In order for any property manager to stay ahead of their competition, they will need to be aware of the industry’s current trends, setbacks, and opportunities. This is how property managers can set themselves apart and continue to succeed.
In this blog post, we will go over five trends we anticipate seeing in 2024 in the property management industry. From new ways to grow your business to retaining residents, these are the trends to look out for in this coming year:
1. Using Alternative Growth Tactics
Many property management companies are currently on the lookout for new and innovative ways to grow and their current plans for expanding their portfolios are outpacing many property owners.
Many property managers are placing a focus on recruiting new owners to work with. They are also encouraging their current clients to consider investing in more rental properties.
In addition to growing their clientele, many property management companies are beginning to purchase investment properties of their own. Some are even acquiring other company’s portfolios in order to expand their range of property types that they can work with and areas they can serve.
2. Elevated Costs and Changing Regulations
Rising costs everywhere are continuing to place a strain on property management companies and their clients. Whether it’s increased insurance premiums and property taxes or the cost of materials and labor, inflation is taking a toll on everyone. So, many property managers are taking this as an opportunity to increase their revenue.
With the elevated costs, there are new opportunities to find additional revenue sources. Whether it is expanding the areas you serve, offering a new range of services, or managing new types of properties, there are currently many ways that property management companies can earn more than ever before.
In fact, real estate may even become more profitable over the next year. While cash flow may go down, rental properties may be a more lucrative asset for investors, even as interest rates are predicted to continue to stay the same.
Since the rental market is currently slower than usual, there are more accidental, or DIY, landlords than ever. This is a huge opportunity for property management companies to grow their clientele and expand their services.
Further, regulations regarding rental properties are changing more and more, so it is becoming even more crucial that landlords have an expert on their side to help them navigate the industry.
3. Fierce Competition
Property management companies of all sizes are facing competition from real estate brokerages as well as larger management firms. This is all due to the slowing sales market.
As a result, some smaller property management companies are offering their clients a more personalized and comprehensive customer service experience in order to truly compete against larger companies.
As the real estate market changes over time, many real estate agents and brokers will try to expand into property management. While it will take away opportunities from property managers, it can also do the opposite.
Due to the general inexperience and lack of expertise that many real-estate-agent-turned-property-managers will be facing, smaller and more established property management companies can stand out from the crowd and have their time to shine.
4. Focus on Resident Retention
Many property management companies are devoting more and more resources to retaining tenants. This is primarily due to the rental market cooling down and the supply of new builds growing.
In order to stay ahead of the competition, you’ll need to make your rental properties more appealing to current tenants. These efforts include offering tenants high-quality services, renovating or upgrading units, and limiting rent increases for existing tenants.
By putting more effort into keeping tenants long-term, property managers are able to maximize their profits, keep their occupancy rates at healthy levels, and make positive impressions on their clients.
However, there also needs to be a higher focus on thorough tenant screening to ensure that you always choose tenants who can afford to stay in the home long-term.
5. Using Advanced Technology
Technology has never occupied such a pivotal role in property management companies’ operations – or in the employee and customer experience – as it does right now. Here are some of the ways in which technology is impacting property management as we know it:
Sustainability
Sustainability has begun to gain popularity among property managers. Property managers are now getting LEED and BREEAM certifications, and many organizations are implementing greener practices into their day-to-day operations as they place an emphasis on energy efficiency, reducing waste, and prioritizing renewable energy sources.
Smart Buildings
In the new year, many property managers will start to see smart buildings become the new normal. The goal of smart home technology is to prioritize efficiency and comfort in rental homes, in addition to making the job of a property manager more convenient.
Proactive Maintenance
Property managers can now use data analysis to anticipate and take care of rental property maintenance. With this approach, property managers can reduce maintenance costs, extend the lifespans of equipment, and easily stay on top of repairs.
Remote Property Management
In the aftermath of the pandemic, many property management companies have kept an emphasis on using technology to monitor their properties from a distance. This enhances efficiency and responsiveness, allowing property managers to address tenant needs and property conditions quickly and easily.
Software
Many property management companies are using software to help them handle everything from maintenance to rent collection. Property management software can help you save time and stay organized without the hassle, as everything is automated and accessible from anywhere, at any time.
Implementing software into your standard business practices can be an absolute game changer for any professional property manager looking to spend less time on the more tedious tasks that come along with the job.
How Blanket Can Help
Using software for your property management company’s daily operations can be the difference between a business that stays ahead of the curve and one that remains stagnant.
However, choosing one that works best with your company’s needs and then taking on the task of uploading all of your business information can be a long and difficult undertaking, especially if you have a long to-do list to attend to.
That’s why Blanket automatically connects with any property management software you already use, instantly populating the platform with information that you’ve already uploaded. There is no data for you to enter, and nothing for you to set up. We will do it all! All you have to do is turn it on, and you will be good to go.
The Dashboard
Blanket automatically collects your client’s property data from your software and presents the updated information that matters most, including returns, home values, expenses, and overall performance metrics in a convenient dashboard.
This means that you will know exactly where each property stands and what to do next in order to help them succeed.
- Data: Blanket uses data and market analytics to show you the insights that you need to know, such as the best-performing rental properties, any unusual expenses that may pop up, and more. In short, you can rely on Blanket to keep you informed!
- Transactions: Rental property owners can see every rent payment that has been received and every expense paid in real-time. You can also get alerts that help you stay on top of upcoming bills, take care of taxes, and celebrate an incoming rent payment.
- Documentation: Every document that is related to your rental property will be automatically uploaded to Blanket’s system, where it will be organized and made available from anywhere at any time.
Whether you need transaction documents such as closing statements and receipts or you’re looking for ongoing paperwork such as lease agreements, inspection reports, and property tax bills, Blanket has got you covered.
The Marketplace
With the Blanket Marketplace, rental property owners can do it all from one simple place. Whether it’s checking pending listings, publishing new listings, signing documents online, or accepting deposits, it truly could not be easier! You can even view, accept, or reject offers.
With Blanket, you can give your clients exclusive access to off-market properties both from your portfolio and elsewhere. You can share information that they won’t find anywhere else, such as actual rent, ongoing expenses, home values, and rental histories.
You can even share market analytics such as demographics, average home prices and school ratings with them. Your clients will love being more informed than ever!
Bottom Line
So, if you are searching for a way to make your life as a property manager more convenient, all while keeping up with this year’s biggest trends in real estate, look no further than Blanket.
