a physical dropbox, email, an anonymous form, or regularly scheduled surveys — but you should also encourage and even incentivize it.

Make sure that collecting this feedback isn’t merely a formality. Schedule time to carefully review the data you’ve collected, identifying themes, and strategizing ways that you can improve your resident communication processes.

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BlogParking Management Software ROI

Investigating the ROI of parking management software

With parking being one of the largest drivers of ancillary revenue at multi-family properties, it's imperative to get it right. But just how much return can you expect from parking management software? Read on to find out.

Published: August 7, 2024
Hannah Michelle Lambert
Content Writer
Boosting ancillary revenue is often a major focus for property managers and owners alike.

Especially given that the baseline forecast for rent growth is slightly lower this year than average (2.5% versus 2.9%), properties are increasingly looking for ways to raise their bottom line without compromising the quality of living for their residents. 

One often overlooked but significant opportunity lies in parking. If managed well, it’s a potential treasure trove for additional revenue. But that’s only if it’s done well. 

Parking tends to be one of the biggest thorns in the side of a property manager. Because traditional systems — like spreadsheets and rentable items — are not built to handle tenant parking efficiently, teams aren't able to reap the full benefits parking has to offer as an ancillary revenue source. As soon as a team makes the decision to invest in a proper parking management system, the benefits often more than pay for themselves.

In this guide, we will explore those benefits, touching on both the financial and operational upside of a solid parking management strategy.

We’ve combed the data from all of our clients to identify the exact numbers to prove that there truly is ROI in parking management systems like Parkade. 

Understanding parking management

Before we dive into the numbers, let’s first establish a baseline of what exactly parking management entails. As any property manager will tell you, it involves much more than just hanging a tag on a resident’s car and calling it a day.

The key components of a parking management system are:

  • A system of record to track parking assignments, lease lengths, vehicle details, and parking prices, ideally integrated with your PMS.
  • An enforcement strategy that ensures parking rules are clear and establishes consequences (typically fines or towing) when someone breaks them.
  • A method to pay for parking, whether it’s bundled in with rent (which we don’t recommend) or paid for in a separate system.
  • A self-serve system for residents and guests to book long or short-term parking. 
  • If there is a gate on the property, provisioning and deprovisioning of gate entry should also be considered in the parking management strategy. 

The old-school way of addressing these needs isn’t cutting it anymore. Many properties are still using manual processes, like an Excel spreadsheet, rentable items, or even a physical piece of paper to keep track of their parking. 

And far too often, properties are relying too heavily on staff members to handle parking matters that take up a significant amount of time, like enforcement or guest parking.

Moreover, there’s one point that just can’t be ignored: If you’re still using old-school parking management systems like spreadsheets and rentable items, you’re leaving money on the table. 

So the parking management we’re discussing here that delivers positive ROI is a technology-led solution that automates all aspects of parking operations, improves resident experience, and unlocks new revenue streams.

Setting the stage: Residents value good parking

Delivering on resident expectations should be a main priority for any multifamily property, and parking is one area of the resident experience that is especially critical to consider here. 

65% of property managers cite parking as a top concern among residents. Whether it’s for existing residents or prospective residents, providing a simple, reliable, and flexible parking solution has a direct impact on the success of your property. 

Part of this is due to reputation. Properties have reported a 44% increase in their reputation scores after fixing their parking problems. And this boost in a reputation score can trickle into several different areas, boosting not only the number of new residents, but also leading to more renewals from existing residents.

But we know you want the hard dollar amounts, so let’s talk more about some real-world outcomes that Parkade's parking management software delivers. 

So, what do the numbers say about the ROI of parking management software?

Long-term net parking revenue for stabilized buildings

Once properties implement a system to help them optimize pricing and management of long-term parking, they see immediate gains in their long-term parking revenue. The average 6-month increase in net long-term parking revenue for the cohort of 7 properties we sampled was 24%, translating into thousands of extra dollars. 

Long-term net parking revenue for lease-ups

Better parking management also empowers properties to far outperform their projected revenue from long-term parking when they’re in the lease-up phase. 

On average, properties from the cohort we sampled estimated that they would bring in $15,925 on average from long-term parking revenue per month. But thanks to Parkade helping them optimize their parking strategy, better enforce their parking rules, and keep a better record of who is parking where, the average revenue from long-term parking was $23,450 on average, which is a 47.3% increase from the estimates in their pro forma. 

Total net parking revenue for stabilized buildings

For buildings that are already at full occupancy, the average increase in parking revenue sits at 31% once they implement Parkade’s parking management solution. 

Revenue metrics for lease-ups

The best time to implement new parking management systems is at the inception of the building. Getting parking right from the beginning ensures that you are maximizing total parking revenue from day one, as well as establishing a positive reputation around parking. Many properties underestimate the revenue from long-term parking and may often leave out potential short-term parking revenue altogether. 

