Renters expect the home experience to mirror their tech-savvy, convenience-driven lifestyle. They seek out apartments that offer higher levels of service and convenience. As margins continue to be tight, multifamily is leaning on the power of outsourcing to provide an elevated service level and not burden onsite teams.

Outsourcing has emerged as a powerful tool for owners and operators to streamline operations, reduce costs and gain a competitive edge. Leveraging the expertise and resources of third-party service providers allows businesses to focus on core competencies while delegating time-consuming tasks to focused specialists. This strategic approach not only enhances efficiency but also enhances the resident experience, enabling companies to stay ahead of the competition.

Third-party, offsite solution providers have the luxury of tapping into a wider pool of talent and resources, giving owners and operators access to specialized skills and cutting-edge technologies that would be too expensive to maintain in-house. This flexibility allows companies to better control costs by scaling up or down as needed, responding swiftly to market demands.

Focus on Four Areas to Master Outsourcing

Mastering the art of outsourcing requires a well-crafted strategy and a deep understanding of its intricacies. By addressing the risks and potential challenges, operators can strategically plan and implement this powerful tool. There are four areas of focus that can help make outsourcing outstanding:

Core Competencies - Identify the core competencies of your property management team and assess which non-core functions could be outsourced. This could include maintenance, landscaping, package management, parking management, security, janitorial services and call center operations. Outsourcing these tasks can allow your team to focus on fostering relationships with current residents and welcoming prospects to the community.

It's impossible to divorce people completely from managing properties and that shouldn't be the goal. Regardless of technological advances in the industry, apartment hunters still prefer some human interaction before deciding. Outsourcing allows for mundane tasks to be completed, so human interactions can be directed where they're most effective. Explore technology that will complement your teams and everyday operations.

Cost Efficiency - Analyze the cost implications of outsourcing versus in-house provision. Outsourcing should lead to cost savings without compromising service quality. It's essential to consider not just the immediate costs but also the long-term financial impacts, including the flexibility to scale services as needed. By outsourcing non-core functions to third-party providers, businesses can reduce overhead costs associated with hiring, training and staffing for specific tasks.

Sometimes outsourcing will appear cost-effective initially but may have hidden costs such as vendor management and transition. Make sure to work with a fully transparent partner, which allows for accurate and thorough cost-benefit analysis. In addition, establishing clear service-level agreements (SLA) can help mitigate these risks.

Quality of Service - This is a critical area to maintain because one of the problems with outsourcing is that communities may carry a share of — or all of — the blame for failures on the part of vendors. Ensure that the quality of service meets or exceeds current standards. This involves vetting potential contractors' credentials, references and track records. Consistency in service delivery is key to resident satisfaction and retention. Sharing sensitive data or intellectual property with external parties can raise concerns about privacy. Businesses should examine cybersecurity measures and compliance with relevant data protection regulations as part of this screening process.

Outsourcing processes to a third-party provider may result in a perceived loss of control but careful vendor selection, clear communication of expectations and robust monitoring can help to maintain quality standards.

Integration with Existing Operations - The outsourced services must integrate seamlessly with your existing operations. This includes the alignment of technological systems, operational processes and company culture. Smooth integration helps in maintaining operational flow and managing resident expectations.

Making Life Easier for Residents

Cutting-edge technology has become a crucial differentiator in the multifamily market, as residents increasingly seek communities that offer seamless integration of smart features and amenities. These solutions not only absorb daily tasks but also provide more convenience and comfort, elevating the overall living experience. By embracing this direction toward outsourcing and tech, multifamily communities can cultivate an environment that not only meets but exceeds the expectations of modern residents.

In the age of e-commerce and on-demand services, efficient package management has become a crucial aspect of modern living. Multifamily communities are recognizing the importance of providing seamless and secure delivery solutions. Resident-controlled deliveries empower them to manage incoming packages and deliveries on their own terms. One of the most popular approaches to this is third-party, offsite delivery providers, which allow for full control but circumvent many of the issues with other package management solutions.