DAN BELLOWS
TOP PROPERTY MANAGEMENT TRENDS 2019 Sydgan Corporation
Introduction Real estate covers many topics, from investment to sales. It also covers property management. This billion-dollar industry changes with the market and technology. It is imperative that property management companies stay on top of the latest property management trends to ensure all properties are completely leased, are well-maintained and in compliance with government regulations.
Also, property management staff have more responsibilities than in recent years. They must handle branding, security, renovations, taxes ‌ etc. It is no longer simply collecting rent and trash removal. To stay proactive, these companies must be aware of the latest trends. Let’s take a look at the top three that will have an impact on the bottom line this year.
Attracting & Retaining This involves a number of factors, such as communication, marketing and maintenance. However, demographics is a key factor. Millennials make up the majority of the tenant market today. They expect the latest technology in their homes (e.g. digital thermostats), and the first view of a rental property they see is on the property management’s website.If the website is not updated and easy to navigate, you have lost them as prospective tenants.
Also, rent is always a concern for both the tenant and the property management company. According to Multifamily Executive, the “average rent growth is projected to moderate� this year. Thus, property managers will need to find new ways to maintain operational performance while reducing costs.
Rent vs. Buy A booming economy means new construction. This poses the question: Should I rent or buy? With new construction, technology can be easily incorporated into the design. New properties can offer cloud services, smart appliances and better security. Many of the buildings are mixed-use spaces, with retail on the ground floor and apartments above. However, older buildings offer quality construction, more character and have lower rents (depending on the location). They also provide flexibility in terms of short and long-term leases.
Technology Aside from the technology for units, there are new software packages and apps, such as Buildium and AppFolio, that make onboarding, accounting, tenant screening, online payments and business metrics more efficient and faster. The use of blockchain in sending and receiving sensitive documents will speed up the leasing process as well as provide an alternate form of currency for paying rent. Also, the software will give staff and landlords a better view of how their properties are faring in the market and to automate their business.
Although these three trends are steadfast, they will be modified by changing factors in the market each year. Technology is constantly evolving, affecting the way we live. Thus, renters will expect properties and management practices to adapt to it. Also, there will always be trends that affect property management, and property managers must up their game to stay on top of them.
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