Strategies to tighten and strengthen collaboration in underwriting.

Underwriting is more than a mere spreadsheet exercise. It's a collaborative, dynamic process that requires input from across the organization to ensure projections become achievable NOI. By integrating operational insight, market intelligence and strategic planning, underwriting can evolve from a static analysis into a true blueprint for success.

Those were some of the major takeaways of the “Elevate Your Spreadsheet: Transitioning Underwriting to Achievable NOI” session at Apartmentalize 2025, in which panelists outlined a range of ways for apartment firms to optimize the underwriting process to set the stage for success. 

Understanding Underwriting 

Underwriting begins with five essential steps: Gathering information, analyzing risk, making decisions, setting terms and involving the appropriate people, according to the panelists. While many investors focus on the first four, the fifth is often overlooked but probably the most critical. From onsite managers to corporate leadership, involving the right people ensures that the process is grounded in reality. 

The panel made it clear that underwriting must incorporate operational data, community context and hands-on experience to produce results that are both accurate and executable.

“Look at your risk assessment: It's not just the risk of buying an asset or losing money,” said Ivana Christman, Owner and President at Quest Management Group. “Examine the market and see what other risks are out there, including vendors or competitors that are in or leaving the area, and what buildings are coming in. The risk these days is much different than it might have been just even a few years ago. The greater context matters.”

A strong underwriting model must reflect local conditions. The panel urged investors not to generalize about “good” cap rates without first understanding the style and location of the community being evaluated. They also stressed that any sound model must include a clearly defined exit strategy from day one. Whether refinancing, holding long-term or selling in a few years, the business plan must guide both underwriting and operational strategy.

Stress-testing models with both best- and worst-case scenarios was another recommendation for building resilience in a shifting market environment.

Ownership vs. Management Perspectives 

One of the most impactful insights from the session was the importance of examining underwriting from both the ownership and management perspectives. 

From an owner’s view, underwriting includes evaluating the community’s current and future value, location, property condition and the impact of debt structures on long-term plans. Owners must also ask whether their pro forma accounts for worst-case scenarios and whether it realistically aligns with investment goals.

From the management perspective, underwriting is about execution. Managers need to understand investors’ financial expectations and cost structures. It’s crucial that management’s capabilities and resources align with NOI goals and that operational strategies match the needs of the market and residents. Without that alignment, ownership projections are just theoretical, the panelists said.

“It's important to start with historical financials but deeper involvement is necessary,” said Kubie Davis, Regional Director of Property Management at Quest Management Group. “Teams need to ask how income and expenses behave in the real world and factor in local market quirks that only the asset and site teams might recognize. These insights aren’t captured by software. They come from experience and cross-collaboration.”

The People Connection 

Ultimately, the panelists drove home the importance of people in the underwriting process. Numbers alone don’t guarantee success. Involving the full team of onsite, regional, asset management and human resource professionals adds essential context to what the spreadsheet is calculating. 

Cross-functional training, open communication and continuous feedback help ensure that what’s forecasted on paper becomes reality in practice. 

“It’s crucial to get that buy-in across the entire organization to ensure you’re considering and doing the right things,” said Allison Moledo, Vice President of Learning and Development at Grand Peaks. “Getting a versatile team in place from the beginning of the process sets you up for better risk management and more reliable financial predictions.”

Underwriting isn’t just a financial exercise—it’s a team sport. By bringing every voice to the table, organizations can build smarter, more resilient and more profitable investment strategies.

Andrew Ruhland is an Account Executive and Content Writer for LinnellTaylor Marketing.