CBRE’s New Small‑Unit Property Management Strategy: What Long Island Landlords Need to Know

Hook

Imagine you own ten two-bedroom apartments scattered across Hempstead, Oyster Bay, and Suffolk. One morning you wake up to three separate tenant calls about a leaking faucet, a broken furnace, and a rent-payment glitch. You spend the day juggling phone numbers, vendor quotes, and compliance forms, and by nightfall you’re still unsure whether you’ll meet next month’s mortgage.

Chris Masotto’s appointment as head of CBRE’s small-unit property management division directly addresses the 68% of Long Island landlords who feel underserved, promising a service model that aligns cost, technology, and personal attention with the realities of owning five to twenty units.

"68 % of small-unit landlords on Long Island say they are not receiving the support they need," an internal CBRE survey released in March 2024 revealed.

By redesigning fee structures, introducing AI-driven maintenance alerts, and deploying on-site teams, Masotto aims to turn that dissatisfaction into measurable cash-flow gains for owners. The changes are slated to roll out in Q3 2024, giving landlords a clear timeline to prepare.

The Small-Unit Pain Point: Why 68% of Long Island Landlords Feel Underserved

Landlords with portfolios of five to twenty units report three core frustrations. First, they lack a dedicated account manager who can navigate day-to-day issues, forcing owners to juggle tenant calls, vendor quotes, and compliance paperwork themselves.

Second, maintenance response times average 48 hours, according to a CBRE internal audit, compared with the industry benchmark of 24 hours for larger clients. Delays translate into vacant days and higher repair costs.

Third, fee transparency is weak. Owners often see a flat 5-7 % management fee plus hidden service charges, eroding net operating income (NOI) by up to 1.2 % of gross rent.

These pain points directly impact cash flow. A 2023 study by the National Multifamily Housing Council showed that every additional vacant day costs landlords roughly $120 in lost rent on a typical Long Island unit.

Because of these challenges, many owners consider self-management or switching to boutique firms, which fragments the market and reduces economies of scale.

• Missing dedicated account manager
• Average 48-hour maintenance response
• Flat 5-7 % fee plus hidden charges
• Potential $120 loss per vacant day

Recent feedback from the Long Island Landlord Association (LILA) underscores the human side of the data: "I spend more time on phone calls than on actually growing my portfolio," says Maria Gomez, who manages eight duplexes in Huntington. "When I finally get a response, it’s often a generic email that doesn’t solve the problem."

That sentiment is echoed across the island, and it’s a key driver behind the upcoming service overhaul.

Meet Chris Masotto: A Track Record of Turnarounds in Property Management

Before joining CBRE, Masotto led a Boston-based property management firm through a 200-unit turnaround that reduced vacancy from 8 % to 3 % within 12 months.

His approach combined data analytics with tenant-centric communication. By deploying a cloud-based rent-payment portal, the firm saw on-time payments rise from 78 % to 94 %.

Masotto also instituted a performance-based incentive for maintenance crews, cutting average repair times from 72 hours to 22 hours.

During that period, the firm’s NOI improved by 4.5 percentage points, a gain attributed to both higher occupancy and lower operating costs.

Colleagues describe his leadership style as collaborative; he creates cross-functional teams that include leasing, finance, and technology specialists, ensuring every decision is backed by measurable outcomes.

His track record demonstrates that a data-driven, tenant-first mindset can scale from large portfolios to the nuanced needs of small-unit owners.

Masotto’s own words capture his philosophy: "Every landlord, no matter the size of their portfolio, deserves the same level of insight and service that larger investors get. It’s about turning data into action that improves both the tenant experience and the owner’s bottom line."

Current CBRE Service Model for Small Multifamily Portfolios

CBRE presently offers a one-size-fits-all fee structure: a flat 6 % of collected rent plus a standard 0.5 % leasing fee for new tenants. Service tiers are limited to “Basic” and “Premium,” with the latter requiring a minimum of 30 units.

Small owners receive only quarterly performance reports and a generic online portal that aggregates data across all clients, making it difficult to isolate individual property metrics.

Technology tools such as predictive maintenance analytics are locked behind the Premium tier, leaving 5-20-unit landlords without AI-enabled alerts for plumbing or HVAC issues.

Because the model does not include a dedicated account manager for owners under 30 units, communication is routed through regional supervisors who handle dozens of accounts, resulting in response times that often exceed 72 hours.

