Multifamily Owners Are Renovating to Stay Competitive—But Can They Keep Tenants Happy While They Do It?

• Multifamily Focus: Multifamily owners aim to boost rents through property upgrades while keeping tenants in place during renovations.

• Silo smashing: AI is helping multifamily teams work together by connecting data, cutting energy costs, and improving performance across entire portfolios.

• Trigger warning: A new rule could ban the popular practice of “trigger leads” in mortgage lending.

• Powerless associations: States are limiting the power of HOAs by capping the amount that they can fine for minor infractions.

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Multifamily Focus

Multifamily Owners Are Renovating to Stay Competitive—But Can They Keep Tenants Happy While They Do It?

Multifamily owners are doubling down on renovations as a way to stay competitive in a market saturated with newer, amenity-rich developments. With rental growth slowing in many areas, value-add improvements are seen as essential to maintain tenant interest and justify higher rents. These upgrades go beyond simple cosmetic changes—owners are investing in energy efficiency, smart home features, and revamped community spaces in an effort to attract renters who now expect more than just four walls and a roof.

But these improvements come with tradeoffs, especially for tenants currently living through them. The construction process can disrupt daily routines, and miscommunication or poor planning can quickly erode tenant satisfaction. Property managers are increasingly trying to mitigate this by offering flexible scheduling, communicating clearly about the scope and duration of projects, and even incentivizing tenants to stay during the mess. Still, there’s a fine line between improving a property and alienating the people already living there.

The value of these renovations depends on more than just aesthetics—it’s about retention and long-term income growth. Upgrades to kitchens, bathrooms, flooring, and lighting are consistently among the most cost-effective and popular. Common areas, pet amenities, and outdoor enhancements can help foster community and improve tenant experience, even as rents rise. As competition intensifies, the owners who find ways to renovate while keeping tenants happy will be the ones most likely to thrive.

Multifamily Focus

Overheard

HOA Power Is Crumbling as States Fight Back

HOAs have been a source of ire since they were enacted in America's first planned communities in the late 40s and 50s. Now, California has limited the ability for homeowners associations to force homeowners into compliance. As of July 1, state law AB 130 caps HOA fines at a flat $100 per violation—even in cases where boards once threatened $500 per day penalties. The only exceptions are violations that “may result in an adverse health or safety impact,” and only after a formal hearing and documented board finding. This might seem like a small detail but in fact its a seismic shift of power. Actions like short‑term rental infractions or unauthorized renovations suddenly become low‑risk, low‑cost gambles rather than serious deterrents.

What’s happening in California is part of a broader legislative shift pushing back on HOA overreach. North Carolina’s Planned Community Act mandates due‑process hearings and limits fines. Maryland’s HB 107 forces reserve studies and empowers boards to override bylaws that capped assessment increases—effectively shifting funds back to owners. Meanwhile, Florida just passed HB 1203 to throttle selective enforcement, forbid fines over common‑area infractions that aren’t visible, and ban penalizing routine landscaping or holiday decor violations. Across the country, these reforms chip away at HOA dominance.

For homeowners, the message is clear: associations are losing unilateral power. Rules that were once rolled out as rigid, binding bylaws are now becoming conditional or even arbitrary. HOA boards must recalibrate their strategy, focusing less on financial penalties and more on consensus, documentation, and community participation. After this wave of reforms, HOAs are no longer untouchable and their fine schedules no longer carry the same weight.

New Mortgage Law Will Ban Popular Practice of "Trigger Leads"

After years of industry frustration, Congress has passed the Homebuyers Privacy Protection Act (H.R. 2808/S. 1467)—a bipartisan effort now headed to President Trump’s desk for signature. The legislation finally bans the widespread practice of selling so‑called “trigger leads” unless the consumer has explicitly opted in or already shares a relationship with the lender pulling their credit report. That means unsolicited calls, texts, and emails immediately following a mortgage application should soon become a thing of the past.

Leading trade groups like the Mortgage Bankers Association, the National Association of Mortgage Brokers, and the Broker Action Coalition herald the bill as a long-overdue industry fix. Originators have long argued that trigger leads undermine borrower trust, disrupt client retention, and unfairly reward poaching rather than building relationships. With unanimous support in both chambers and no projected fiscal impact, it's a textbook case of effective coordination—and momentum that all but guarantees enactment before year-end.

For the mortgage industry, this rewrites how consumer data is handled at the inquiry phase. Instead of list sales to anonymous solicitors, lead generation will need to rely on consent-based funnels, CRM engagement, and opt-in communication strategies. Compliance teams have just six months to adjust policies and systems before the law’s effective date post-signature. Firms that adapt early will avoid penalties and will likely emerge with stronger borrower rapport and brand credibility. Whether that translates to more repeat customers for transaction-based products like mortgages is yet to be seen.

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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