The past few years have been hectic for real estate investors and property managers throughout the United States. With high-interest rates, inflated home prices, and navigating through Covid-19 procedures, it’s been a learning curve for everyone involved. As we enter a new year, more changes are on the way. Read along as we discuss property management industry trends to watch for in 2023.
Contents of This Article:
- Understanding Property Management
- 2023 Property Management Industry Trends
- Find a Reliable Property Manager Today
Understanding Property Management
Before looking into property management industry trends for 2023, it’s essential to understand what it is. Property managers are responsible for the daily oversight of rental properties. Management tasks differ for each property type but generally include ongoing maintenance, day-to-day repairs, and general upkeep of rental properties.
Types of Property Management
Property management in Richmond isn’t limited to one property type or management style. Instead, most management companies offer services over a wide range of property types. The four main types of property management include the following:
- Residential Property Management- Residential property managers manage single-family homes, vacation rentals, apartments, multifamily homes, townhouses, and more.
- Commercial Property Management- Commercial property managers look after buildings like hotels, retail properties, offices, and co-working spaces.
- Industrial Property Management- Industrial property managers are in charge of manufacturing facilities, warehouses, distribution facilities, and more.
- Special-Purpose Property Management- Properties that don’t fall into the categories above may include theaters, sports arenas, schools and universities, resorts, and more.
Understanding the different types of property managers can help further understand industry trends and their meaning. Next, we’ll review some of the top projected trends for 2023.
2023 Property Management Industry Trends
The real estate and property management industries have undergone several changes in the past few years. However, as we adjust to a post-covid era in 2023, there are new changes and challenges to pay attention to. Here are some of the vital property management industry trends for 2023.
- Portfolio Growth
- Demand for Management Services
- Better Marketing Strategies
- Competition in the Industry
- Tenant Experience as a Priority
- More Use of Technology and Automation
- Energy Efficiency
One of the leading industry trends predicted for 2023 is portfolio growth for investors and property managers. As the world slowly recovers from the pandemic, we will see property management return to a normal state of business.
Investors may feel more confident buying new real estate as prices drop and mortgage rates slowly decrease. More property managers plan to grow their portfolios and take on more rentals in 2023.
According to a survey done by Buildium, smaller property management firms plan to take on more rentals. Additionally, many smaller firms plan to put tenant experience first and provide a positive experience for customers and other professionals working alongside them.
In the past few years, it’s been hard for property managers to scale up due to labor shortages and high home prices. However, as prices regulate and labor markets improve, growth may come more quickly in 2023.
Demand for Management Services
Along with portfolio growth is a higher demand for property management services. Before the pandemic, many smaller real estate investors strived to keep costs low and didn’t find the need for third-party management.
However, more small-portfolio investors and accidental landlords are starting to see the value in delegating management tasks to reduce stress. After all, property managers ensure that best practices are used for each rental and tenant.
As more investors look for management help, small property management companies are under pressure to prove the value of their services.
Better Marketing Strategies
Property managers constantly look for new marketing trends to solidify their brand and create long-lasting tenant relationships. Some property management industry trends for 2023 include content marketing, mobile-friendly websites, and social media.
A good property management website offers value to its visitors with informative and engaging content. You can achieve excellent results by using keyword research and search engine optimization (SEO) to write different forms of content.
Another focus for property managers is creating mobile-friendly websites. Most people are on the go these days, so making it easy to navigate your website with a mobile device can bring more traffic to your services.
Finally, social media is a great way to promote your brand and management services. Sharing authentic reviews and industry news on social media can attract higher-quality tenants and develop stronger relationships with other property owners.
Competition in the Industry
With more investors expanding their portfolios and increasing demand for property management, there will be more competition in the industry. As such, smaller property management firms will need to work hard to differentiate themselves from their larger competitors.
After all, smaller companies have less room to compete on prices than larger firms do. So, focusing on personalized, genuine customer service is important to set yourself apart from other firms.
That said, it’s challenging to maintain current relationships while taking on new clients and properties. However, many property management companies are finding value in technology to help with several tasks.
Tenant Experience as a Priority
Paying attention to tenants’ wants and needs in a rental is important for landlords and property managers. After all, you want to provide the best experience possible, so they keep renting your property. However, with more people looking for rental housing instead of buying homes, expectations have changed over the years.
For instance, many renters look for properties with high-quality amenities. Some common expectations for most tenants include in-unit washers and dyers, high-speed internet, walk-in closets, and updated appliances.
While not all of these amenities are feasible, property managers can provide great experiences with effective communication and better tenant screening processes.
More Use of Technology and Automation
Innovative property management technology has been on the rise for several years now. Automation strategies help landlords and property managers with accounting, rental marketing, screening processes, rent collection, contracts, maintenance requests, and more.
However, as technology gets better, so do these processes. For instance, one of the most time-consuming tasks for managers is accounting and data entry. With accounting software to do the work for you, it makes the job quicker and easier.
Additionally, automation can make it easier for tenants and property managers with virtual tours, online rent payment options, contracts, and maintenance requests.
While it’s not necessarily a “new” trend, energy efficiency remains a top priority for investors and tenants. As the costs of goods and services continue to rise due to inflation, people are trying to save money anywhere they can.
Some common upgrades for rental properties include water-saving devices, smart technology for heating and cooling systems, and energy-efficient appliances. Not only are these attractive amenities for tenants, but they also help save money in the long run.
So, if you’re looking for high-quality tenants, marketing properties as energy-efficient is an excellent strategy.
Find a Reliable Property Manager Today
If you’re following this year’s property management industry trends, you know that there are some changes to look for in 2023. If you’re an investor looking to expand your rental business, you may want to consider hiring property management. Luckily, Bay Property Management Group has the expertise and dedication to help your business succeed.
We offer a wide range of management services, including tenant screening, rental marketing, maintenance, rent collection, and more. For more information about our comprehensive services in Baltimore, Philadelphia, Northern Virginia, and Washington, DC, contact BMG today!