People-Centric Strategies in Multifamily Management
Come check out Jim Mitchell, the vice president of facilities for Centerspace, as he joins us in this episode. Jim brings a wealth of experience and insights into the multifamily industry, making him a valuable guest for our discussion.
Part One: Insights from Jim Mitchell
Jim's Multifamily Journey
Jim shares his journey, which began in the construction industry before transitioning into multifamily property management in 2005. Reflecting on his entry into the multifamily realm, Jim acknowledges the familiar narrative of professionals stumbling into this industry, often unaware of its existence as a career path. He recounts his pivotal role in a substantial rehab project involving remodeling a thousand occupied senior housing apartments within a tight timeframe. Jim highlights the challenges and uncertainties he faced during this endeavor.
From his construction background, Jim found a seamless fit in multifamily, appreciating its stability compared to the volatility of the construction sector. He discusses the impact of economic factors like interest rates on both industries, emphasizing multifamily's resilience in weathering economic fluctuations.
Developing Maintenance Leaders
Regarding the development of maintenance leaders in multifamily, Jim identifies resource management as the cornerstone skill for transitioning into leadership roles. He elaborates on the multifaceted nature of resource management, encompassing aspects such as time management, team coordination, and financial stewardship. Jim offers practical strategies for optimizing resource utilization, emphasizing the importance of proactive planning and efficient inventory management in maintaining operational efficiency.
Overview of Centerspace
Jim provides insights into Centerspace, a publicly traded company specializing in multifamily properties. He outlines the company's evolution from third-party management to owning and managing its properties, emphasizing its core focus on multifamily assets. Jim also touches upon Centerspace's transition to a pure multifamily REIT and its current portfolio composition.
Recruiting Talent for Maintenance Teams
Lastly, Jim discusses the challenges of recruiting talent for maintenance teams in the multifamily industry. He acknowledges the industry-wide struggle to attract skilled personnel and highlights the importance of company reputation and involvement in industry associations in enhancing recruitment efforts.
Part Two: Cultivating Maintenance Leaders
Recruiting Talent for Maintenance Teams
Recruiting skilled talent for maintenance teams in the multifamily industry remains a significant challenge. Jim sheds light on various recruitment strategies employed by Centerspace, emphasizing the importance of a strong company reputation and involvement in industry associations. He mentions participation in programs like the Denver Apartment Association's apprenticeship program, providing aspiring technicians with practical experience and the opportunity to earn industry certifications. Despite the competition from other industries like construction, Jim remains optimistic about attracting talent to the multifamily sector.
Skills Development and Leadership Cultivation
Jim emphasizes the importance of leveraging existing leaders to cultivate maintenance leadership. At Centerspace, the Council of Service Advisors is crucial to mentoring and training newer team members. He highlights the value of stretch assignments and opportunities for hands-on experience in diverse projects, citing examples like regional snow removal contracts and company-wide presentations. Jim's approach underscores the significance of investing in employee growth and providing avenues for career advancement.
Defining Career Paths
Addressing career progression in the multifamily industry, Jim acknowledges the challenges of limited job opportunities in small companies. However, he emphasizes acknowledging employees' contributions and elevating their roles based on merit. Jim advocates for creating pathways for growth and recognizing employees' potential, even without formal positions. By offering stretch assignments and exposure to diverse projects, organizations can empower their teams to expand their skill sets and advance their careers within the company.
Transitioning from Reactive to Proactive Maintenance
One of the perennial challenges in the multifamily industry is transitioning from reactive to proactive maintenance practices. Jim advocates for a balanced approach that considers both cost-effectiveness and customer satisfaction. He shares a real-world example of preventive maintenance neglect resulting in increased service calls and customer dissatisfaction, underscoring the importance of proactive upkeep in preserving asset value and tenant satisfaction.
Part Three: Employee Retention and Training Initiatives
Employee Retention
Employee retention is critical to maintaining high-performing assets in the multifamily industry. Jim emphasizes investing in employees' growth and development to keep them engaged and motivated. Centerspace's Council of Service Advisors is pivotal in providing mentorship and training opportunities, serving as a platform for recognition and career advancement.
Jim acknowledges the competitive nature of the job market and highlights the need for transparency in addressing compensation adjustments to stay competitive. By offering opportunities for growth, such as stretch assignments and specialized training programs like boiler licensing, organizations can demonstrate their commitment to employee development and retention.
Trends in Maintenance Outsourcing
The multifamily industry is witnessing a trend toward outsourcing maintenance work akin to commercial building maintenance practices. Jim acknowledges this shift and attributes it to the growing talent shortage. With a deficit in skilled labor and increasing demand for maintenance services, companies are outsourcing jobs to supplement their in-house capabilities.
However, Jim emphasizes the irreplaceable value of in-house teams in fostering strong customer connections and delivering exceptional service. While some tasks may be outsourced for efficiency, maintaining a customer-centric culture requires the dedication and expertise of internal teams.
Part Four: Centralization in Multifamily Maintenance
Centralization in Maintenance
Centralization in multifamily maintenance has garnered attention as a potential strategy to streamline operations and enhance efficiency. Jim Mitchell shares his insights on the feasibility and implications of centralizing maintenance tasks within multifamily portfolios.
While centralization is less prevalent than in leasing and property management, Jim acknowledges its potential benefits, particularly in optimizing resource allocation and improving service delivery.
Harnessing Technology for Maintenance Optimization
Technology is crucial in driving operational excellence and cost savings in multifamily maintenance. Jim discusses the deployment of IoT (Internet of Things) technology across Centerspace's portfolio, including smart locks, leak sensors, and Wi-Fi thermostats. These IoT devices enable proactive maintenance by detecting problems like leaks and HVAC malfunctions before they escalate, thereby minimizing property damage and reducing insurance losses.
Part Five: Measuring Success
Key Performance Indicators (KPIs)
In the final segment of our discussion, Jim highlights key metrics for measuring maintenance team success, such as:
- Time to Turn Apartments: Measures efficiency in preparing vacant units.
- Cost per Turn and Square Foot Basis: Analyzes maintenance costs relative to unit size.
Closing Thoughts
Jim emphasizes that while technology and cost optimization are important, the true value lies in prioritizing people-centric strategies.
Connect with Jim Mitchell
For more insights, reach out to Jim at jrmitchell@centerspacehomes.com or connect on LinkedIn under his name.
We extend our gratitude to Jim Mitchell for sharing his invaluable expertise!