With more than 8,000 new community associations formed annually (IKO Community Management), and a projected increase of 5,000 new condominiums in 2022 (Repke), the property management community is one for the books. Trends in property management continue to come and go, and if property managers don’t keep their eyes peeled, they just might miss them. So what trends should they look out for, and how can they prepare for the uphill battle faced by associations?
Here are three growing trends in property management that property managers should be aware of.
Despite already being a growing trend, the recent fascination with artificial intelligence has only accelerated the demand for innovative property management services. These services not only reduce the amount of time spent on recurring tasks, but they can also act as a right-hand man in your day-to-day operations.
More than two-thirds of property managers have now adopted property management software, electronic payments, tenant screening, a resident portal, or document sharing (Buildium). However, despite the majority of managers using digital communication technology, only a select few are taking full advantage of the array of digital services. For more tedious tasks, like maintenance ticketing or amenity booking, A.I. property management tools will be your best friend.
Some driving forces behind this trend include Front Steps, Hello Alfred, and STAN A.I., an automated text bot that instantly responds to any questions residents have. If you’ve ever wanted to respond to your hundreds of service requests, STAN A.I. is the tool for you.
Yet, these services are only just the beginning. As technology continues to improve and evolve, the tasks you can wipe your hands free of will only continue to increase. Maybe one day in the future, the only thing property managers will need to do is sit back and watch their pockets deepen.
With prices rising and no ceiling in sight, discovering new ways to generate revenue is a concern faced by all. Although A.I. property management tools could be the solution, property managers need a solution to minimize expenses.
A third of property managers expect their portfolios and revenues to increase in the next two years (Buildium). So, how do they plan on achieving this? Well, there are a few options they can take advantage of. One solution involves acquiring properties in higher-rent areas, getting licensed to buy or sell properties, raising their rates and fees, or consolidating into larger-scale associations.
Many property managers are opting to increase margins
Whether property managers decide to follow through with these options varies by case. However, the goal for property managers is to ensure that their business will remain healthy, even in uncertain conditions. They’re paying more attention than ever to reduce their operating expenses and are searching for new ways to diversify their sources of revenue.
Although it may seem like financial performance is all that matters for property managers, the most important thing will always be their residents’ satisfaction. This trend is sitting in first place with property managers. With more than a 29% increase in those who consider residents a top priority (Buildium), this trend is by far the most important.
Coming out of the pandemic, property managers are finding more ways to personalize their customer relationships. Using digital services allow for less time spent on monogamous tasks and more time spent communicating with and learning about their residents.
Going back to STAN A.I., this A.I. property management tool is just one of the examples of how this is possible. Instead of spending hours creating service requests, STAN will automatically create them for you when a resident texts in. This feature shortens the process for property managers and leaves residents more satisfied with their management’s quick response time.
The overall goal of property management is more clearly defined now, and day-to-day operations have been pushed aside by the necessity of a good property manager. The difference between a successful and unsuccessful investment falls on the shoulders of the property manager and how well they can handle their assets. (Buildium). On the horizon lies various challenges for property managers, but if they can properly equip themselves for the battle, they will have a better chance of success in the war.