The biggest problem in multifamily real estate is not the pandemic, rent abatement or vacancies. From my perspective, it’s employee turnover — a problem that is being exacerbated by the Great Resignation.
As the co-founder of an operations and maintenance platform for apartments, I’m observing that managing multifamily properties has become even more challenging with many tenants now working from home, which can increase the physical wear and tear on the property and the strain on front-office workers if teams are short-staffed. It’s vital to the bottom line of a multifamily company to have knowledgeable staff who can keep up with increased demands while maintaining property oversight.
Employee turnover impacts every level of a business, and this is especially true for the commercial real estate industry. “The cost of replacing an individual employee can range from one-half to two times the employee’s annual salary — and that’s a conservative estimate,” Gallup reported. These costs might include recruiting activities, training programs and missing time. However, there are many more issues specific to apartments that can be associated with turnover, such as property maintenance missed, code compliance issues and tenant management.
Read the full article: How Commercial Real Estate Leaders Can Navigate The Great Resignation
