Multifamily Minute Reader Reflections: Are Your Residents Working From Home?
We asked our 40,000 readers if their buildings' residents work from home. Find out why it matters for your property's retention and profitability.
Last week, we asked our Multifamily Minute subscribers if their residents tended to work from home — and, if so, to what level.
You'll find the results below.
Survey Results
The results were pretty surprising to me. Consider: A majority (52%) of our respondents didn't know if a sizable chunk of their residents work from home.
Why is that such a big deal? Find out below the table.
Amount Renters Working from Home | Percent of Respondents |
|---|---|
80% or more | 1% |
60% to 79% | 2% |
40% to 59% | 3% |
20% to 39% | 23% |
Less than 20% | 19% |
I honestly have no idea | 52% |
It might not be a big deal right now, but it certainly could make an impact when it's time for your residents to renew. Renters who work from home will tend to have a higher focus on the quality and size of their units and, also, what amenities are on offer.
It's a bit of an oversimplification, but it helps me to think of it in a mathematical way. Let's compare these (again, oversimplified) two categories of renters.
Residents Who Work Outside the Home
Every day, the typical person gets seven to eight hours of sleep, commutes for an average of one hour, and works another eight hours outside of your building. That leaves a balance of about seven or eight waking hours where they're in their home.
(Of course, that's assuming they don't have social lives. They're probably out shopping, dining, or having fun for at least a couple hours each day, too.)
So, I think it's safe to assume the average American is probably at home, awake, for around five or six hours a day.
Residents Who Work From Home
The calculations for someone working from home are a bit different. First of all, no commute (yay!). And instead of spending eight hours working outside their home, they're spending those hours at a desk, kitchen table, sofa, or wherever they've got room to do business.
Assuming they're sociable and out of the building for a few hours each day, that still means they're spending around 14 or 15 hours a day in their unit.
Are they comfortable enough? Do they have access to high-speed internet? Is there, simply, enough space?
These questions are critical in keeping today's residents as tomorrow's residents. But of course, that only matters if your residents are, in fact, working from home.
Find out if they are. You could even just send your residents a quick survey. Ask if there's anything they need to effectively work from home.
Sure, that might create unrealistic expectations — I know I'd think the world of my landlord if she added a complimentary daycare — but you'll be able to see how likely your renters are to renew once their leases are up.
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Our Previous Survey
Our last survey asked about multifamily conversions. You know, those big, flashy projects where developers transform vacant office buildings, hotels, and the like into apartment communities. How viable are they? Read our analysis and find out.