With more people turning toward renting as a preferred option for their living situation (no down payment, less costly repairs, more amenities), the need for more apartment complexes is skyrocketing. As the demand for more individuals to move into apartments has increased, the amount of options available to the consumer has as well. With so many options in the space, how can you ensure that your multifamily business stays profitable for years to come? The answer lies within something you and your team create each and every day – your data. More specifically: tenant behavioral data.
All industries, commercial real estate included, are feeling the need to make more of their decisions using consumer-driven principles. With more choices on the market than ever, consumers don’t need to cut corners. With the expansion of the internet and other digital technology like Yelp and Facebook reviews, prospective tenants know a lot of information about your multifamily offerings before stepping foot on the property. This opportunity could actually become your greatest asset quite easily. Armed with data about tenant desires, you can make changes like upgrading your dog park or adding a new espresso machine to the lobby to keep your current tenants renewing and your aspiring tenants interested. Using your data to create unique service offerings can help differentiate your multifamily properties from the competition.
We can understand the apprehension you may be feeling. We get it – you and your team have been successful in this industry for some time now, and with those years of experience comes knowledge. We aren’t suggesting that you completely eliminate your gut feelings in decision-making processes, but rather, that you should supplement them with cold, hard data. The best part? You already have this data within spreadsheets, files, and property management systems in your organization.
Using your data is crucial for continued success in this decade and beyond. But don’t just take our word for it, according to a study by MIT Sloan School of Management, 66 percent of executives in the U.S., regardless of industry, reported a distinct advantage as a direct result of using data to drive decisions in their operations. Additionally, a study conducted by Harvard Business Review discovered that U.S. companies that perform in the top 33 percent of their specific industries use data as a decision-making tool, allowing them to be more productive and profitable.
How can you start to use your tenant data to make decisions in your multifamily business? It’s actually easier than you think. Data management platforms help store and organize all of your data in one centralized location so you can quickly and easily analyze it. This is essential for growing portfolios and companies that need all of their departments to work off the same source of truth. Often, investing in data management software positions CRE companies with a positive ROI and saves days of manual tasks and processes.
Utilizing your data and understanding the “story” behind it helps CRE companies stay ahead and take action faster before things like occupancy, bad online reviews, increased expenses, or a property with a terrible maintenance problem eats into performance.
Learn more about how Lobby CRE can help you leverage your unused tenant behavioral data to make profit-boosting decisions today.