These constraints create a service gap that fuels the 68 % dissatisfaction highlighted in the CBRE survey.

For many owners, the lack of real-time visibility feels like driving at night with a dim headlamp - enough to see the road ahead but not the potholes that could cause a flat tire.

Projected Enhancements Under Masotto’s Strategy

Masotto’s roadmap introduces modular service bundles tailored to portfolio size. Bundle A, for owners of 5-10 units, will cost 4 % of rent and include a dedicated account manager, quarterly financials, and a 24-hour emergency line.

Bundle B, for 11-20 units, adds AI-powered maintenance alerts that predict equipment failure with 85 % accuracy, based on sensor data integrated from the building’s existing systems.

A third, optional “Growth” add-on provides lease-renewal marketing and rent-optimization modeling, leveraging Zillow’s rent-trend data for Long Island, which showed a 3.2 % year-over-year increase in 2023.

Masotto also plans to station on-site support teams in key Long Island towns - Hempstead, Oyster Bay, and Suffolk - so owners can schedule walk-throughs and repairs within the same business day.

By aligning fees with actual service consumption, the new model aims to reduce total cost of ownership by up to 1.5 % of gross rent while improving NOI through faster turnover and reduced vacancy.

Early pilot results from a handful of volunteer landlords indicate an average reduction of 10 % in vacancy days and a 7 % boost in on-time rent collection within the first six months.

Comparing the Old vs. New: A Side-by-Side Analysis

The table illustrates how Masotto’s modular approach can shave 2 percentage points off the management fee, while the AI-driven maintenance system cuts average repair time by half. Those efficiencies translate into higher NOI for owners.

For example, a landlord with 12 units generating $1,200 per unit per month would see annual rent of $172,800. Under the current 6 % fee, management costs are $10,368. Masotto’s 4.5 % fee reduces that to $7,776, a saving of $2,592 annually, before any operational gains.

Beyond pure numbers, owners gain peace of mind knowing that a real person - rather than a rotating supervisor - understands the quirks of each property and can act quickly when something goes wrong.

Practical Steps for Landlords to Leverage the New Leadership

Step 1 - Reach out to the CBRE Long Island office using the dedicated “Small-Unit Contact” email (smallunits@cbre.com). Mention the upcoming transition and request a portfolio audit.

Step 2 - Review the audit report, which includes current vacancy, rent roll, and maintenance history. Compare the report’s suggested bundle against your current expenses.

Step 3 - Sign the transition agreement, which outlines a 30-day onboarding period. During this time, Masotto’s team will migrate data to the new portal and assign a personal manager.

Step 4 - Set key performance indicators (KPIs) such as vacancy rate, average days to repair, and rent collection percentage. CBRE will provide monthly dashboards so you can track progress.

Step 5 - Conduct a quarterly review with your account manager to adjust service levels, add optional growth services, or renegotiate fees based on performance.

By following this roadmap, landlords can ensure a smooth shift to the enhanced model and quickly see improvements in cash flow and tenant satisfaction.

Tip: Keep a simple spreadsheet of your pre-transition metrics. When you compare them to the post-transition dashboards, the impact becomes crystal clear.

Future Outlook: Long Island Small-Unit Market in 2025-2026

Long Island’s multifamily market is projected to experience a 2.8 % rent growth annually through 2026, according to a report by RealPage. Rising rents create upside potential for owners who can keep units occupied and well-maintained.

Tenant expectations are also evolving. A 2024 survey by Apartment List found that 57 % of renters prioritize online maintenance requests and rapid response times over lower rent.

Regulatory changes are on the horizon as New York State tightens energy-efficiency standards for buildings constructed before 2000. Small-unit owners who adopt AI-driven predictive maintenance will be better positioned to meet compliance without costly retrofits.

Masotto’s strategy - centered on modular services, technology, and local on-site teams - aligns with these trends, giving landlords a competitive edge as the market scales.

In practice, owners who adopt the new model could see vacancy drop to the Long Island average of 4.8 % and NOI rise by 3-5 % within the first 12 months, positioning them for sustainable growth as portfolios expand.

Looking ahead to 2026, analysts at JLL predict that landlords who integrate AI-enabled maintenance will enjoy a 12-month average reduction of 15 % in emergency repair costs, further boosting profitability.

FAQ

Below are the most common questions from Long Island owners as they evaluate the new service bundles. Each answer includes practical details to help you decide whether the changes fit your portfolio.

What is the new fee structure?