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The Top 15 Multifamily Property Managers of 2023: What Sets Them Apart
Choosing the right property management company for your apartment building is critical to your investment's success. Learn who is our top property management company of 2023.
- The Importance of Exceptional Property Management in 2023
- Experience & Expertise
- Operational Efficiency
- Tenant Relations
- Growth & Adaptability
- Technology Integration
- Transparency & Communication
- Top 15 Property Management Companies of 2023
- 1. Greystar
- 2. RPM Living
- 3. Asset Living
- 4. Avenue5 Residential
- 5. ZRS Management
- 6. Bozzuto
- 7. Hawthorne Residential Partners
- 8. RKW Residential
- 9. Berkshire Residential Partners
- 10. FPI Management
- 11. Village Green
- 12. Marquette Management
- 13. FPA Multifamily
- 14. Habitat America LLC
- 15. The Related Cos.
- Conclusion
- Related Questions
- Get Financing
The Importance of Exceptional Property Management in 2023
The foundation of a successful multifamily investment hinges on the right partnership with an exceptional property management firm. These professionals, pivotal in the realm of multifamily assets, hold the keys to high occupancy rates, tenant satisfaction, and optimized operational efficiencies. Their adeptness in navigating the complexities of diverse property types and in managing growth plays a decisive role in enhancing an asset's value and its eventual profitability.
Drawing from data from Multi-Housing News' annual management ranking, we recalibrated the weighting of key data points to underscore the significance of occupancy and growth above market share. A 2022 property management trends report shows that the cost of losing a resident stands at a staggering $3,976. Such a loss directly impacts an investment’s bottom line. With a surge of new apartments entering the market, it's even more crucial now to identify a property management partner equipped to bolster your assets' retention and occupancy rates.
So, what truly characterizes an exceptional property manager in this evolving landscape?
Experience & Expertise
Their robust track record in managing diverse property types furnishes them with an acute understanding of market nuances, resulting in proactive problem-solving and an enhancement of the asset's value.
Operational Efficiency
Efficient operational processes directly influence tenant retention rates. Exceptional property managers weave best practices into their routine, ensuring optimal cost without compromising on quality.
Tenant Relations
Beyond the numbers, the essence of property management lies in fostering genuine tenant relationships. A satisfied tenant, met with responsive maintenance and regular engagement, is likely to renew their lease.
Growth & Adaptability
The best managers demonstrate agility in adapting to new market conditions. Their forward-thinking approach ensures they're always poised to maximize asset value.
Technology Integration
In our digitized era, top property managers employ technology to enhance operational efficiency and enrich the tenant experience.
Transparency & Communication
Effective communication fosters trust. Whether updating investors or informing tenants, exceptional property managers prioritize transparency.
Top 15 Property Management Companies of 2023
Rank | Company Name | Units Under Management (2022) | Portfolio Growth (%) | Occupancy (2022) |
---|---|---|---|---|
1 | Greystar | 741,283 | 5.68% | 93.50% |
2 | RPM Living | 148,603 | 31.66% | 93.00% |
3 | Asset Living | 202,748 | 27.23% | 90.20% |
4 | Avenue5 Residential | 100,805 | 15.92% | 94.80% |
5 | ZRS Management | 76,455 | 27.02% | 93.00% |
6 | Bozzuto | 88,710 | 6.46% | 93.70% |
7 | Hawthorne Residential Partners | 49,703 | 22.13% | 94.38% |
8 | RKW Residential | 33,887 | 18.66% | 94.80% |
9 | Berkshire Residential Investments | 37,036 | 22.38% | 94.00% |
10 | FPI Management Inc. | 159,248 | 13.53% | 93.00% |
11 | Village Green | 37,929 | 6.54% | 95.00% |
12 | Marquette Management | 15,790 | 20.60% | 93.00% |
13 | FPA Multifamily | 45,200 | 6.35% | 94.00% |
14 | Habitat America LLC | 10,126 | 5.03% | 98.00% |
15 | The Related Cos. LP | 67,786 | 12.32% | 97.00% |
1. Greystar
Greystar takes first place in our ranking this year. While its 5.7% growth may seem relatively unremarkable, such growth is profound, given the size of its 700,000-unit portfolio. Greystar isn’t just limited to the U.S., either: The company also operates in South America and Europe.
