2018 is well under way and so too are the predictions for trends in property management. In this article, we will be reviewing the latest property management technology and industry shifts for property owners. Grab your iPad and take note, these are the five main property management trends for 2018:
- Human-centered business models: According to Multifamily Executive, consumers value experiences. We’re seeing this in all walks of life. From the experience of getting your morning coffee at a local cafe to staying in a hotel on a business trip. Brands are working to create the ultimate experience for consumers in order to gain their loyalty. Additionally, we all have basic, primal instincts and needs that will never change, even if technology evolves to serve those needs in new ways. So what does this mean for property management companies and owners? It means property managers need to focus on connecting with renters, providing a valuable and unmatched experience and playing to basic human needs. Property management will become increasingly entrenched in serving up instant gratification to renters and they need to be prepared to answer the call with savvy amenities like parcel lockers, pop-up store and restaurants, co-working spaces, spas and any other service that may give them a competitive advantage.
- Enhanced Technologies: Multifamily Executive also reports that property management technology will continue to play a vital role within the industry. Some of the new and noteworthy technology players out there are RealPage, which aims to reduce the typical 48-hour process of vetting residents down to one minute via its Resident Screening Software. Another company, Show My Property, enables renters to explore potential properties via virtual-reality environments that they can view on their smartphones. And finally, Knock, a marketing, messaging, and scheduling management platform for large multifamily properties, offers software that property managers can utilize to easily and quickly communicate with renters, coordinate and schedule tours, and track overall leasing effectiveness, all in one centralized platform. These are just a handful of the cool new technologies available now with more in the pipeline for managers to tap.
- Generating more revenue: Investors and owners will continue to search for ways to increase ROI. As Multifamily Executive states, “we’ll see owners and operators return their focus to controlling, reducing, and aggregating costs. Additionally, finding new ways to maximize ancillary income through sound processes and creative revenue streams such as door-to-door trash pickup, alarm systems, and washer/dryer rentals will become a competitive advantage in 2018.” Property Managers can also consider parcel lockers as an effective way to satisfy residents while also generating revenue. Parcel lockers allow residents to pick up their packages at their convenience while also saving time for managers so they can focus their energy on serving residents.
- Renters want value for amount paid: This should come as no surprise. Renters continue to want more value for what they pay. Leveraging New York as an example, Multifamily Executive points out that the city “has consistently achieved higher scores than most of the largest U.S. markets in renter satisfaction, renter renewal intent, and value for amount paid throughout the past year. For renters who indicated that they intend to renew their leases, location, community management, and security were the top factors influencing their decision. For renters who expressed satisfaction with value for amount paid, location, apartment features, and rental rate greatly influenced their positive value perception.” This is a nice reminder for PMs to look for new and creative ways to elevate resident satisfaction by adding unique amenities like parcel lockers to a commercial property.
- Servicing older, wealthier renters: Finally, according to a new report, the number of higher-income rental households has doubled in the last decade and this will continue as baby boomers downsize so PMs should start to prepare to adhere to older customers.
What trends do you predict for this year? Comment below.