NEW SEASON, NEW GROWTH
Excitement is building around SmartRent HQ. There’s electricity in the air, and it’s not just the dry Arizona climate. Change is coming, and we can’t wait.
We’re seeing the first few signals of rent growth again after long stagnation. Community managers focusing on long-term cost savings will have a leg up on those who put energy into short-term revenue boosts. If you haven’t taken cost-saving measures lately, consider doing so now.
We’re also pumped for Apartmentalize 2024. Not only is it the industry’s biggest event, but we’ve been working on some surprises for our customers. We can’t wait to see you there!
FEATURED STORIES
What are Smart Apartments?
We break down this tech that boosts NOI and attracts residents.
How to Choose a Smart Apartment Provider
Consider the hub vs. no-hub debate and compatibility.
Is Smart Access Control Worth It?
Ponder the pros and cons of smart, community-wide access control.
Proptech Scales Up
See which technologies are becoming more common in multifamily.
PROPTECH TRENDS
The annual rental rate is down, though a few markets in some of the highest-cost metros continue to grow. But things could be looking up. Net Effective Rent has increased at a near-consistent rate of about 10 basis points for several weeks, which could be an early sign that rental rates will begin growing again soon.
Here are two indications that suggest it’s possible:
Blackstone’s consolidations signal confidence
Blackstone is set to buy AIR Communities in a $10 billion deal that would take the 76-community portfolio private in Q3. With more than 27,000 units across 10 states, it’ll be Blackstone’s largest apartment deal to date.
Earlier this year, Blackstone acquired Tricon Residential, a Toronto-based company with apartment communities and single-family rental homes in high-growth markets like Atlanta, Dallas, and Phoenix. This $3.5 billion deal represents a huge growth opportunity. Tricon has about 2,500 homes currently under development and land that could support 21,000 more.
Blackstone’s investments could signal confidence in upcoming relief from high interest rates and stagnant rental rates. We’ll keep an eye on this development.
Rental rates squeak up
By the end of March, average rent rates across the nation were down 1.5% year-over-year. While that sounds grim, they’ve been slowly rising and sit at 1.4% down as of April 30. Although the first week of May saw a drop in rental rates, experts see this as a small blip amid an overall positive trend.
Given that moving season is around the corner, we think we’ll keep seeing improvements for at least the next few months. While it might be too soon to break out the champagne, investments in cost-saving measures are always a prudent way to boost NOI—and we still recommend them over most rent-boosting investments for now.
Looking for a fresh event idea for residents?
Take it from a resident engagement pro: Help people polish their LinkedIn profiles! Jude Chiy, Founder of Flamingo Resident Retention Platform, saw more than 10x attendance for an event that gave residents fresh professional headshots!
SmartRent Essentials Package
Get smart. Get savings. Get started - with no upfront costs and only $18 per unit per month.
The terms of financing are contingent upon various factors including credit history and down payment. Defaults on agreements, considered loans, may result in default and subsequent legal actions. Additional terms and conditions may apply. Offer valid for purchases by June 30, 2024, installation by December 31, 2024. Delayed installation may result in pricing changes or restocking fees.
JOIN US AT APARTMENTALIZE
The National Apartment Association (NAA) will host its annual Apartmentalize event June 19–21 in Philadelphia—and we wouldn’t miss it for the world.
We started SmartRent to simplify the rental industry with purpose-built smart tech that makes homes more convenient and workplaces more efficient.
Come see SmartRent at Apartmentalize Booth #929 and let us help you operate smarter.
Omnichannel client engagement | Nextiva UCXM
5moIt's great to see such excitement and innovation at SmartRent HQ! Long-term cost savings are indeed crucial for sustainable growth. Looking forward to seeing the new surprises at Apartmentalize 2024 —sounds like it will be an amazing event!