The organization has acquired many property management companies in the past, and it continues to do so on both sides of the ocean. In December 2022, Greystar closed the acquisition of Student Roost, a major provider of student housing in the United Kingdom. The company is also beginning to expand into the short-term rental market, partnering with Airbnb.
2. RPM Living
A full-service investment, development, and property management company, RPM Living lands in second place, boasting a portfolio of nearly 150,000 units across more than 20 states. While this alone is enough to land RPM in our rankings, it also expanded its management footprint by a staggering 32% between 2021 and 2022.
Based in Austin, RPM Living has grown organically but also through a series of key acquisitions. In 2020 and 2021, the group acquired Maverick Residential and Pace Realty, expanding into major markets like Phoenix and into different multifamily asset types, including seniors and student housing. Then, in early 2021, RPM merged with Atlanta’s CF Real Estate Services, driving even further growth.
3. Asset Living
Asset Living takes third place on our ranking for good reason: While its portfolio is an impressive 160,000 units, its growth has been rapid as well, at close to 27% in a one-year period.
The third-party property manager operates in 40 states, handling everything from build-to-rent to student housing assets, in addition to more traditional multifamily and affordable communities.
4. Avenue5 Residential
Headquartered in Seattle, Avenue5 Residential lands in fourth place with a portfolio of more than 100,000 units and a steady growth rate of close to 16% over the year. The firm, led by President & CEO Chip Watts, doesn’t just limit itself to multifamily management — it also handles single-family rental homes as well. Avenue5 began as a management arm for owned properties, expanding in 2016 to offer third-party services.
5. ZRS Management
With a portfolio of 76,455 units spanning eight states, ZRS Management takes fifth place on our list. The property management firm grew by an astounding 27% between 2021 and 2022. The company prides itself on what its vice president calls its "instagrammable spaces," meaning that it focuses on much more than just traditional curb appeal at its properties.
The company, founded in 1991, is headquartered in Orlando, Fla., with 11 satellite regional offices to cover its portfolio from Texas to Illinois.
6. Bozzuto
A developer and property manager, Bozzuto has a portfolio of more than 88,000 units across 12 states. The company also manages close to 3 million square feet of retail space. The firm boasted an impressive, 6.5% growth rate for its multifamily assets under management coming into 2022.
Based in the Washington, D.C. suburb of Greenbelt, Maryland, Bozzuto’s focus is nationwide — but its home market remains the largest and most important, comprising close to half of its overall portfolio.
7. Hawthorne Residential Partners
Hawthorne, founded in 2009, lands in seventh place on our list. The firm had approximately 50,000 units under management at the end of 2022. That marks a stunning 22% increase from the previous year. Most impressively, its portfolio was 94.4% occupied at the end of last year.
The company, based in Greensboro, N.C., operates multifamily assets in more than 90 cities in eight states.
8. RKW Residential
RKW Residential and its nearly 34,000-unit portfolio land eighth on our list, owing to a strong portfolio occupancy of 94.8% and rapid growth of approximately 19% in a one-year period. The company has corporate offices in Miami and Charlotte, with three additional regional offices to handle its portfolio, the bulk of which is located in the Sunbelt region.
In early 2022, RWK was acquired by Alfred, a multifamily management software provider, for approximately $50 million. The acquisition came on the heels of a $125 million capital raise for the startup.
9. Berkshire Residential Partners
Berkshire Residential Partners had more than 37,000 units under management at the end of 2022, a large 22% increase from the previous year. The firm — which is not related in any way to Berkshire Hathaway — also boasted an impressive occupancy of 94%.
