We Are All in the Hospitality Business
The Importance of Great Customer Service in Affordable Multifamily Housing
Whenever I talk to folks who have found lasting success in the affordable multifamily housing sector, the conversation always returns to a very simple premise: We are not just in the real estate business. We are in the hospitality business.
That may sound like an odd perspective, but it is a mindset that changes everything.
When most people start out in this business, they start by learning real estate—how to underwrite a deal, how to work a pro forma, how to close a transaction. And that is a very good thing. It’s foundational to getting started1. But the folks who achieve long term success are those who also recognize where lasting value begins. It doesn’t start with the building. It starts with the people who live there.
That means our business is not just to own a building, it is to maintain a home. And if someone is paying you money every month in exchange for that home, then you are not just in the business of real estate. You are also in the hospitality business.
The Business of Serving Renters
Let’s be honest: being a real estate mogul sounds a lot cooler than working in the hospitality business. But the underlying financial value of a multifamily property doesn’t come from yield premiums, financing structures, or cap rate algorithms2. It comes from having a lot of renters who like living in your building, pay rent on time, and will recommend it to their friends.
If you want to succeed in multifamily, especially in the affordable space, you have to start with that basic truth. The person who pays rent is the customer. And our job is to earn their business every single month.
That approach doesn’t just apply to property managers. It applies to owners, developers, asset managers, lenders, and service providers. If your job depends on someone who is willing and able to pay rent to live in your building, then your job depends on service.
And service means more than fixing the sink on time or answering the phone. It means creating a culture of hospitality—where your entire team, from top to bottom, takes pride in delivering services that matter to the people who live there3. And where the people take pride in calling your building their home.
Value Comes From Excellence
In the multifamily business, we talk a lot unlocking value via systems, financing, compliance, and underwriting. But last value begins with a commitment to excellence
And excellence begins with service.
Great affordable multifamily organizations are no different than any other great organization. They all begin every day with a commitment to serving the people who pay them. For a car company, that means building vehicles that are comfortable, reliable, and reasonably priced for the people who drive them. For an affordable multifamily owner that means managing properties that are safe, healthy and affordable for the people who live there.
It also means extending that commitment of service across the organization to their business partners, investors, and community stakeholders. Phone calls get returned. Questions get answered. Problems get solved. And if you get it wrong the first time, make it right the second time.
On your way home from work, take some time to think about the best service you’ve ever received. Maybe it was a waiter who remembered your name. A flight attendant who found space for your bag, or a customer service agent who went out of their way to help you4. Think about how good it felt to be valued. That’s the standard. That’s how good property owners want their renters to remember them.
To be clear, this is not a touchy-feely everybody gets a trophy sort of thing. This is not about re-imagining new ways to operate affordable multifamily properties5. It is about simple blocking and tackling. Doing all of the little things right all of the time. It is about running a high-performing business that maximizes occupancy, minimizes turnover, and consistently delivers value by making their customers happy.
Hospitality. It’s what the best run organizations already do.
A Call to the Next Generation
For anyone just getting started in this field—especially young professionals—I hope this message sinks in early. Because the earlier you understand it, the more valuable you will become.
Don’t get me wrong, any career in the affordable multifamily housing business has to begin with a firm understanding of real estate. The math always matters, and knowing how to model cash flows, calculate IRRs, and determine a property’s intrinsic value are all mission-critical. But if you don’t wake up every morning why those things matter. If you come to work not knowing that your most important job is to serve the people who call your properties home — the people whose rent makes your paycheck possible — then you will never unlock your full potential in the affordable multifamily housing industry.
Never forget the business we are really in. We make sacred things. We turn buildings into homes. That’s a powerful responsibility, and we should treat it like one.
Seriously, if you do not know how a property makes money, then you will never be able to create lasting impact at scale. If you want to change the world, don’t waste your time fighting capitalism. Understand it. If you know how something works, you can make it work for you.
Knowing these things might get you invited to more closing dinners, where you will inevitably spend the evening talking about the value of low-flow toilets, well-lit stairwells, and how to measure resident satisfaction.
If you are interested in learning more about industry standards for resident services and property management, check out the Multifamily Impact Framework. It is free to download and available to everyone.
I will never forget the waiter who overhead me saying that my phone’s battery was dead and then came back to the table with a portable charger.
Whenever someone says “let’s reimagine how to solve a problem” somewhere a white paper gets its wings.