Q&A with Taylor Verhaalen, President of Stout Management Company

From Las Vegas to Reno, Nevada’s real estate market is evolving at a pace that has industry leaders watching closely. Few understand its opportunities and challenges better than Taylor Verhaalen, president of Stout Management Company. With decades of experience managing multifamily communities across both Northern and Southern Nevada, Verhaalen has a front-row seat to shifts in renter demand, investor interest, and property innovation.

We sat down with him to discuss where the market is headed, why retention is becoming a critical performance driver, and how staying local gives Stout an edge in both regions.

What changes has Nevada’s real estate market experienced that make it more sustainable and attractive to investors long-term?

Both Las Vegas and Reno are growing, but for different reasons. Las Vegas continues to benefit from tourism recovery, new entertainment and sports venues, and job creation in sectors like technology and logistics. Reno’s growth is driven by an influx of manufacturing, distribution, and tech companies, as well as people relocating from California.

Las Vegas has also diversified significantly. The city’s economy is no longer built solely around hospitality and gaming. Professional sports, large-scale entertainment events, and expanding industries like major healthcare, technology, and distribution have broadened the economic base. The cost of living and housing remains relatively affordable, and with no state income tax, people can live here and work remotely while keeping more of their income. It’s a combination that continues to make Nevada an appealing place to live and invest.

Retention has been a recurring theme in the industry this year. How are you approaching it?

Tenant retention is extremely important right now, especially as rent growth softens a bit. It’s almost always more advantageous to keep an existing tenant than to bring in a new one.

At Stout, we focus on consistent, high-quality service. That means handling work orders quickly, keeping office teams accessible, and hosting property events that build a sense of community. We reach out earlier than we used to about renewals so we can address maintenance needs or concerns before a lease ends. A tenant who feels heard and cared for is much more likely to stay.

We’re also using renewal concessions more strategically. Sometimes that means modest rent increases or offering an incentive to stay. The key is balance. There are large front-end concessions available across the markets for new move-ins which are enticing. At times current residents expect something from us, considering what they can get to move. You might sacrifice a little short-term rent growth, but if it keeps occupancy strong and reduces turnover, it pays off in the long run. In Nevada’s current environment, retaining quality residents is one of the smartest moves an operator can make.

What trends are you watching most closely in both Northern and Southern Nevada?

We are closely monitoring our prospect traffic and quality of applicants.It’s taking more applications today to find qualified tenants than in past years, largely due to changing employment conditions and higher living costs. This is why retention and resident stability are top priorities.

We’re also watching supply levels. The added inventory creates downward pressure on occupancy and also keeps concessions high in competitive markets as those properties strive to hit lease-up time frames. This impact not only affects the new build sector but has a trickle down to all existing product as well. Deliveries have slowed a bit which hopefully helps our underlying fundamentals and demand going forward. 

Inbound migration remains strong in both regions, and resident expectations are evolving. People want service, convenience, and community. That’s why we’re investing in amenities and technology that enhance daily living while strengthening engagement.

How does staying local give Stout a competitive advantage?

Local knowledge is our biggest differentiator. Our executive team and regional managers live and work here, and we understand the nuances of each submarket—whether it’s Henderson, Summerlin, or North Las Vegas. Each area has its own demographic and leasing trends, and we tailor our strategies accordingly.

Our clients look to us to help build and validate their business plans. In our current market the typical value-add deal is tougher to come by and it takes intimate knowledge of this market and product to advise on whether a target deal is a good candidate. Other times we can provide insight to where operational efficiencies may be the path the pushing returns. Often we’ve run target acquisitions in the past and have intimate knowledge of the asset from experience. 

Our maintenance teams are local and mobile, which helps us handle work orders quickly and cost-effectively. That responsiveness matters. Our relationships with local vendors and supplier partners also give us elevated response times, service and pricing based on decades of working with them.

In Reno, our growth has been relationship-driven. One successful property in Sparks led to additional opportunities in Reno’s core districts. Because we’re based here, I still walk properties and talk directly with clients. Our COO still visits sites and meets with teams. That level of personal involvement and oversight is something larger, national firms often can’t replicate.

What role does technology play in your operations, and where do you draw the line?

Technology has been a major driver of efficiency, especially for resident communication, maintenance, and leasing. Residents can pay rent, submit service requests, and renew leases online. Our maintenance teams use iPads to track and complete work orders in real time, improving response times and documentation.

We have also begun introducing conversational AI across several properties. The system takes every incoming call and can answer questions about pricing, amenities, and availability. If it does not know an answer, the call is routed to someone on-site, and the AI learns from that exchange for the future. It helps schedule tours, screen applications, and process work orders by collecting details for maintenance teams to follow up on. We also use a text-based chatbot to manage resident and prospect inquiries in real time. The type of and velocity of inquires are hard to manage these days. Introducing AI allows our prospects and residents to get easy straight forward information. Our teams teams are then pulled in for situations where they thrive. Showing the product, explaining the benefits, check on customer services, real problem solving and assistance where a personal touch is necessary. 

It allows our teams to stay responsive around the clock and reduces the workload on on-site staff. Over time, this type of automation can make it more feasible to manage smaller communities, those under 100 units, because fewer on-site employees are needed to maintain a high level of service.

At the same time, we are careful not to over-automate. Leasing calls and property tours are still handled by our on-site teams. No technology can replace someone who knows the community, can answer questions personally, and can build a connection face-to-face. Our goal is to use technology to streamline operations and improve service, not to replace the people who make residents feel at home.

Where do you see the biggest opportunities for multifamily investors in Nevada right now?

Workforce housing is a major opportunity. Class A product will always have its place, but there’s growing demand for attainable housing that serves middle-income renters. In Reno, updating older properties to meet modern standards can generate strong returns. In Las Vegas, mixed-use developments near employment centers are performing well because they align with lifestyle preferences and local job growth.

Investors also need to do their homework. Interest rates remain high, and there’s a gap between what buyers want to pay and what sellers expect. The investors who succeed are those who understand the local markets and take a long-term view—buying at a good basis today, then improving the asset strategically over time.

What do you think Nevada’s market will look like five years from now?

I think it will be healthy. The state goes through natural cycles of growth and pause, but the fundamentals are strong. Over the next five years, we’ll see continued diversification in employment, from healthcare to technology to retail, and more community-integrated development.

Las Vegas will continue expanding beyond hospitality, and Reno will remain a strong destination for businesses and residents relocating from other states. Rental housing demand will stay steady, and operators who combine technology with genuine service will lead the market.

Any thoughts on expanding beyond Nevada?

Not right now. We manage about 9,000 units in Southern Nevada and continue to grow in the north. Our focus is on what we know best. I serve on the board of the Nevada State Apartment Association, so we’re closely involved with both local and national initiatives.

Nevada remains a landlord-friendly state, and our success comes from understanding its submarkets and legislative landscape. We’ve been approached by clients about expanding elsewhere, but the opportunity here is still strong. If we ever did look beyond Nevada, it would likely be to a similar market, like Arizona, with comparable growth patterns. For now, we’re focused on doing what we do best right here at home.

About Stout Management Company

Founded in 1974, Stout Management Company is one of Nevada’s leading full-service property management firms, specializing in multifamily, affordable, and mixed-use communities throughout Las Vegas and Reno. The company oversees more than 9,000 units statewide and is known for its strong local roots, client partnerships, and commitment to resident satisfaction.