Summer Turnover Prep for Property Managers
Why early planning is key to smoothly navigating this busy season.
Summer is almost here, and for multifamily property managers, that means significant operational challenges as rental season hits full swing. May through August are popular months for people to relocate, leading to higher unit turnover. Embarking on property renovations during the busy season only adds to the complexity, calling for robust planning and careful coordination.
Turnover tends to peak in the second and third quarters as renters move more often in the spring and summer months, driven mainly by holidays and school calendars as well as weather, according to a 2020 report by CBRE. For multifamily REITs, the third quarter generally has the highest turnover of the year.
One way that property managers can mitigate summer upheaval is to try to reduce departures during the season, both by boosting retention rates and by distributing lease expirations more evenly throughout the year. Multifamily operators can promote retention by dangling incentives to renew, enhancing resident satisfaction and offering flexible lease terms. Revenue management software platforms, now standard in the industry, allow property managers to track lease expirations and help ensure they’re strategically timed.
Smart systems
According to Patti Higgins, director of property management at Parktown Living, which serves several markets from Texas to North Carolina, “Property managers are increasingly using smart systems to stagger lease expirations, which helps prevent mass move-outs and maintains occupancy stability.” She added that prioritizing maintenance through prompt repairs and preventive programs helps keep residents happy, reducing avoidable move-outs.
Matt Foster, CEO of Greenville, SC-based NOAH Property Management, said the company starts renewal conversations 90 or more days in advance and encourages early notice from nonrenewing residents. “That allows us to stagger move-outs and minimize peaks in turnover along with getting our crews ready to execute turns within seven days,” he said.
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Early planning is key to smoothly navigating the busy season. Brittany Ping, director of property management for Ledgeview Commercial Partners, described the approach as “plan and pray.”
“During nonpeak months, we work to make sure turns are a well-oiled machine,” she noted, adding that the company ensures it has a good rapport with external vendors and that internal staff are aware of what’s in the forecast. “When peak hits, we count on the goodwill of that work to sail us through.”
Getting work done
Keeping apartment properties in great condition is an important way to retain residents—but rolling out renovations and improvements during the busy season can create coordination headaches and disruptions to current residents in the form of noise, temporary closure of amenities and other inconveniences.
Many property managers aim to complete major maintenance and capital improvement projects during the winter and spring seasons to ensure that each community is ready for a wave of new residents during the summer. That means units are “rent ready” and outdoor amenities such as swimming pools and grills are in good working order when hot weather arrives. Summer work, by contrast, can be focused on vacant units.
“Controllable capex projects are scheduled strategically with our district service managers to align with seasonality and ensure full use of outdoor spaces and amenities,” noted Ryan Perez, executive vice president with property management firm Capital Square Living.
When large projects need to be executed during the summer, clear and proactive communication with tenants can reduce friction. Property managers say it’s crucial to provide guidelines to residents on what to expect and how to plan around inconveniences. Email, resident portals, text alerts and community boards are the preferred channels for getting the word out.
For example, Parktown Living provides residents with at least 30 days’ notice for major projects at properties it manages, including details on the scope and timeline as well as potential noise and access restrictions, according to Higgins. She added that it’s critical to explain the purpose and benefits of the project and set realistic expectations.
“It comes down to good building staff and reliable contractors,” said Nicholas Cataldo, a property manager at David Associates, which manages apartment buildings in New York City. He added that constant communication with renters moving in and out is paramount. “There isn’t much you can do to minimize disruptions other than to do them as quickly as possible and do them when there are fewer residents in the building.”
Staffing snags
Additional leasing traffic during the summer often puts strain on staffing resources. Property managers may hire additional staff on a full- or part-time basis to accommodate the increased demand.
Throwing construction projects into the mix increases the need for careful planning and scheduling.
Capital Square Living partners with its human resources team at the corporate level to ensure that all open roles have active job posts on Paycom, LinkedIn and Indeed within 24 hours of a vacancy, according to Perez. Priority openings such as community manager and service manager are promoted on various platforms to boost visibility, he added.
For high-volume properties owner and operator Lexerd Capital Management uses “floaters” to support unit turns, according to founder & CEO Albert Lord. Weekly meetings between the construction and property management teams keep everyone aligned during projects.
Foster said NOAH Property Management augments its summer team with seasonal help and relies on trusted vendors booked well in advance. To avoid delays, the company pre-walks its units to understand the future scope of work needed.
Cataldo observed that during the summer, he has trouble finding workers to cover his regular staff during their vacation weeks, which usually means giving overtime to coworkers. Ensuring resident satisfaction can reduce the strain on staff. “Tenants want stability in their lives, and the more you retain tenants, the more community is formed, and the less they’re dependent on management and staff for help. This frees up management and staff to make other improvements that tend to get pushed to the back burner.”