The company had around $27 billion in assets under management as of the end of March 2023. Based in Boston, the firm has been in business for more than half a century. Note that Berkshire Residential does not typically offer third-party management services.
10. FPI Management
Headquartered outside of Sacramento, California, FPI Management ranks 10th on our list with a portfolio of close to 160,000 units and an annual growth rate near 14%.
The company is largely focused on California and other western markets though it operates in 15 states, from Alaska to Florida. FPI handles a diverse mix of properties, from affordable housing to luxury communities.
11. Village Green
Detroit-based Village Green lands in 11th on our ranking, thanks to an incredibly high occupancy rate of 95% across its portfolio of around 38,000 units. The group's growth has been steady, increasing by approxiamtely 6% in the previous 12 months.
The group works out of six offices, and its portfolio stretches from Arizona to Connecticut, encompassing properties in approximately 50 cities.
12. Marquette Management
Based in the Chicago suburb of Naperville, Marquette Management had close to 16,000 units in its portfolio at the end of 2022, a solid 20% increase from the previous year.
The firm, founded in 1983, operates assets in seven states. In addition to its home state of Illinois, it also manages luxury, market-rate, and affordable housing properties in Texas, Florida, Tennessee, Indiana, Michigan, and Minnesota.
13. FPA Multifamily
Real estate investment firm FPA Multifamily lands in 13th place on our list, with 45,200 units under management. That marks a nearly 14% increase from the previous year.
Headquartered in San Francisco, FPA operates both within all of California's major markets in addition to large metros across the country, from Minneapolis to Dallas-Fort Worth. The investor's current holdings encompass some 190 apartment complexes nationwide.
14. Habitat America LLC
Focused strictly on third-party management, Habitat America works in senior housing, affordable apartment complexes, and market-rate assets in Washington, D.C., Delaware, Maryland, Virginia, and Pennsylvania.
At the end of 2022, the group had a little more than 10,000 units under management, marking an increase of around 5% from the previous year. Habitat's occupancy was beyond impressive, however: The company's management portfolio was 98% occupied, the highest among all companies on our list.
15. The Related Cos.
The largest landlord in New York City, The Related Cos. has made a lot of high-profile developments in the past couple of decades, including Manhattan's Hudson Yards — the largest commercial development in U.S. history — and The Century in Los Angeles.
Related comes in 15th with an impressive portfolio of nearly 70,000 units with an occupancy of around 97%. The company does manage its own assets but offers third-party management services as well.
Conclusion
Although the multifamily sector is facing many headwinds, the asset class remains a solid investment choice for many, even those without a deep level of experience in operating apartment buildings. Many larger and less experienced investors opt to utilize a major property management company to oversee the day-to-day operations of a community — especially if it’s not close to home.
While our list did not include any strong local multifamily property managers, don’t forget to look within your own market when selecting which company will operate your next investment. One key thing to remember, however, is that size isn’t everything — choosing a property management company that aligns with your investment strategy and asset type is the key to success.
Looking for last year's ranking? Find our 2022 list here.
Related Questions
Do I need to use a third-party property manager for my apartment building?
- It depends on your financing. Many types of multifamily loans, from HUD to Fannie and Freddie products, require or encourage the use of a third-party property management company as a way of mitigating risk.
What are the advantages of multifamily investing?
- Multifamily investing is attractive to many investors due to its potential for higher returns, liquidity, and diversified tenant mix. Additionally, multifamily investments can be less volatile than other investments, as multiple tenants can help reduce the risk of performance.
What are the disadvantages of multifamily investing?
- The main disadvantage of multifamily investing is the initial cost associated with the purchase and maintenance of the property. Additionally, multifamily investments often require a significant amount of time and effort to manage multiple tenants, and investors must be aware of applicable laws and regulations.
What are the best practices for selecting a multifamily property manager?
