Property Management Trends in 2019 and Beyond
Real estate markets shift and change with evolving economic, demographic, and technological factors that affect property management. Trends that started in 2019 will continue in 2020, and new aspects of the property management landscape will emerge in the coming year. Here we share some growing and predicted trends in property management:
- Segmentation: New construction is up in some markets, down in others, but inventory and affordability remain issues. As boomers downsize, millennials defy the cliché of living in their parents’ basements, and Gen Z emerges as a new and growing market, property managers must consider the differing needs of each generation. Specialization in property management may increase as investors seek expertise in specific markets.
- Technology: It’s not just amenities like Wi-Fi and charging stations—technology has become ubiquitous in property management, from software that analyzes data on vacancy rates, rental rates, and energy use to marketing. Prospective tenants and property owners want management companies to be ahead of the curve in using technology to manage and market properties. Virtual tours, drones eye views of properties, and mobile apps for rental properties have become expectations.
- Retention: Large, new construction apartment projects in areas with low inventory will present competitive challenges in tenant retention. Management firms must balance affordability with amenities to hang on to high-value tenants.
- Consolidation: Investors have noticed that in a tight rental market, it’s not just the property, but the property management, that can generate income and wealth. New investors may focus more on acquiring established, successful management firms than starting their own. Investing in property management companies will grow as a way to enter the real estate business.
- Sustainability: Concern for the environment crosses generations. Prospective tenants, building owners, and potential investors will show more interest in a property’s overall carbon footprint, as well as access to public transportation. Interest in social responsibility will surface questions about inclusivity, affordability, and a property’s impact on its immediate neighborhood.
Property managers will face complex challenges and expanded expectations in 2020. It won’t just be about marketing properties and collecting rent, but also property management services and expertise to owners and tenants using the latest software and technologies. If you’re seeking expert investment property management in Atlanta, GA, consult Excalibur Homes. Our team has experience in the greater Atlanta area that incorporates the latest trends in property management.