When a few properties we worked with during this phase were estimating parking revenue at the start of their lease-up, they estimated around $35,000 on average. But the results, since they decided to go with Parkade right from the start, blew those numbers out of the water. In reality, they were able to bring in closer to $58,000 on average, which is a 66% increase from the estimates.

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Short-term parking: An opportunity

The boost in revenue continues to be apparent when you zoom out to look at short-term parking, too. Short-term guest parking can be one of the most underutilized revenue streams, and represents a huge opportunity for multi-family properties to tap into. However, it's historically been very difficult or impossible for properties to see this revenue without parking management software that automates the process.

Especially in popular areas, like city centers or near shopping malls and sporting arenas, there’s often a high demand for short-term parking. When properties put a system in place to monetize this guest parking, they can unlock hundreds or even thousands of extra dollars per month. 

Automating guest parking

Without a good system in place to manage parking, many properties often leave guest parking as a free-for-all (meaning they don’t make money from it), or if they do attempt to monetize guest parking, it turns into a massive beast to handle. 

Erica, a property manager at Thrive Properties, told us about her pre-Parkade experience with guest parking, preventing them from delivering on a key resident need: “There was no world where we were doing short-term parking by the hour or even by the day because there was just no way to manage that.”

If you have a complicated or inconvenient system for guests to reserve parking, especially one where they have to walk into the office during office hours, guests are often more likely to try to get away with not paying for parking. (And if you don’t have a great system to enforce parking, they may very well get away with it).

With the right parking system, you’re able to give guests a flexible, 24/7 solution, removing any previous barriers that may have caused them to break the rules out of convenience. 
Maximizing guest parking availability

Another way that manual parking management may stand in the way of effectively monetizing guest parking is the inability to accurately track how many spots you have available for guests to reserve in the first place. 

Taylor, the property manager at Strata and Venue, shared her experience of desperately needing more guest parking and discovering they had a full 50 more open spots than they thought. 

“We actually had way more spots that we could have used for guest parking, but we didn’t know that because of the way we were using our parking system. Not to mention, we wouldn’t have the system to leverage them without a Parkade.”

When your parking management system gives you an accurate, real-time view of available spots, you can leverage guest parking to its full capacity.

Utilizing idle parking spots

A reliable parking-management system also allows you to make the most use of every single spot available. With technology that uses smart inventory management, properties can release idle or unassigned parking spots into the system for short-term use. So spots that would have otherwise been sitting empty between leases can suddenly be leveraged as an extra revenue-generating spot in the meantime. 

Net revenue for short-term guest parking

When properties have a great system to implement paid guest parking, without putting too much strain on their staff, they immediately see a boost in revenue.

They’re able to turn an operation that was perhaps bringing in no money — or some revenue, perhaps at the expense of staff time —  into a significant revenue source with little-to-no staff involvement. 

On average, Parkade customers experience a 303% increase in their guest parking revenue after Parkade fees. And there were some properties that saw almost a 400% increase.

Opex (operational expenses) savings

When handled manually, parking management can steal hours from on-site property management teams every week. Between fielding requests or complaints from residents, tracking down parking records, walking the lot to enforce rules, handling guest parking, and manually inputting rentable items, parking can quickly balloon into one of the most time-consuming tasks for staff.

Parking management software can automate away a lot of the most tedious aspects. For example, Parkade gives residents self-service access to reserve and pay for parking (while allowing for any rule sets the property wants to enforce), provides hands-off enforcement support, and even automates gate access via the app so that teams don’t have to worry about distributing or replacing clickers. 

Properties have seen that the time teams no longer spend on parking leads to a direct decrease in operational expenses. As a result, they can redistribute those team members' time to more meaningful tasks.

On average, we’ve seen properties decrease their operational expenses by $60,000-$100,000 from savings on parking operations alone. This means that they were able to save what’s equal to a full-time employee’s salary. 

Annual NOI improvement

All of the revenue metrics mentioned up until this point have been after Parkade's fees. 

When you roll everything up together — both the increase in revenue (after fees) and the opex savings — investing in parking management software has an incredibly positive impact on annual Net Operating Income (NOI).

Whether teams are looking to calculate their property value, secure financing, make operational decisions, or pitch to investors, NOI is one of the most critical numbers to boost. 

By coming at NOI from both sides, in terms of opex savings and revenue generation, parking management technology is extremely low-hanging fruit when it comes to boosting NOI. 

At the Parkade properties we surveyed, teams saw anywhere from a $66,000 to $126,000 improvement to their net operating income from parking alone. 

While parking may not seem like it deserves to be the biggest priority for many properties, the numbers tell a different story. By investing in a proper parking solution, properties are able to significantly improve upon all of their business goals, whether it’s boosting revenue, streamlining operations, improving resident experience, or all of the above. 

About Parkade

Parkade is the #1 parking management software for multi-family buildings. With our resident-facing app and staff dashboard, parking runs itself. Your team will boost revenue, reduce time spent on parking, and improve experience for residents and guests, all without lifting a finger.

Explore our features below, built for communities just like yours.

Ready to transform parking?

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