Insights from Adrian Danila on Centralization in Multifamily Maintenance
At the Blueprint 2024 conference in Las Vegas, I had the chance to sit down with Adrian Danila, a veteran in the multifamily facilities sector, to dig deep into the topic of centralization in repairs and maintenance (R&M) for multifamily housing. Adrian’s two decades of experience in the field give him a unique perspective on the challenges and opportunities that come with centralizing property management operations. Our discussion revealed the core issues operators face when considering centralization and how they can make informed decisions moving forward.The Current State of Centralization
“Everybody’s defining it differently based on their needs, the size of the portfolio, and their footprint.” - AdrianCentralization in the multifamily space is far from a one-size-fits-all solution. Adrian emphasized that the way operators approach centralization varies. Some operators, particularly those with smaller portfolios in close geographic proximity, can implement centralized maintenance more easily. For larger portfolios, the process becomes far more complex, requiring careful planning and logistical solutions.This aligns with findings from Multifamily Dive, which highlights that centralization often requires customized strategies depending on the density and geographic spread of a portfolio. Operators with tighter clusters of properties are better positioned to achieve efficiency gains through centralization.Key Takeaway: Before diving into centralization, you need to assess the aspects of your portfolio. If your properties are tightly clustered, centralization can save time and resources. But if your assets are spread out across several areas, you might face significant hurdles in travel and efficiency.The Challenges of Centralization
“Travel time is like the biggest challenge in operations. Time that our teams are spending traveling is time they’re not working.” - AdrianMaintenance teams often spend hours traveling between properties, resulting in wasted time that could be better spent addressing service requests. This not only impacts productivity but also extends response times for residents, leading to dissatisfaction and lower retention.Adrian’s frustration echoed sentiments from industry leaders who have explored maintenance triage and centralized service pods. Buckingham Companies, for example, implemented maintenance pods serving properties within a 10-mile radius to reduce travel time and improve efficiency. Yet, travel remains a major barrier for larger portfolios spread across wider areas.Key Takeaway: Travel time is a hidden cost that often gets overlooked in the rush to centralize. Efficient logistics and thoughtful scheduling are crucial to making centralization work, particularly for portfolios with wide geographic distribution.When Centralization Works
“If you have apartment communities within one or two miles of each other, then you could definitely look into centralization because it reduces travel time.” - AdrianThere are instances where centralization has been highly effective, but these tend to be smaller operators with properties located within a tight radius. For these companies, centralization reduces travel time, increases maintenance efficiency, and ultimately enhances the resident experience.For example, the use of centralized maintenance pods, supported by routing technology, has proven to reduce response times and improve resource allocation. However, success often hinges on the proximity of the properties and the ability to optimize service routes effectively.Key Takeaway: When considering centralization, geography is everything. Centralization makes sense when properties are located close to one another, allowing for streamlined operations. For larger portfolios, a hybrid approach might work better, with local teams handling certain properties while centralizing others.The Future of Property Management: Automation and Outsourcing
“Automation, centralization, outsourcing—these are the trends driving the future of multifamily property management.” - AdrianOur conversation naturally shifted to the future of the industry, where Adrian sees a growing reliance on technology and outsourcing. He pointed out that companies are already using technology to streamline maintenance tasks, from smart locks to digital maintenance request systems. However, as noted in the HappyCo Centralization Guide, integrating automation and outsourcing effectively requires a clear strategy and strong change management to avoid operational chaos.Adrian’s advice mirrored insights from industry leaders: “Before you think about centralizing, look at running things efficiently first.” Rushing into centralization without optimizing current operations often results in more problems than solutions.Key Takeaway: Don’t centralize for the sake of it. Start by fine-tuning your existing processes. Use technology and outsourcing to increase efficiency. Only after you’ve streamlined your operations should you think about centralizing your maintenance functions.Balancing Cost, Efficiency, and Resident Experience
“Reducing costs is always important, but don’t sacrifice the resident experience to do it.” - AdrianAdrian brought up a critical tension that every operator faces: cutting costs while maintaining high service standards. This is particularly relevant in today’s competitive market, where dissatisfied residents can quickly lead to higher turnover and lower occupancy rates.Operators like Camden Property Trust have managed to balance these priorities by centralizing administrative tasks, resulting in $4 million in annual savings without compromising resident satisfaction. However, as Adrian pointed out, these strategies must be implemented with care to avoid alienating residents.Key Takeaway: Centralization can help reduce costs, but it’s important to strike the right balance. Cutting corners in areas that directly impact the resident experience can backfire. Aim for operational efficiency that doesn’t compromise on service quality.Final Thoughts: Centralization Is a Tool, Not the Goal
In closing, our conversation reaffirmed that centralization, while promising, should not be seen as the ultimate goal. Instead, it’s one of several tools operators can use to run a more efficient and cost-effective business.Adrian’s perspective aligns with broader industry insights, such as those shared by Multifamily Dive, which caution against centralization without a solid foundation of efficient local operations.Key Takeaway: Centralization is a powerful tool, but it’s not a cure-all. Success depends on understanding your unique portfolio, improving efficiency first, and balancing cost savings with resident satisfaction.Our mission is to simplify the homeowners & home builders customer experience. Let Iris do the work.
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