The multifamily housing sector has always been dynamic, with its own set of challenges and opportunities. In recent times, the industry has faced an additional hurdle – low occupancy rates. Following economic downturns, global pandemics, or other unforeseen circumstances like current supply and demand challenges, property managers find themselves grappling with the need to adapt to fluctuating demand. In such scenarios, the traditional staffing model may not be the most efficient or cost-effective solution. This is where staffing services come into play, offering a flexible and scalable alternative for multifamily properties.
Challenges of Low Occupancy
According to ALN Apartment Data, a three-year supply and demand misalignment is causing average occupancy rates to decline significantly. The strength of the new construction pipeline has led to 400,000+ more new units that have been delivered nationally than have been absorbed since the start of 2021. In October 2023, overall average occupancy dipped below 90% for the first time in more than five years, and new supply is not expected to significantly slow down until 2025. As a result, the pressure of low occupancy rates is primed to continue throughout this year.
Low occupancy rates bring forth a series of challenges for property managers. From revenue constraints to the strain on operational efficiency, maintaining a steady ship becomes a complex task. Traditional staffing models often involve fixed costs and may not be easily adjustable to match the variable demand seen during low occupancy periods. However, staffing services present an innovative approach to address these challenges head-on.
Staffing Services: A Solution for Flexibility
Cost-Efficiency: BGSF allows property managers to scale their workforce up or down based on immediate needs. This flexibility enables them to reduce costs during periods of low occupancy, preventing unnecessary expenses while maintaining the ability to ramp up quickly when demand increases.
Skill Match: Multifamily properties have diverse staffing needs, from maintenance and security to leasing and customer service. BGSF has a pool of skilled professionals who can be matched to specific roles, ensuring that the right expertise is available when needed.
Operational Agility: Low occupancy can create unpredictable spikes in demand for certain services. BGSF provides property managers with the agility to respond swiftly to maintenance requests, emergencies, or increased leasing inquiries without the challenges of maintaining a full-time staff during quieter periods.
Temporary Roles and Special Projects: BGSSF can also be utilized for specific projects, seasonal demands, or temporary roles. This versatility allows property managers to address unique challenges without committing to long-term employment contracts.
Enhanced Customer Experience: Maintaining a high level of service and responsiveness is crucial for resident satisfaction. BGSF enables property managers to ensure that the necessary personnel are available to meet resident needs promptly, even during periods of low occupancy.
Staffing for Success
In the ever-evolving landscape of multifamily housing, the ability to adapt quickly to changing circumstances is paramount. Staffing services emerge as a strategic solution for property managers navigating the challenges of low occupancy. By embracing flexibility, cost-efficiency, and expertise, multifamily properties can not only weather the storm but also position themselves for success in the long run. As the industry continues to evolve, the integration of staffing models may well become a cornerstone for resilient and dynamic property management strategies.
BGSF: Your Multifamily Staffing Partner
Dealing with low occupancy rates can significantly impact a property's budget, priorities, and capabilities. However, with a skilled team in place, when you need it, property managers can focus on delivering exceptional service, ultimately enhancing resident satisfaction and helping to attract new occupants. Contact us to request talent today!