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UDR plans to expand the number of properties that won't be run by on-site staff and use more technology to help make its buildings more cost-efficient.
The Denver-based multifamily REIT has 30 properties across its portfolio that are unstaffed, and it plans to expand that up to 35 or 40 this year, Multifamily Dive reported. The latest push will focus on making maintenance and repair more efficient.
“We’re putting in place some technology as it relates to maintenance,” said Mike Lacy, senior vice president of operations at UDR, on the company's Q4 earnings call. “We think we can compress our days vacant on the turn side. We think [repair and maintenance] will be benefiting from that.”
Last year, Lacy said the "self-service" model the firm had adopted reduced its employee headcount at properties by 40%. At that time, the firm was planning to roll out a new version of its platform that would reduce the number of days apartments stayed empty by encouraging prospects to sign leases and drive rent increases.
These steps to minimize operating costs also go hand in hand with prioritizing rent growth, which has also benefited from software to enhance revenues on a per-property basis, Bisnow previously reported in November.
UDR isn't the only publicly traded apartment owner that has been swapping out human staff for virtual ones. Equity Residential and Essex Property Trust have also used automation to handle certain property management duties to make buildings more efficient while helping grow revenue.
Although UDR made progress in automating and centralizing parts of its business, the firm's expenses rose 6.8% year-over-year due to general maintenance and administration costs, according to the firm's Q4 earnings report.
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