5 Property Management Industry Trends for 2024
To thrive in the real estate industry, it’s critical to stay on top of rapid changes, understand the economic landscape and market demands, and most importantly, embrace the advanced technology that is now ubiquitous.
We’ve rounded up the top property management industry trends for 2024 so you can take advantage of these industry shifts and run your business more efficiently.
5 Property Management Industry Trends to Watch for in 2024
The property management sector is changing fast, and the key to achieving efficiency, sustainability, and an enhanced user experience lies in staying ahead of the trends for 2024. That’s exactly what we’re focusing on.
Growth Strategies Are to Be Changed
Businesses always aim to grow, and the property industry is no exception. However, facing rising property costs, higher interest rates, and economic uncertainty, property management organizations need new ways to expand. In the past, growth meant attracting more clients or increasing transactions, but today’s landscape is different.
In 2024, the property management business, while still dedicated to customer service, will also emphasize the following for additional growth:
- Acquiring or constructing new properties
- Diversifying the types of properties managed
- Expanding the geographic reach of properties
- Purchasing portfolios from other companies
Expenses Are Going Up
The increasing expenses in real estate taxes, insurance, utilities, equipment, labor, and property acquisition pose a constant challenge for property management companies and their clients.
To meet this challenge, it’s critical to focus on efficient business practices and explore new revenue streams. In addition, there’s the ongoing challenge of demonstrating value to rental property owners who, faced with rising costs, may consider managing their properties independently.
So, in 2024, the key focus should be on handling operating costs and enhancing business efficiency. This isn’t just a challenge; it’s also a chance for growth.
Competition Is Getting Tougher
With a surge in investors, realtors, and large real estate firms entering the property management market, the competition is intensifying. In the U.S., there are approximately 326,000 property management companies. The market size was $19.87 billion in 2022 and is projected to reach $43.21 billion by 2030. Given this competitive landscape and the industry’s evolution, smaller companies will need to work harder to differentiate themselves.
A strong differentiator is a dedicated commitment to exceptional service. Whether it’s a prompt response to a tenant or property owner’s request or something else, it’s a commitment that stands out.
However, the challenge of attracting new clients and growing the property portfolio is still pressing. To meet this challenge, property management companies can leverage industry-specific software solutions. These tools not only streamline and automate the process of finding and managing clients but also enhance the services provided to existing clients.
More Automation and Technology Adoption
In today’s landscape, staying competitive means embracing automation for tracking property conditions, maintenance, and lease/sale terms. Utilizing advanced software, such as all-in-one property management software for landlords and tenants, is the way to go. Such software solutions not only address the need for greater efficiency but also help attract qualified property managers. Additionally, if you’re looking to grow your team, you can create an applicant tracking system that simplifies the hiring process and allows you to focus on crucial customer service tasks without distractions.
The shift toward a technology-driven property management industry is no surprise. The study indicates that the property management software market is anticipated to grow at a CAGR of 13.1% from 2023 to 2033, exceeding $15 billion by 2033. With intricate interactions among market participants, there’s a demand for technological solutions to streamline these processes. An effective platform should ensure data accuracy and consistency while covering aspects such as rent collection, tenant communication, maintenance requests, and various inspections.
Implementation of technology makes it possible not only to optimize operations but also to improve the quality of service for tenants. Property management software plays a critical role in reducing processing time and labor costs by automating manual tasks. This, in turn, translates into increased profits and higher customer satisfaction. In addition, a remarkable 95% of property owners are comfortable doing business with their property managers online.
Data analytics adoption is another groundbreaking trend related to technology. It helps property managers make smart decisions and boost efficiency. By analyzing market trends, rental prices, service patterns, and tenant behavior, property managers can make data-driven decisions. This means optimizing rental rates, predicting maintenance needs, and offering personalized tenant service.
Tenant screening is also of great importance. Tools for background checks, including credit history, criminal records, and rental references, offer an added layer of protection. They ensure properties are leased to trustworthy individuals.
Tenant-Centric Approach
Enhancing tenant service is crucial. It goes beyond maintaining properties and responsive communication. Property managers should provide tech solutions, allowing tasks like mobile rent payments, virtual property tours, and service requests online.
Meanwhile, when it comes to property maintenance and repair, a proactive approach is required. It not only minimizes repair time and possible costs but also boosts tenant satisfaction while safeguarding the overall value of the property.
A tenant-centric approach also includes a focus on energy efficiency – a top concern for both property owners and tenants. Smart appliances, loaded with cutting-edge tech and connectivity, empower property managers to track and manage energy usage in real time. This not only cuts down on utility expenses but also promotes environmental sustainability, drawing in eco-conscious tenants. Attracting reliable and responsible tenants is a crucial factor for the success of any property management company.
Final Words
Now that we’ve covered the major property management trends for 2024, what’s the takeaway? Adaptability, efficiency, and top-notch customer service are the crucial elements shaping the success of property management companies in the coming years. However, the true game-changer lies in embracing technologies like all-in-one property management software.
It’s time to reconsider property management, shifting the focus from traditional methods to those aligned with the current global landscape and client expectations.