In the good news department, an analysis of more than 1 million market-rate units from MRI Software has found that the market is returning to pre-pandemic patterns to be more predictable as reported in a Multifamily Dive article.
In 2019 before the pandemic hit, the data showed most move-ins and the best time for leasing were May through August. Then it slowed down by fall and winter when it was colder, indicating seasonality impacted apartment leasing.
What Experts Say About the Apartment Industry’s Winter Outlook
Another bit of news affects the industry this winter. “Apartment demand continues to rebound in 2023, even as rent growth flattens. In other words: It’s rent disinflation without demand destruction. Why? Supply, supply, supply. Apartment completions in 3rd quarter soared to the highest level since the 1980s,” states RealPage’s Early Edition 3Q23 U.S. Apartment Market Report.
The report states it’s a 50-year high in apartment construction as more than 400,000 units will go online across the U.S. during the toughest time of the year, which is winter. This puts potential residents at an advantage as they will have more options. Fortunately, only one area has experienced negative rents and that’s in Minneapolis per Multifamily Dive.
Therefore, it’s not a surprise that apartment property managers have switched their focus to expiration management. In some cases, they may resort to concessions, such as no or minimal increases on lease trade-outs. Another potential concession is offering free rent for a limited time. Some managers are trying to overcome this by moving lease expiration during the warmer times of the year.
Winter Challenges for Multifamily Residential Properties
Recent winters in North America have seen a lot of wild swings. Some places experience warmer than typical winters while others hit extreme lows. A few may have experienced both.
These wild swings are the hardest on multifamily residential properties. It’s because temperatures drop to below freezing one day and instantly warm up the next day causing the pipes to freeze and break. This results in a flood.
According to the Insurance Information Institute, winter storms are an expensive problem as they caused almost $6 billion in insured losses last year. This is the second-highest year on record in the past decade. The years 2021 and 2022 were in the top three costliest U.S. winter events based on insured losses.
Multifamily residential property teams can be proactive in reducing risk, minimizing damage, and maximizing safety and security. Here are the tips to prepare for the unpredictable winter months.
1. Start planning for winter early
Don’t wait until the weather report announces a freeze warning to start stocking up on supplies like salt and sand. That’s too late. There’s a good chance stores will sell out and the price will be higher. The best time to buy these supplies is during the hot months when it’s not on anyone’s mind. The supplies are more likely to be priced at the lowest rate. You might be able to find more savings by buying in bulk.
Winter comes every year. There’s no avoiding that. The best way to prepare is to document a winter plan that you can use annually. It’s a way to ensure you check off every step. Again, start this process months ahead.
The plan needs to include resident education, winter weather procedures, and winterization checklists. Think of every possible scenario and how you want to address them. For example, what does the team do if a pipe breaks? What do you need to communicate with residents and when? Do residents know how to evacuate the building safely?
There should be a checklist for inspections. It’s critical to inspect the property for slip and fall hazards, broken lights, loose or broken handrails, cracks, and other potentially dangerous hazards.
Since you’re going to buy salt and sand early, do you have a place to store them? Make sure the plan mentions this, so employees know where to find them. Something else you want to consider is having portable battery-powered lighting. You want to be prepared for a power outage and ensure residents can move around the building and parking lot/garage safely.
2. Communicate and educate employees and residents
You can never overcommunicate when it comes to safety and security. Communication and education can go far in helping reduce risk and increase safety. Train employees and residents about safety and security. Not just in the winter but also year-round. Your security is only as strong as your weakest link. And people’s mistakes are the weakest link.
The other advantage of training everyone is that they add bodies and eyes around the apartment community. Here are some suggestions on things to talk about in training.
- Describe how to find and report problems with plumbing, electrical, lighting, heating, and detectors.
- Explain how to check smoke and carbon monoxide detectors and batteries on a regular basis.
- Make it easy for them to report problems and describe the process.
- Provide advice on things such as not using portable heaters and how to cook safely.
- Share tips on how to ensure holiday decorations are safe.
- Give them instructions on how to protect pipes and plumbing.
