"As an executive leader in talent acquisition and development at Morgan Properties, one of the three largest privately held multifamily companies in the United States, I've witnessed firsthand how the staffing landscape has fundamentally shifted over the past few years. Our 2,500+ person organization operates across 22 states, which gives us unique insights into both national trends and regional nuances that shape workforce dynamics" - Jessica Sachs, SHRM-SCP, is Vice President of Talent Acquisition & Development with Morgan Properties.
 

The Current Staffing Crisis: More Complex Than Ever

The data tells a stark story. Recent National Apartment Association (NAA) research shows that 74% of property management professionals cite human resources, staffing and recruitment as among their top three challenges, with 50% identifying these issues as their primary challenge (1). But what we are seeing goes deeper than simple labor shortages.

The most frequently cited challenges for onsite teams in 2024 included dealing with aggressive and abusive residents (22%) and the inability to disconnect after hours (16%), creating a compound effect where staffing challenges intersect with workplace stress and mental health concerns (2). This isn't just about filling positions, it's about retaining talent in an increasingly demanding environment.

At Morgan Properties, we've observed how these pressures manifest differently across our markets. In the Midwest, where we operate in cities like Chicago, we're competing with healthcare, technology and manufacturing sectors that have responded to labor shortages with significant wage increases. Meanwhile, in Sun Belt markets, rapid population growth combined with an increase in apartment supply has created both opportunity and intense competition for skilled property management professionals.

The Real Impact: Beyond Empty Desks

When staffing levels drop, the consequences ripple through every aspect of operations. The inability to backfill positions plus the influx of inexperienced new hires created a training backlog, a "doing more with less" situation creating inefficient property management operations.

Industry research suggests that understaffed properties typically experience longer maintenance response times and higher resident turnover rates. The financial impact extends beyond these operational metrics, with properties maintaining consistent staffing generally reporting better occupancy rates than those experiencing chronic turnover.

Perhaps more critically, resident satisfaction scores tend to decline when properties operate below optimal staffing levels. In today's competitive rental market, property management professionals view maintaining high occupancy rates as a major priority this year and this requires teams that can deliver exceptional resident experiences consistently (5).

Strategic Solutions: Beyond Traditional Recruiting

The traditional "post and pray" recruitment approach is dead. We have had to completely reimagine how we find, attract and develop talent. Here are some strategic approaches that research and experience suggest can move the needle:

Redefining Career Pathways

Forward-thinking companies are restructuring career progression models to align with modern workforce expectations. Instead of linear advancement, organizations are offering lateral development opportunities that allow team members to gain diverse experience across different property types and markets. We speak about this shift internally by comparing it to climbing a ladder versus a jungle gym and offering specific up-skilling and re-skilling support for employees with award winning and accredited programs.

To attract and retain top talent in today's tight labor market, property management employers need to rethink what they can offer teams and how to make work more meaningful (5). While this does include staying competitive with wages and benefits, employers can also consider comprehensive development programs that provide clear pathways from entry-level roles to senior positions. One of our recently deployed programs targets single-site leaders to prepare them for multi-site or regional management by upskilling from proximity to remote leadership strategies. Within the first year of delivery, we are already showing an increase in retention with 58% of participants earning promotions with increased responsibility.

Additionally, we are piloting an apprenticeship program targeting maintenance skill development with defined competency milestones and corresponding compensation increases, which is already showing promising results.

Leveraging Technology to Support Teams

Technology adoption should focus on enhancing human capabilities rather than replacing them. While AI tools are gaining traction, with 28% of respondents leveraging AI tools to improve efficiency year-over-year (5), the key is strategic implementation that directly addresses staffing pain points.

Automation tools can eliminate repetitive administrative tasks, freeing staff to focus on relationship building and complex problem-solving. We have seen this play out in recent months as we leverage various technologies to more effectively meet our customers where they are, while simultaneously improving the employee experience by reducing administrative burdens on understaffed teams.

The goal isn't just operational efficiency, it is improving job satisfaction by allowing our teams to engage in more meaningful, rewarding work that reduces burnout and supports retention.

Balancing Innovation with Human Connection

Technology should augment human capabilities, not replace the personal connections that drive our industry. While various digital tools can help address staffing challenges by reducing administrative burdens and improving efficiency, the focus must remain on empowering our teams to deliver exceptional resident experiences.

Successful approaches establish clear guidelines where automation handles routine tasks, but human team members manage all complex resident issues and relationship-building activities. The key is viewing technology as supporting workforce effectiveness rather than a substitute for skilled professionals.

