Centralization quickly became one of the biggest post-pandemic buzzwords in the multifamily industry, but explaining it can be a challenge. That's because it can mean different things to different organizations and can be implemented in a multitude of ways.

According to Forbes, centralized leasing relates to "any effort to move away from individual property-based leasing and operational teams and centralize them in one or multiple regional locations to improve efficiencies and cut down costs."

While longstanding multifamily concepts such as call centers qualify under that bucket, most new-school centralization focuses upon efficiencies either learned or necessitated by the pandemic. For instance, many organizations were forced to use centralized maintenance teams in the contactless environment and then realized the model had the potential to be effective moving forward.

Typically, a move to centralization is spurred by pain points within existing operating procedures, often in the form of limited staffing. Constricted staff often creates a two-pronged challenge—resident service takes a step back and the well-being of onsite teams suffers due to an overload of responsibilities.

Operators experiencing anything of the sort might consider centralizing certain services, such as leasing. Some have moved the roles of assistant property manager, accounting personnel, maintenance supervisor and others to centralized locations. This can help bolster customer service and create a balanced work environment.

Some operators have discovered that it's not only difficult to find onsite team members in the current multifamily landscape—it also can be overwhelming to the community budget due to the need to offer a competitive salary. Centralized leasing programs can reduce these costs—and other operational expenses—without compromising the product.

One sign that centralization could be a solid fit for an organization is when it has clusters of communities within close proximity. If you have four communities within a 40-mile radius, centralization could be effective for service-centric roles that still require some onsite presence. If you have one community in Minneapolis and the nearest sister property is in Albuquerque, that scenario probably won't work. That said, the proximity typically doesn't matter for many leasing-related processes.

Anecdotally, my company began a centralized leasing program in 2022. Our centralized leasing specialists support our property teams by answering calls, setting tour appointments, conducting follow-ups and marketing the community. By offering a centralized leasing option, we provide a more robust customer experience with greater service and more information for prospects. We've increased the lead-to-lease closing ratios in the process.

By absorbing a large portion of prospect calls, centralized leasing offers onsite teams the opportunity to maintain focus on residents and the community at large. It has created a mellower, more efficient work environment and the reaction from the onsite teams has been tremendously positive. It has been an enormous success.

When you consider a centralized platform for your organization, it's important to observe your specific needs and challenges, and then create the platform from there. Reach out to other companies that have successfully implemented some form of centralization but know that what works for them may differ from what works for you. Take inventory of the immediate changes it will present for current associates and write a business plan for the new platform.

Perhaps most important in the transition to centralization is to hire the right people. An onsite leasing associate might differ from what you need in a centralized leasing employee. Find someone who is flexible and willing to work through a new program as it morphs into what your company needs.

Additionally, finding the proptech that best fits the program is paramount. A particular software platform might not necessarily work best for centralized leasing, so allow the time to find which tech you want to adopt, properly vet it and become an expert with its nuances.

Lastly, while considering the totality of a potential move to centralization, think about the entirety of the journey for your prospects. That remains a multifamily organization's key mission, so make certain that any changes don't negatively impact the journey.

Sure, centralization remains a buzzword and might not apply to many operators. But for those it does, it can set the blueprint for the future of the organization.