In order to stay on the leading edge of the property management industry, real estate professionals must understand the biggest trends that are driving it. Shifts in real estate ownership and management can ultimately impact your property management business. Staying apprised of the trends allows you to make strategic moves and position your business for success.
Take a closer look at six key trends that are growing and shaping the future of property management.
1. Technology and automation
Perhaps one of the most exciting evolutions in property management is the growing availability of technology designed for the industry. Advanced software and automated services are simplifying property management tasks, allowing managers to conduct business more efficiently and grow their portfolios faster.
Tenants have come to expect a number of digital services already, such as virtual property showings, digital applications and online rent collection. But on the back end, property managers can leverage even more systems to make their jobs easier, including robust analytical tools, financial management programs, workflow automation and AI.
Keyrenter Property Management was born from the idea that automation and technology could help property managers provide better service to property owners and tenants. By opening a Keyrenter franchise, property managers gain access to a comprehensive suite of systems that allow them to scale their portfolios with less time and less stress.
2. High rental demand
The current state of the real estate market has resulted in opportunities for property managers. Due to high interest rates, home sales have slowed significantly. More households are choosing to rent rather than purchase a new home. This demand for rental units may lead to higher rental rates, which is encouraging for property owners.
Current property owners will need the assistance of a professional property manager to effectively lease and operate their units. Keyrenter’s property management expertise is easily applied to property owners both experienced and new. Our franchise owners add value by finding and securing reliable tenants and ensuring the long-term value of each property.
3. Better tenant experiences
In light of high rental demand and rising rental prices, tenant expectations have also increased. There is now a greater demand for positive renter experiences, both during the lease-up phase and throughout their rental period. Tenants expect good service when searching for a home, including prompt responses to questions, rapid screenings and approvals and clear communication. They also want more from the homes they rent, such as in-unit washers and dryers and high-speed internet. Tenants are often willing to pay more for these amenities.
Property managers and property owners must be aligned to deliver the best possible experience when finding, screening and securing tenants. Digital tools can help property managers streamline the tenant experience and deliver better service. Managers can also leverage lines of communication with tenants to communicate their expectations to owners and help them grow.
4. Renter migration
Recent and current events have driven renters to pursue rental homes in suburban or rural markets. Work from home and growing families have increased the demand for larger spaces and extra rooms, making single-family home or duplex rentals more attractive than small units in the city. Demand may increase for these types of units in quiet, family-friendly neighborhoods.
Keyrenter focuses its property management efforts on single-family homes, condominiums, duplexes, townhomes and small apartment buildings—not large-scale multifamily complexes. This allows our franchisees to avoid competition with larger property management companies and build a sustainable portfolio of units.
5. Growth of intentional investors
According to a Buildium report, 52% of rental property owners consider themselves “intentional investors,” compared to only 24% who call themselves “accidental landlords.” Over the past few years, the number of accidental landlords has dwindled, and the number of intentional investors has grown. This shows that more property owners are acquiring homes with the expressed intention to rent them out.
Intentional investors understand the need for efficiency in the operation of their properties. To maximize ROI, they want a property management partner who can keep their units leased and maintained long-term, find ways to increase profitability and advise them in their real estate strategies. They’re also more likely to own multiple properties, which would require additional time and effort to manage alone. Professional property management franchises like Keyrenter are the perfect partners for these investment-minded owners.
6. Expanded role of the property manager
Today’s property managers are taking on an expanded role in their clients’ long-term real estate investment strategies. Professional property management services are growing beyond rent collection and tenant screenings to include strategic advisement. Managers might offer suggestions on how to upgrade the property for higher value or provide insight into the real estate market to assist in real estate acquisition.
By encouraging and supporting their existing clients’ growth plans, property managers can expand their own portfolios with additional units. It pays for property managers to become experts in their local real estate market and stay apprised of rental trends to best advise their owner clients.
Keyrenter keeps you at the forefront of property management
Keyrenter Property Management gives aspiring franchise owners the tools they need to build a thriving property management business in less time, with less stress. Being real estate experts ourselves, we’ve built a business model that equips you with the trend insight, marketing support and digital tools you’ll need to secure clients and administer top-quality service.
Interested in building your own property management empire? Inquire today about Keyrenter’s property management franchise opportunity.