When it comes to multifamily investing, there are a number of options to consider. First, what type of property or properties best fit the investment strategy? The term “multifamily” covers a wide range of housing types, including single-family homes, duplexes, triplexes, fourplexes, townhomes, condominiums and apartments. 

From there, a multitude of other decisions follow, including whether an investor is interested in pursuing a multifamily property with an established brand or a standalone property without the support of a branded developer or property manager. 

When evaluating the advantages of partnering with a brand, it might help to remember these three Cs: 

Consistency 

No matter the company, product or service, a well-established brand is one that sets expectations, shapes perceptions and builds consumer loyalty. It does so by being consistent in its offering, steadfast in its values and relentless in its customer service. 

This notion of consistency is crucial for a multifamily brand to build trust with its residents, and it must manifest itself in a variety of ways starting at the very beginning of the leasing process. As such, a multifamily brand will likely have a very defined set of processes and procedures that provide a seamless experience throughout the entire resident journey. 

From a people perspective, employees become brand advocates. They are trained to provide a consistently high level of customer service and they are instilled with the same values that will guide their decisions and resident interactions. From a product standpoint, properties must mirror the same degree of quality and provide a reasonably predictable experience for both new and long-standing residents alike. Ownership also benefits from certain economies of scale that come with operating multiple locations. This could include savings on anything from construction costs, to ongoing labor and materials to service contracts.

When all the pieces work together, the result is a satisfied resident that becomes an invaluable flag carrier for the brand and its investors and a profitable asset that upholds its favorable reputation. 

Culture

Culture is an intangible yet powerful component of a strong brand. It is ultimately where the brand is born. It’s been said that a strong brand culture helps companies generate higher margins, drive customer advocacy, attract the right talent and forge key alliances. 

For multifamily brands, culture plays an important role in both the employee and resident experience, but its impact can reach even farther. It is part of the foundation to build long-term relationships. For example, perhaps the value of serving others through philanthropic efforts has been nurtured within the company’s culture. That in turn can directly benefit the communities where properties are located by way of volunteerism, fundraising, etc. The brand is then appreciated as a good corporate citizen and it entices other municipalities to welcome the brand to develop and expand within their communities. 

So, while potentially overlooked from an investment perspective, culture can be a key differentiator to consider when evaluating the potential profitability and longevity of an asset. 

Communication 

When investing in a multifamily asset, communication is key. It is a quality often championed by a brand that has the bandwidth and wherewithal to facilitate it effectively across channels. 

A dedicated investor relations team will help organize and control the flow of information between the company, the issuer and its investors and stakeholders. This team will offer an invaluable personal connection between the investor and brand, coordinate regular shareholder meetings, and manage the ongoing dissemination of financial data and reports, among other things. The brand may also invest in an electronic investor portal – a secure place to give financial partners 24/7 access to important documents, statements, reports, etc. 

For more than 30 years, Redwood has been building a brand committed to enriching the lives of those that choose to rent throughout suburban America. It does so by providing a remarkable living experience for residents, a fulfilling work life for team members, neighborhoods that communities welcome and outcomes that benefit financial partners. 

To connect with the Redwood Investor Relations team, call 216.360.9441 or fill out a contact form.