Last month, the Federal Reserve implemented the highest interest rate increase in decades. The 75-basis-point hike marked the third increase this year alone.

According to industry experts, cash-flowing multifamily and industrial assets won’t be as severely impacted and these property types will continue to see significant rental rate growth. Stabilized cap rates are expected to hold firm in the long term as investors see rent growth keep up with inflation.

Unlike those who seek to purchase single-family homes, the demand for both single-family and multifamily rentals is expected to strengthen along with rents. 

But while multifamily may be less impacted than other commercial real estate asset classes as attempts are made to slow down rising inflation, there is still a growing concern from investors about the higher cost of debt capital, tighter underwriting, and lower prices.

According to a recent report by Multifamily Dive, apartment residents are staying in their homes longer despite sharp rental rate increases.

The number of renters staying in their apartments rose by 3.5% year over year in April 2022 to 57%. In more affordable class C apartments, 65% of renters renewed in the past year compared to 53.4% in class A. 

The significant difference in the price increases between new leases and renewals isn't coincidental. Many property management operators are trying to strike a balance between introducing higher rental rates to current residents while trying to ensure they renew their contracts.

When renters renew their leases, they’re spending more. In April, residents paid 10.7% more when compared to their previous lease, according to RealPage.

Don't estimate the power of preventive maintenance! These simple fixes can save you thousands in the long run. 

A simple air filter replacement that only costs a few dollars can be the key to higher efficiency and longevity of a unit that often leads to costly repairs if left overlooked.

Expensive repairs can't always be foreseen, but they can usually be prevented or minimized with a comprehensive maintenance plan. When developing a maintenance plan, consider areas around your property where maintenance is needed most. Next, build a process and schedule that decreases the risk for each of those areas.

Read the article by Multifamily Insiders that lists five key points that will help you begin your multifamily property maintenance plan: