Getting from Barely Open to New-Normal Open
Summary
Reopening multi-family properties is a challenge and an opportunity. A unified strategy ensures the best possible outcomes. More worrisome, a haphazard strategy or no strategy at all will encourage others to impose rules. Therefore, build on the recommendations of our industry leaders. Do not wait. Deploy a three-phased approach to reopening multi-family properties. Get started now.
Situation
Multi-Family communities are emerging from quarantine’s dark days. Residents are looking for a return to normal life. They are willing to embrace a new normal. However, many have had enough of extreme isolation.
The COVID-19 curves are flattening. Most states are re-opening. All across the country, multi-family communities are welcoming the cleansing summer suns. With the hope that the worst is behind us, renters want their gyms, pools, and common areas.
Challenges
We are seeing widely differing strategies for reopening multi-family properties. Some property managers favor full and immediate reopening. But, others want to wait-and-see. Some communicate regularly with renters. However, others communicate nothing but amenities closures. There is a lot of confusion about what to do.
Above all, human history tells us that COVID-19 is with us for forever. It is going to continue to do its thing until we reach herd immunity. The scientists do not know if there will be a cure or if it will be like the flu. In other words, there is no certainty that even a vaccine will do more than slow down the impact. Regardless, herd immunity means 250 million to 300 million U.S. citizens who are immune to the disease. We have a long way to go before this is over. We need a lot of vaccine doses or survivors with anti-bodies.
Questions
There are a few core questions that we the multi-family industry wants to answer. How do we:
- Keep our residents safe
- Keep our employees safe
- Preserve our rent rolls
- Maintain sufficient cash-flow in the new normal
- Avoid negative headline risk
Answers: IREM’s Report
The Institute of Real Estate Management (IREM) has released advice on how Property Managers might reopen. The report emphasizes five key points:
- Follow public health guidelines
- If tempted to deviate from public health guidelines, refer to #1
- Communicate (staff and residents)
- Prepare
- Be flexible
This is good advice and we recommend reading the full report.
But, the advice is built on an assumption that public health guidelines exist. The federal government is restricting its guidelines. OSHA points to increased risk. However, OSHA is not providing reliable recommendations. Lawyers are starting class-action lawsuits. States and municipalities lurch from one policy change to the next. Therefore, following public health guidelines is only a partial answer.
Answers: Take Control Now
Owners and managers should be in control of reopening multi-family properties. In other words, the multi-family industry should build shared, tactical plans based on IREM advice. The industry can take control of its own destiny. If we act, we can develop an optimal approach. Waiting for others could be further damaging to the multi-family business.
Answers: Three Phases
Reopening multi-family properties can borrow from the three-phased reopening supported by many governmental agencies. This program will reassure, inform, and direct residents. You will help residents behave as individuals and a community. Management will reassure, inform, and direct employees. With planning, consistent communications will help set the guidelines that will identify how they can stay safe.
It is going to take a village when reopening multi-family properties. Most importantly, clear expectations of residents and staff make your properties safer, more enjoyable, and more attractive.
Answers: Tactical Plans
Here is an example of a strategy template for one of our Multi-Family customers.
Reopening Multi-Family Properties
| Asset | Phase 1 – Partially Open | Phase 2 – Mostly Open | Phase 3 – Completely Open (New Normal) |
|---|---|---|---|
| Leasing Office | • Limited access signage • Spacing decals • One-way travel lanes • Workforce PPE – Guards, Sanitizer • By appointment | • Limited access signage • Spacing decals • One-way travel lanes • Workforce PPE – Guards, Sanitizer | • Distancing signage • Spacing decals • Workforce PPE – Guards, Sanitizer |
| Leasing Office | • 50% equipment closed • Shielded 6’ x 10’ spaces • By appointment • Usage waiver | • 50% equipment closed • 6’ spacing (no shields) • By appointment • Usage waiver | • Distancing signage • Usage waiver |
| Pool | • Water closed • 50% chairs closed • 6’ spacing • By appointment • Usage waiver | • Water closed • 50% chairs closed • 6’ spacing • By appointment • Usage waiver | • Distancing signage • Usage waiver |
| Common Area | • Closed | • Limited access signage • Spacing decals • One-way travel lanes • Workforce PPE – Guards, Sanitizer | • Distancing signage • Open |
| Post Boxes | • Limited access signage • Spacing decals • One-way travel lanes | • Limited access signage • Spacing decals • One-way travel lanes | • Distancing signage • Spacing decals |
| Apartment Maintenance | • Emergency only • Workforce PPE | • Emergency and scheduled • Workforce PPE | • Emergency and scheduled • Contractors permitted • Workforce PPE |
| New Amenities | • Food lockers • Sanitizer supplies • Mask supplies | • Food lockers • Sanitizer supplies • Mask supplies | • Food lockers • Sanitizer supplies • Mask supplies |
Each item listed has a corresponding resident and staff training, communications, and execution plan. These are day-by-day plans that detail how communities will adjust. As IREM suggests, “Communicate” and “Prepare”.
Never letting a good crisis go to waste. COVID-19 also allows progressive property owners opportunities to differentiate. There is demand for parcel and food lockers. Parcel lockers offer a place to safely “quarantine” incoming goods. Food lockers with true refrigeration and freezer options should become a staple of communities with higher-aged populations. These residents are likely to be social distancing for months if not a year or more.
Conclusion
IREM’s point five, “Be flexible”, may be the hardest piece of advice to follow. There is a high likelihood that COVID-19 will strike our communities in waves dictated by weather, human behavior, and other unpredictable factors. Being flexible in the plans that we have developed means a few things:
- Messaging should adapt
- Policies may loosen only to re-tighten
- Resident and employees should be working in concert
So, develop your strategy for multi-family property reopening. Get ahead of the politicians and reassure, inform, and direct your residents. They will thank you by staying and paying.