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 surrounded the core issues operators face when considering centralization, and how they can make informed decisions moving forward.Here’s what we discussed, along with views that could shape the future of property management.
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. he 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.
As multifamily portfolios grow in size and geographic spread, the ability to centralize becomes increasingly challenging. In some cases, operators might find that what works for one company in one region won’t translate effectively across the board.
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 shared his frustration: “You lump all the service requests into one trip, but if you’re a resident waiting for your issue to be solved, you’re stuck in downtime, and that can seriously affect your ratings.”Centralization might solve some operational issues, but it can also introduce new pain points, particularly when residents feel neglected.Key Takeaway: Travel time is a hidden cost that often gets overlooked in the rush to centralize. The challenge is especially apparent in larger portfolios where properties are scattered across wide areas. Efficient logistics and thoughtful scheduling are crucial to making centralization work.Where 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 experienceOne of Adrian’s key points was that, for many companies, centralization works best when combined with other strategies like outsourcing and automation. By focusing on efficiency first and centralizing only where it makes sense, operators can reap the benefits of a streamlined approach without overextending their teams.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.” - Adrian
Our 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 keyless entry systems to digital maintenance request systems. However, Adrian was quick to note that technology is only part of the solution. Operators need to make sure that their current processes are efficient before they invest heavily in centralization.“Before you think about centralizing, look at running things efficiently first.” - AdrianHe shared a common pitfall: operators often rush into centralization without optimizing their current operations. The result? More chaos rather than less.“Before you hand it off, you have to make sure it’s running smoothly. If it’s not working at a local level, centralizing it won’t magically make it better.”This insight resonated with me because so often, the allure of centralization overshadows the need for operational efficiency. The rush to centralize can lead to cutting corners and skipping over the foundational steps needed to make a system truly scalable. According to Adrian, focusing on outsourcing some tasks and automating others should come before centralization.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.” - Adrian
Adrian brought up a critical tension that every operator faces: cutting costs while maintaining high service standards. With rising interest rates, stagnant rents, and increased competition, operators are under pressure to find savings wherever they can. Centralization can reduce costs, but at what price?He acknowledged the difficult trade-offs operators face: “Some owners are so focused on surviving and not losing their properties that resident experience sometimes takes a back seat. And that’s dangerous long term.”Adrian’s perspective was balanced, recognizing that while cost-cutting is necessary, it shouldn’t come at the expense of the resident experience. After all, in today’s competitive market, unhappy residents can quickly lead to higher turnover, lower occupancy rates, and ultimately a weaker bottom line.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 Strategy, Not the GoalOur 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.“Don’t hang a picture with a sledgehammer.” His point was clear—centralization isn’t the answer to every problem, and rushing into it without careful planning and groundwork can cause more harm than good. For larger portfolios, focusing on automation, outsourcing, and local efficiency should come first, with centralization as a final step when it truly makes sense.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.Wrap up:Adrian made one thing clear: centralization is not a one-size-fits-all strategy. It can yield significant benefits for some operators, but it requires careful consideration, planning, and a willingness to adapt. For companies exploring centralization, the advice is simple: start by looking at your existing operations and focus on efficiency. Once that foundation is solid, centralization may be the logical next step.The future of property management will likely involve more automation, outsourcing, and yes, centralization—but it should always be driven by the unique needs of your business and the people who live in your communities.Live Podcast: https://www.linkedin.com/events/livefromblueprint2024invegas7241594096295821312/comments/
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. he 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.
As multifamily portfolios grow in size and geographic spread, the ability to centralize becomes increasingly challenging. In some cases, operators might find that what works for one company in one region won’t translate effectively across the board.
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 shared his frustration: “You lump all the service requests into one trip, but if you’re a resident waiting for your issue to be solved, you’re stuck in downtime, and that can seriously affect your ratings.”Centralization might solve some operational issues, but it can also introduce new pain points, particularly when residents feel neglected.Key Takeaway: Travel time is a hidden cost that often gets overlooked in the rush to centralize. The challenge is especially apparent in larger portfolios where properties are scattered across wide areas. Efficient logistics and thoughtful scheduling are crucial to making centralization work.Where 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 experienceOne of Adrian’s key points was that, for many companies, centralization works best when combined with other strategies like outsourcing and automation. By focusing on efficiency first and centralizing only where it makes sense, operators can reap the benefits of a streamlined approach without overextending their teams.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.” - Adrian
Our 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 keyless entry systems to digital maintenance request systems. However, Adrian was quick to note that technology is only part of the solution. Operators need to make sure that their current processes are efficient before they invest heavily in centralization.“Before you think about centralizing, look at running things efficiently first.” - AdrianHe shared a common pitfall: operators often rush into centralization without optimizing their current operations. The result? More chaos rather than less.“Before you hand it off, you have to make sure it’s running smoothly. If it’s not working at a local level, centralizing it won’t magically make it better.”This insight resonated with me because so often, the allure of centralization overshadows the need for operational efficiency. The rush to centralize can lead to cutting corners and skipping over the foundational steps needed to make a system truly scalable. According to Adrian, focusing on outsourcing some tasks and automating others should come before centralization.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.” - Adrian
Adrian brought up a critical tension that every operator faces: cutting costs while maintaining high service standards. With rising interest rates, stagnant rents, and increased competition, operators are under pressure to find savings wherever they can. Centralization can reduce costs, but at what price?He acknowledged the difficult trade-offs operators face: “Some owners are so focused on surviving and not losing their properties that resident experience sometimes takes a back seat. And that’s dangerous long term.”Adrian’s perspective was balanced, recognizing that while cost-cutting is necessary, it shouldn’t come at the expense of the resident experience. After all, in today’s competitive market, unhappy residents can quickly lead to higher turnover, lower occupancy rates, and ultimately a weaker bottom line.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 Strategy, Not the GoalOur 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.“Don’t hang a picture with a sledgehammer.” His point was clear—centralization isn’t the answer to every problem, and rushing into it without careful planning and groundwork can cause more harm than good. For larger portfolios, focusing on automation, outsourcing, and local efficiency should come first, with centralization as a final step when it truly makes sense.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.Wrap up:Adrian made one thing clear: centralization is not a one-size-fits-all strategy. It can yield significant benefits for some operators, but it requires careful consideration, planning, and a willingness to adapt. For companies exploring centralization, the advice is simple: start by looking at your existing operations and focus on efficiency. Once that foundation is solid, centralization may be the logical next step.The future of property management will likely involve more automation, outsourcing, and yes, centralization—but it should always be driven by the unique needs of your business and the people who live in your communities.Live Podcast: https://www.linkedin.com/events/livefromblueprint2024invegas7241594096295821312/comments/
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