NOI Value Creation Through Training!
Terri Norvell, Property Management Consultant

Let’s talk about the trend that’s sweeping through too many property management companies right now. Cutting back or cutting out training. Yes, training seems all too dispensable when budgets get tight.

As an industry, for too long now we’ve come to accept some myths about investing in training and development. You know what they are…thoughts like: there’s no change in performance with training, it’s a waste of money, it’s a nice day off of real work, It’s not anything new…they’re going to leave anyway, Show me the results…and then I’ll invest in my team!

Let me give you undeniable, bottom-line proof. There’s hard data that training, professional development really do determine your NOI!

The Facts: An Indiana property management company with a focus on employee development from 1999-2007 (over a 9 year period) was able to realize noteworthy results throughout their 16,000 unit portfolio. Specifically, a 20% decrease in resident turnover and a striking 44% decrease in employee turnover.

Over that same period their leasing consultants were able to increase their closing ratios by 21% and decrease their cancellations by a whopping 41%. Impressive results.

In 2007, they were able to compare and document the difference of approximately $400 per unit NOI …on two identical assets. Yes… $400 per unit! At a conservative 7% cap rate that’s a difference of $1.5 million in value!

Are you curious to know what the difference was? One manager had additional professional development and her CAM…Certified Apartment Manager designation.

Now were talking proof of performance through increased profitability…by investing in team members. Training costs are so small in comparison to the NOI results that are possible. Invest in your team, invest in yourself today! Call or email me to learn how to ‘think like an owner’ to create value everywhere!

For more information on how your organization can create more value through targeted training, contact Terri today. 303-439-0077.

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