Among the top property management industries, residential tenancy retention will be a priority in the coming years. The last few years have seen a decrease in demand for rental housing as students and travelers returned home. While this trend appears to be ending, there will still be challenges. Here are some trends to look out for in the coming years. Here are three trends to watch in residential property management in 2022:
Mike Bjorkman stated that The demand for skilled labor is rising, and the industry is seeing more consolidation. As a result, investment dollars are pouring into single-family rental properties. Meanwhile, the hot housing market is causing some property managers to sell their properties, which gives property managers a good opportunity to expand their portfolios. Despite these challenges, the future is looking bright for property management. Here are four predictions to make the industry even more profitable:
Increased energy and focus on customer relationships: Property managers are spending more time and energy focusing on building and maintaining strong customer relationships. This is in response to the increasing demands of rental owners and renters. A higher emphasis on finding and retaining great residents is a key revenue growth strategy for third-party property managers. In addition, increased use of technology will also increase efficiency in the industry. In fact, 30% of property managers say that technology will improve their operations.
Change in the industry: With the influx of new technology, the property management industry will have more competition among property owners. Large-scale operators will dominate the single-family market and boutique companies will have lower margins. Many larger companies will implement build-to-rent concepts at a higher rate, which involves renting out individual homes on a lot or neighborhood. The growth in this area will be driven by these changes.
For Mike Bjorkman While the property management industry has always been highly competitive, it remains a top priority for many companies. The rise of technology has increased the cost of operating a business. The cost of running a property can increase by as much as 20%. As a result, the growth of the industry is expected to remain flat or grow. The top property management companies are able to provide their services to a higher degree of complexity.
More communication with customers is an increasingly important trend. The use of software that allows landlords to communicate with tenants via email and chat is another trend that will continue to grow. While technology may seem like a boon to property owners, it can also lead to a decline in property values. In the meantime, the property management industry will continue to grow as technology advances and the demand for housing increases.
The role of a property manager is changing rapidly and undergoing a massive transformation. The industry is becoming more competitive. Its clients are becoming more sophisticated and demanding. As a result, it has become more important than ever to maintain human connections. While technology continues to enhance the productivity of the industry, it has the potential to drive growth. With more cities moving toward the suburbs, more families will be renting apartments and single-family housing.
Mike Bjorkman added that In addition to providing quality customer service, technology will also be essential for a growing number of investors and landlords. As the world ages, more people are choosing to rent instead of purchase. Whether a rental is affordable or expensive, the rental industry will be impacted by these changes. Moreover, a successful property manager will provide a more personalized experience for their clients. This is the future of the industry.
The current property management industry is undergoing rapid change. With the COVID-19 coming into effect, the full impact is yet to be seen. But five industry trends are already picking up speed now and will significantly affect the rental property industry in the next few years. These trends are virtual tours, online rent collection, and new generational values. While they may not have been present before, these will continue to be vital in the future.