Measuring What Matters: The KPIs That Drive Success

Traditional staffing metrics like time-to-fill don't tell the complete story. The industry typically tracks a comprehensive set of indicators that provide deeper insights into workforce effectiveness. Some of these include Voluntary Turnover Rates, Training Hours per Employee, Internal Promotion Rates, and Engagement Surveys. By measuring these and maintaining open and transparent partnerships with operational leaders, we set better expectations that allow for more structured site support. It also allows for more data-driven decisions to be made around recruitment requirements and identifying bottlenecks in the process that do not benefit the employer or future employees. 

This is all around the dual-prong approach of reducing voluntary turnover rates (the percentage of employees voluntarily resigning in a period) and increasing the speed to hire qualified team members (which also protects the remaining employees on site from experiencing burnout). High rates of turnover or low rates of hiring speed demand attention as research indicates these properties experience measurably worse operational performance across key metrics, though specific thresholds vary by market and property type. 

Regional Insights: Midwest and Sun Belt Dynamics

Our multi-market presence reveals regional differences worth noting. In Midwest markets, companies compete with established industries offering stable employment with strong benefits. Here, our value proposition often emphasizes career growth potential and dynamic work environments. Conversely, Sun Belt markets present different challenges. Rapid growth means abundant opportunities but also intense competition for experienced talent (3). In these markets, we lean toward emphasizing culture and long-term stability as differentiators against newer, potentially less established competitors. 

Regardless of location, compensation strategies must reflect these regional realities. Industry data suggests that while competitive base salaries are essential, benefits packages and work-life balance initiatives often prove more decisive in candidate decisions. To better support our teams in the field, we implemented a quarterly “Morgan Essentials” bonus for site-teams, designed to cover shoes, attire, tools, etc. that our employees need to be successful. 

Culture as Competitive Advantage

Recent data indicates that the national rental retention rate was approximately 54.8% as of August 2022, with trends suggesting that retention rates have generally improved since the COVID-19 pandemic (8). The same principles driving resident retention apply to employee retention.

Building culture across geographically dispersed properties requires intentional effort. Successful approaches include regular regional meetings that combine business planning with team building, peer recognition programs and technology platforms that maintain connection across portfolios.

One example of how we implement this is through the initiatives of our Director of Employee Engagement by offering a variety of Employee Resource Groups (ERGs) with direct impact on organizational initiatives that continue to drive our culture through our PRIDE values (Passion, Respect, Integrity, Diversity, Entrepreneurial Spirit). Their focus is on creating a workplace culture where each employee feels connected, empowered and heard. The impact of these groups ranges from lunch-and-learn speakers (available to the whole company), specialty kits being available to sites (For example: Autistic-friendly toys/activities for kids), and general social support for all the things employees may be navigating that impact the workplace (For example: Veterans, military and first responders). 

By investing in continuing to cultivate and communicate our culture, Morgan Properties continues to elevate our employees’ voices, which we have found makes a significant difference in our ability to continue hiring and retaining the best talent. 

Future-Proofing Through Development

The pace of change in our industry demands continuous learning. Property management is a demanding job that sees higher-than-average turnover rates. Continued demands for higher wages to combat fluctuations in inflation, a better work-life balance for flexibility, and broader opportunities for career growth only add to staffing complexities (5).

Leading companies are shifting from traditional annual training programs to ongoing development initiatives that adapt to emerging challenges and opportunities. This includes identifying high-potential team members early and providing accelerated growth opportunities through cross-training, mentorship and strategic exposure.

Upskilling programs focusing on technology adoption, customer service excellence and business acumen are becoming standard. Partnerships with educational institutions to offer property management certification programs create clear pathways for career advancement while addressing industry-wide skills gaps.

Looking Forward: The Imperative for Action

The staffing challenges facing rental housing companies won't resolve themselves. Success requires a fundamental shift in thinking beyond viewing employees as costs to be minimized and instead recognizing them as the primary drivers of operational excellence and resident satisfaction.

This means investing in comprehensive compensation packages, career development programs and workplace cultures that attract and retain top talent. The companies that thrive will be those that can successfully differentiate the level of service they provide, as well as the level of efficiency they're able to achieve. Succeeding in both of these areas will depend on having a clear technology strategy and the structure to support its continued evolution. 

The data is clear, the challenges are real, but the opportunities for organizations willing to adapt and invest in their people are substantial. The future belongs to companies that can successfully navigate this talent evolution while maintaining operational excellence and financial performance.

Jessica Sachs, SHRM-SCP, is Vice President of Talent Acquisition & Development with Morgan Properties.