By: KeyCrew Media

Teddy Abdelmalek recently shared a LinkedIn post that generated significant engagement across the student housing sector. The Senior Vice President of Business Development at HH Red Stone described an unusually candid conversation with an asset manager, revealing frank discussions behind closed doors about property performance, management expectations, and industry challenges.

While Abdelmalek didn’t disclose all the specifics publicly, the conversation highlighted persistent tensions among asset managers, property owners, and third-party management companies over performance standards, fee structures, and accountability.

The Reality Behind Conference Room Doors

The student housing industry often presents a polished front at conferences and in public forums. Asset managers and property management companies maintain professional relationships built on quarterly reports and annual reviews. But private conversations reveal different dynamics.

“It was a really open and candid conversation,” Abdelmalek reflects. “The engagement we saw on LinkedIn showed people wanted to understand what these discussions actually look like.”

These frank exchanges matter because they expose gaps between what asset managers expect and what traditional property management delivers. Questions about why properties underperform despite strong markets, why turnover remains high despite competitive compensation, and why resident satisfaction scores plateau despite amenity investments dominate these conversations.

Growing Demand for Management Accountability

The discussion Abdelmalek shared resonates because it addresses an industry-wide shift: asset managers increasingly demand accountability beyond simple occupancy metrics.

“Asset managers are looking at the full picture now,” he explains. “They want to understand not just whether beds are filled, but whether the property is actually performing economically, whether residents are renewing, and whether operational efficiency is improving.”

This evolution drives HH Red Stone’s approach to third-party management. After managing its own portfolio exclusively for a decade, the company entered the third-party space with the conviction that traditional management models needed disruption.

“We’re not going to take on properties just to collect a fee,” Abdelmalek states. “We’re looking for owners and asset managers who think as we do, who understand that when the property succeeds, we both succeed.”

The Fee Structure Conversation

One recurring theme in asset manager conversations centers on management fee structures that don’t align incentives. Traditional models charge 3.5-4% of gross potential rent regardless of actual performance.

“Why should an owner pay full management fees on a property that’s only 80% occupied with unchecked expenses?” Abdelmalek questions. “That’s the conversation asset managers are having internally. They’re recognizing the misalignment.”

HH Red Stone structures agreements differently, combining base fees with performance incentives triggered when properties achieve budgeted NOI. This model creates genuine alignment between management compensation and property performance.

“Asset managers appreciate this approach because it demonstrates we have skin in the game,” he notes. “We’re not just managing the property. We’re invested in its success.”

What Asset Managers Actually Want

Through conversations like the one Abdelmalek shared, several themes emerge consistently. Asset managers want partners who understand that property success requires capital investment, who can articulate clear strategies for improvement, who respond quickly to issues, and who measure what actually matters.

“They want to know their property is being treated with the same attention we’d give our own assets,” Abdelmalek explains. “That’s not a high bar, but surprisingly few management companies actually operate that way.”

This creates opportunities for operators willing to challenge conventional approaches. Asset managers frustrated with status quo management increasingly seek alternatives that demonstrate genuine commitment to performance.

The Transparency Advantage

Abdelmalek’s willingness to share these candid conversations publicly reflects broader industry’s need for transparency. Too often, asset managers, owners, and operators maintain pleasant professional relationships while harboring private frustrations about performance gaps.

“The engagement on that post told me people are hungry for honest dialogue about these issues,” he observes. “Everyone faces similar challenges, but we don’t always talk openly about them.”

This transparency extends to how HH Red Stone approaches potential partnerships. The company conducts thorough due diligence before taking on properties, ensuring alignment on investment philosophy, performance expectations, and operational standards.

“We’ve walked away from opportunities where we didn’t believe the fundamentals were in place for success,” Abdelmalek reveals. “Asset managers appreciate honesty upfront rather than taking on a property and underperforming.”

Industry Evolution

The candid conversation Abdelmalek shared signals broader industry evolution. As student housing matures as an asset class, stakeholders demand more sophisticated approaches to property management, clearer accountability structures, and genuine alignment between management compensation and performance outcomes.

“Asset managers are getting smarter about what questions to ask and what standards to hold management companies to,” he notes. “That’s good for the industry overall.”

For operators, this evolution creates both challenge and opportunity. Those clinging to traditional models face increasing pressure. Those willing to embrace performance-based structures, transparent communication, and genuine accountability find receptive audiences among asset managers tired of conventional approaches.

“The conversation continues,” Abdelmalek concludes. “And the more openly we can discuss these challenges, the better solutions we’ll develop.”

Teddy Abdelmalek is Senior Vice President of Business Development at HH Red Stone. HH Red Stone is the property management arm of HH Group, managing approximately 10,000 beds across multiple asset classes, including student housing, multifamily, affordable, and mixed-use properties nationwide. After a decade of exclusively managing HH Group’s owned portfolio, the company launched its third-party management vertical to serve other owners with the same institutional-grade approach it applies to its own assets.

Disclaimer: “Metrics mentioned in this article may vary based on market conditions, property performance, and other individual factors.”