In the fast-paced environment that is the multifamily industry, it can be easy to get caught up in the day-to-day activities of the office and forget the big picture. However, it’s important to take a step back once in a while to make sure your property is on the right track and making progress with goals and objectives. One of the easiest ways to accomplish this task is by conducting a SWOT analysis.
SWOT—an acronym for strengths, weaknesses, opportunities, and threats—is a simple way to evaluate your community based on internal and external factors.
When assessing strengths, look for characteristics and advantages your community has over competitors. Unique apartment features, additional amenities, more square footage, and location are all examples of possible community strengths.
Identifying weaknesses is just as important as finding strengths. What do your competitors have that you do not? Why does a prospect choose to rent from a competitor instead of your community? Perhaps your community’s location is inferior or you lack features and amenities that your competitors have.
Opportunities refer to external factors that a community could use to its advantage. For example, a large company moving to the area could mean a larger prospect pool. Perhaps a competitor increased prices while yours remained the same. A downturn in the housing market could also be seen as an opportunity as it usually produces an influx of renters. The goal is to identify any factors occurring externally that could be exploited to your advantage.
A threat is the exact opposite of an opportunity because it is an external factor that could be detrimental to the community. Examples of threats include new construction in the area, competitors upgrading, competitors decreasing rents, and even the housing market improving.
By conducting a SWOT analysis your team will identify factors that are both favorable and unfavorable to the community, thereby giving them a well-rounded view of where the property stands and what could affect it in the future. Completing a SWOT analysis monthly will ensure that your team never loses sight of the big picture.