As with many markets, the property management industry is set to experience some trends this year. Understanding these property management service trends would prove beneficial to both rental property owners and tenants.
Interesting Property Management Service Trends for the Year 2022
The COVID-19 pandemic certainly threw a wrench in everyone’s plans. But, it also affected the rental market in the United States. As per the 2022 Property Management Industry Report, the previous year saw an increase in the number of renters living in single-family homes. While this is partly due to rising housing prices, there is no denying the role the pandemic played.
Interestingly, some trends concerning single-family property management services emerged in the last couple of years. And, given the way the market is going, it is likely that these trends will continue this year, too. Here are the property management service trends owners and renters should know about.
1. More Owners to Invest in Rental Property
Surprisingly, many single-family rental owners are not landlords by choice. Some of them only came into property ownership through inheritance, while others were caught in different circumstances. Now, though, rental property ownership has turned into an attractive investment. Individuals and institutional investors alike are turning to the industry as a viable way to make money.
With the number of rental property owners increasing, the demand for property managers will spike with it. These owners want experienced professionals who know the local landscape like the back of their hands. They also want capable managers who can juggle a myriad of duties, such as collecting rent, answering tenant concerns, and maintaining the property.
In addition to this, property managers who can produce market-focused and comparative reports will be of high value. Rental property owners want to know how their investments perform in contrast to the larger market outside of the local scene. Such reports will give owners a better understanding of their assets and may encourage them to branch out.
2. More Preference for Virtual Tours
The COVID-19 pandemic saw both strangers and close friends alike keeping a safe distance from one another. As the illness could easily spread, business establishments either imposed occupancy limits or required social distancing. Some even halted operations entirely.
In the world of rentals, in-person property showings became less and less common. It no longer made sense, from a health standpoint, to show empty apartments and single-family homes to hordes of potential tenants. This created a safety issue not only for the property manager but also for the renters shopping around.
Pretty soon, virtual tours became the new normal. Virtual tours give potential renters an opportunity to view empty rentals without risking their health. But, even before the pandemic, virtual tours were already gaining traction. This is unsurprising considering how convenient they are. Sure, it takes some extra work, but virtual tours can save a lot of time and money for both parties in the long run.
3. A Bigger Need for Property Management Software
The pandemic might not have birthed the use of property management software, but it certainly played a role in popularizing them. People needed to communicate without meeting and use tools that supported remote management. Property managers turned to owner portals to keep in touch with tenants and their needs. This also allowed for a more streamlined approach to fielding requests.
Digital tools also opened the door to more timely reporting. It is now easier to track turnover rates, vacancy periods, and delinquencies. With such data available at the press of a button, property managers can focus their energy on making a difference.
On the side of renters, digital property management tools are a sign of modernization. The old, traditional ways no longer work for the new generation. Everything has to take place online without having to go through multiple channels to get things done.
4. A Higher Demand for Legal Services
One of the things most landlords can’t do on their own handles legal matters. In 2021, the CDC issued an eviction moratorium in high-transmission areas, which put many rental property owners in a bind. But, even with the moratorium lifted, there are still plenty of orders and laws that owners have to deal with.
A few states have been considering good cause eviction laws, which would limit the reasons a landlord could evict a tenant. And then there are rent control laws that can be hard to navigate.
Most landlords don’t have a background in law to handle these things alone. And the demand for property managers will likely increase as a result. After all, it is a part of a property manager’s job description to know the law and keep properties compliant.
Moreover, this knowledge could help owners make smarter decisions. They can advise owners on which markets are more attractive, such as those with fewer restrictions. This will give owners a higher chance of turning a significant profit.
5. Expected Immediate Action on Maintenance Requests
The COVID-19 pandemic forced much of the world to stay at home. As tenants spent more time confined in their homes, maintenance issues became increasingly apparent. It was no longer bearable to deal with a leaky faucet because they would have to hear the water drip all day long.
One trend that came out of this is the expectation of tenants for immediate action. Once they submit a request or complaint, they expect their landlord to get the job done at the soonest. Tenants also notice the problems of their residence more, leading to more frequent requests. Plus, there is a higher need for communication, as requests can’t go unanswered for a long period of time.
Not all landlords have the time or patience to deal with such requests. As such, property managers will step in. The big challenge, though, comes as issues with the supply chain remain unfixed. Due to a shortage of labor and materials, property managers and rental markets will face a slowdown.
The Future of Property Management
The property management service trends for 2022 affect both owners and renters alike. It is possible that these trends could continue and carry over to the following year as well. Should that be the case, familiarization with these trends will give you an edge in the rental market.
Landlords who are looking for a property manager or management company can start with Rental Choice. Our online directory allows you to search for property management professionals in your area.
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