If you want your property management company to flourish in 2020, I recommend you check out some of the key trends expected to hit the industry next year.
Property Management Industry Trends 2020
This is a booming field of business which is growing every day. With so many new companies trying to make a name for themselves in rental property management, you need to keep tabs on the opportunities and threats that may be coming your way so that you can always stay ahead of the game. Take a look at the key property management trends for next year so you’ll be ready to grow your business.
1) Technology Trends
The digital scene is really making an impact on the real estate industry as a whole. Investors, landlords, agents, and property managers are all capitalizing on these opportunities that come with the new tech hitting the market. From the value-add properties that smart technology amenities have on rental units, to cloud sharing features making it easier for landlords and tenants to connect, there’s a lot out there. These days, tech plays a role in every part of the property management industry. A couple of aspects tech will cover include:
- Landlord communication
- Energy conservation
- Social communities
Probably one of the biggest market trends we’re seeing is automation in the property management industry. This is the ability to streamline payment processes electronically. If you’re still processing each invoice and rent payment manually, you’re wasting a lot of valuable time. Confirming rent payments and juggling the paperwork for your own expense payments (insurance, maintenance, taxes, etc.) is very time-consuming. Automation is going to be a necessity in the property management industry 2020.
2) Demographic Focus on Gen Z
Yes, millennials still make up most of today’s tenant market. But being a property manager means looking out for future shifts in the tenant base. Gen Z is expected to grow from 8 million to over 55 million in the next decade. We mention this immediately after talking about technology trends in the property management market for a reason. Gen Z has lived their entire lives knowing and using technology and the internet. When they start to make up a good chunk of the labor market and tenant base, property managers need to be equipped to meet their standards. For now, you should work on updating your website and offering tech solutions for your tenants, such as:
- Online payments
- Free Wi-Fi
- Charging and docking stations
- Keyless door entry
- High tech fitness centers
- Outdoor heaters and fireplaces
Even millennials are becoming tech-savvy and sometimes won’t settle for the old-fashioned way of doing business, so start upgrading your amenities.
3) New Players Entering the Game
As real estate investment gains more and more momentum with beginners buying up rental properties and managing them themselves, established property management companies might need to keep an eye out. A lot of rental property owners are realizing that being a landlord is a business. Operating this business themselves, without the help from off-site managers, gives them a good segway into residential property management. Some beginner real estate investors like the feel of running a business and eventually start expanding by growing their portfolio. Before you know it, there’s new competition. So as the real estate investing industry grows, property managers are recommended to keep an eye out for the new competition in 2020.
4) Property Management Marketing
Have you noticed a recent focus on new marketing strategies in the property management industry? Property managers are trying a lot of new marketing techniques in efforts of expanding their business and gaining new clients. A lot of this focus has been on digital marketing and the many ways property managers can use the internet to their advantage. It’s a much cheaper way to reach out to more potential property management clients.
One of the best ways to do this is to start producing informative content regarding important topics for people in real estate. By answering some of the widely asked questions by your own clients, but having this answer available on an easy-to-reach blog, you can generate traffic to your property management website and company. Most people try Google if they have a question about anything. By providing a blog, infographic, or video answering that question, it’ll show this potential customer that you know what you’re talking about. I highly recommend you study SEO optimization for any content you post online. This will higher your chances of ranking high in any search engines. This kind of marketing is becoming a popular trend in the property management industry.
5) Property Management Software for Lead Generation
Lead generation has and always will be the most important part of growth for any property management business. New software has opened up the industry to new avenues of generating property management leads. I’ll tell you where you can find the best property management tools to use in 2020- Mashvisor.
Data isn’t just an important part of making smart real estate investments; it’s also an important part of running a successful business in the property management industry. This is definitely a trend you’ve probably already started to notice. To catch up, and even get ahead of the game, Mashvisor’s got the ultimate platform for property managers- Mashboard.
What can Mashboard do for property managers? The main function is that it helps property managers identify the right investment property for their clients and get more properties under their management. Learn more about the details of this tool here.
6) Apartment Rental Demand Will Stay High
Rental demand is an important trend in the property management industry. Despite a 3 percent increase in the average rent nationally, over 80 percent of renters still believe that renting is far more affordable than owning. We’re seeing just how high demand for rental units has become with an 11 percent increase in apartment demand this year, and even more demand projected for next year. Affordability is a big issue for many people across the nation. So even though rent prices have been increasing year-over-year, demand for rental units is still up.
Currently, we’re seeing some of the highest demand in the nation’s largest cities, most notably, Dallas/Fort Worth, Chicago, Houston, New York City, and Washington, D.C. Apartment construction has been booming since 2014 to meet rental demand. This is important to know as a property manager. Rent prices play a big part in your revenue stream, so you should always keep track of the direction they’re heading.
Don’t forget to use Mashvisor’s services and data to further your property management career in 2020. To learn about your options for signing up for our services, click here.