- Discuss evacuation, fire safety, and procedures because apartment fires can spread fast.
- Cover what to do in the case of a power outage or broken pipe.
Do you have an online community for your residents? Do you communicate with them regularly through emails or other methods? Do you host educational sessions on a regular basis? Do you distribute flyers and information? (Not everyone is online savvy.) These are all valuable ways to spread the message to ensure you reach everyone.
3. Stock or restock supplies
As previously stated, don’t wait until winter to stock up on supplies. That’s why the winter plan is important. You might consider creating a timeline to help you remember to do certain tasks early on.
Ice is hard to see, especially black ice. Therefore, being prepared for it is essential. However, be aware that rock salt may be cheap, but it can damage concrete and cause vehicle parts to rust. Also, it won’t work when temperatures fall below 20 degrees Fahrenheit. A better option is calcium chloride, which is more expensive.
It can handle temperatures as cold as -25 degrees Fahrenheit. An important thing to know about calcium chloride is that it can burn the skin. And when its temperature climbs, it can produce a toxic chemical that can burn inside the lungs.
Another option to explore is calcium magnesium acetate. It’s less corrosive than rock salt. The catch is that it needs to be applied before bad weather happens. It doesn’t melt ice, but it makes snow and ice removal faster and easier except when it’s below -20 degrees Fahrenheit.
It’s essential to stay current on winter weather advisory reports and prepare based on your de-icing plan. As you can see, temperatures can affect salt and sand performance. Which one to use depends on the location of the apartment property. Better yet, contact professionals for their advice on what to use and how to use it correctly.
- Turn on the heat
Apartment communities need to switch from air conditioning to heat. This is a preventative maintenance step. The same goes for changing filters. The heating system may be different as some buildings may allow individual units to control the heating while others don’t. It’s critical to do proactive maintenance to ensure the heat comes on when the residents are ready. - Check the lighting
As it gets darker earlier in the winter months, it’s important to stay on top of lighting, both indoors and outdoors. You don’t want to risk someone not seeing the ice and falling. Long before winter comes, consider working with a lighting consultant to verify you have an optimal lighting setup.
One thing you might look into is whether motion-activated lighting or around-the-clock lighting is better. It may depend on the areas where the lights are located. Experts can also review the apartment community to make sure it has the right type of lights, color of lights, and in the right places. Lights are such a powerful and simple way to boost safety and security. In addition to having the right lighting, it’s important to inspect them regularly for broken lights. Video surveillance can help with that.
6. Use video surveillance with remote monitoring
Security cameras with remote monitoring can stay on top of plumbing, lighting, and safety issues. You won’t need to have someone constantly walking around the multifamily residential community looking for problems. A remote video surveillance system helps protect the community.
It can help catch problems early and deter crime. Video cameras installed around the property can provide a complete view of everything by putting multiple eyes on the property and constantly scanning for problems.
Remote monitoring can consist of trained human monitoring operators, artificial intelligence, video analytics, or a combination. For the most accurate and complete security coverage, opt for technology and human monitoring. They both have strengths that fill a gap the other has.
Apartment communities often have people coming and going. This can put the community at risk for tailgating or piggybacking. This is why it’s important to educate residents and employees. Even so, they may not remember to keep this from happening. Cameras help watch for these incidents.
The monitoring operator is in a location away from the community. It removes the awkwardness of being there in person to tell someone they cannot enter. They’re able to help deter suspicious people as their lives are never at risk. They can also help prevent package theft. All video recordings can be saved. These can be used to provide evidence for investigations and liability claims.
Video surveillance with monitoring could utilize an onsite speaker. This lets the monitoring operator alert intruders they are being watched and instruct them to leave the premises. Adding video surveillance with remote monitoring can help maximize multifamily net operating income.
By applying these tips to prepare for winter, property owners and management companies can help ensure the safety and security of their residents, employees, and visitors during the colder months and improve resident retention.
To learn more about security for multifamily residential properties, check out this free guide on monetizing security while balancing access, safety, and profitability. To learn more about remote video surveillance and access control systems, please contact us.
