An interesting phenomenon is starting in the New York apartment business. Some multi-property owners are using consistent branding for their various properties. The idea is to model how hotels operate so customer awareness, preference and loyalty can be achieved using a single brand name. For example, New York based Common has branded its co-living spaces throughout the city. Every location has similar units and amenities, and now the same brand name.
This might be a response to recent vacancy problems reported in the city of New York. According to listing tracker Streeteasy, 42% of New York rentals in October 2016 had reduced prices or “free month” offers for signing a lease. This situation contrasts sharply with the rest of the country where vacancy rates are at all-time lows.
A brand means standard features and benefits across all products and services. Since every single-family residence is unique and cannot be made to meet a set of fixed specifications, it is virtually impossible to have a common brand. However, if the rental is managed in a similar way with others, there is common ground, and having the same property management company could have a branding effect.
Would tenants be more likely to rent from properties managed by a specific management company? We believe they would if the reputation of that property manager is solid. That’s why Real Property Management is working to elevate property management standards. Our goal is to make the properties we manage preferred over properties managed by others. By doing so, we can rent properties faster, keep tenants longer, and make our property investor clients more money.