The best practices for selecting a multifamily property manager include looking for a company that has attention to detail, is efficient, and aligns with your investment strategy and asset type. It is also important to look within your own market when selecting which company will operate your next investment.
For more information, please see this article and this article.
What are the benefits of hiring a multifamily property manager?
Hiring a multifamily property manager can provide several benefits. According to this article, some of these benefits include:
- Time, money, and energy savings
- Professional standards for running the property
- Deductible operating expenses and maintenance costs, including management fees, insurance, and marketing costs
- Deductible legal and professional services, such as property management companies
What are the most important qualifications to look for in a multifamily property manager?
The most important qualifications to look for in a multifamily property manager are attention to detail, strict enforcement of rules, excellent customer service, and a thorough understanding of the local market.
Attention to detail is essential for a property manager to ensure that all tenants' needs are met and that the property is well maintained. Strict enforcement of rules is necessary to ensure that tenants and staff alike follow all rules and regulations, and to mitigate liability risk. Excellent customer service is important to maintain a great reputation with tenants in the market. Lastly, a thorough understanding of the local market is necessary to ensure that the property is competitive and attractive to potential tenants.
For more information, please see this article.
What are the common mistakes to avoid when selecting a multifamily property manager?
When selecting a multifamily property manager, it is important to consider the size of the company, their experience in the asset class, and their ability to align with your investment strategy. Additionally, it is important to look within your own market when selecting a property manager.
Common mistakes to avoid when selecting a multifamily property manager include:
- Not considering the size of the company
- Not considering the company's experience in the asset class
- Not considering the company's ability to align with your investment strategy
- Not looking within your own market when selecting a property manager
For more information, please see this article and this article.
What are the most important questions to ask a potential multifamily property manager?
When considering a potential property manager for your multifamily property, it is important to ask questions that will help you determine if they are the right fit for your needs. Here are some of the most important questions to ask:
- What experience do you have managing multifamily properties?
- What services do you provide?
- How do you handle tenant complaints and maintenance requests?
- What is your approach to tenant screening and lease enforcement?
- How do you handle tenant move-outs and evictions?
- What is your fee structure?
- Do you have references from other clients?
Asking these questions will help you get a better understanding of the property manager's experience and capabilities, and will help you make an informed decision when selecting a property manager for your multifamily property.
What are the top 15 multifamily property managers of 2023?
The top 15 multifamily property managers of 2023 are:
Rank Company Name Units Managed, 2022 YoY Growth 1 Greystar 698,257 4.4% 2 Asset Living 159,352 54.6% 3 RPM Living 112,872 38.3% 4 Highmark Residential 79,050 106.2% 5 Avenue5 Residential 86,957 14.6% 6 Apartment Management Consultants 113,728 13.3% 7 FPI Management 140,271 8.3% 8 BH 106,353 6.2% 9 Cushman & Wakefield 172,145 1.7% 10 Lincoln Property Company 210,086 0.0% 11 Bozzuto 83,324 4.1% 12 WinnCompanies 103,064 1.8% 13 Morgan Properties 96,107 1.8% 14 AvalonBay Communities 80,573 1.0% 15 MAA 100,002 -0.5%
- The Importance of Exceptional Property Management in 2023
- Experience & Expertise
- Operational Efficiency
- Tenant Relations
- Growth & Adaptability
- Technology Integration
- Transparency & Communication
- Top 15 Property Management Companies of 2023
- 1. Greystar
- 2. RPM Living
- 3. Asset Living
- 4. Avenue5 Residential
- 5. ZRS Management
- 6. Bozzuto
- 7. Hawthorne Residential Partners
- 8. RKW Residential
- 9. Berkshire Residential Partners
- 10. FPI Management
- 11. Village Green
- 12. Marquette Management
- 13. FPA Multifamily
- 14. Habitat America LLC
- 15. The Related Cos.
- Conclusion
- Related Questions
- Get Financing