Introduction:
In today’s shifting property management landscape, the difference between a short-term, cut-rate approach and a quality-driven, long-term investment model has become more apparent than ever. We’ve always believed in a strategy focused on premium property conditions, top-tier service, and engaged ownership. That approach has paid off. As the industry evolves, the “Motel 6” model—one that relies on underinvestment and quick gains—is visibly struggling, while our “Marriott” strategy—prioritizing quality over discounts—is thriving. Here’s how our prediction has played out and why it matters. (See our forecast from 18 months ago)
Refining Our Client Base:
In early 2022, we made the strategic decision to part ways with owners who refused to invest in their properties or support resident satisfaction. This wasn’t just a risk, it was a deliberate pivot. By doing so, we raised the standards for new clients and focused on retaining those who recognize the value of maintaining well-cared-for homes and fostering strong resident relationships. The result is a leaner but far healthier portfolio of properties and partnerships that are built for long-term success rather than quick, short-sighted wins.
Elevating Property Standards:
The property management industry now faces the consequences of neglect. Homes that haven’t been properly maintained are showing their wear and tear. Many in the discount end of the market are exiting the business altogether, affirming the wisdom of our strategy. When comparing the Motel 6 approach—bare-bones, cut-rate standards that lead to higher turnover and costly resident issues—with the Marriott approach—ongoing investments that lead to resident satisfaction and reliable, stable returns—the difference becomes painfully clear.
Building a High-Performance Team:
We’ve also refined our internal team, ensuring that each staff member is fully aligned with our quality-first philosophy. While staff changes can be challenging, these realignments have allowed us to create a team culture focused on delivering long-term value to our owners and residents. This approach ensures that even in high-interest-rate environments and shifting markets, we remain disciplined, high-performing, and committed to consistent results.
The Quid Pro Quo of Resident Satisfaction:
The market is increasingly rewarding owners and managers who invest in their residents’ comfort. Homes in poor condition might attract a short-term resident seeking a deal, but over the course of five years, that strategy often backfires—evictions, high turnover costs, and major repairs eat away at any initial savings. By contrast, when residents feel valued, they think twice before disrupting a favorable living situation. Our Marriott-style approach, ensuring each property is maintained to high standards, creates a stable resident base that’s more likely to stay put, pay on time, and keep the property in good shape.
Why This Matters Now:
The industry as a whole has caught up to the pressures we identified early. Headlines about homes falling into disrepair and the difficulties of maintaining profitability in a discount model confirm what we’ve long understood: quality is the key. With the economy continuing to test old models, our Marriott-style strategy is well-positioned to outperform less rigorous approaches.
Conclusion: Delivering Sustainable, Long-Term Results:
As we step into the crucial upcoming 18 months, our decision to operate more like a Marriott than a Motel 6 stands as a clear advantage. We’ve built a moat around our “castle” of quality owners, happy residents, and dedicated managers. This moat insulates against market volatility and positions us to weather economic shifts without sacrificing resident satisfaction or property value. In short, our quality-focused strategy is the clear, long-term winner—today, tomorrow, and well into the future.
