Property management currently operates in a very aggressive and ever-changing field. However, there are some key industry trends that will have a significant impact on how the sector performs for years to come. Trends in residential property management, particularly condominium management, revolve around advancing technology and improving the tenant experience. Coupled with other changes, these trends will have lasting effects on the property management industry years after the pandemic.
1. The increase in technology adoption during the pandemic
Whenever there is a major disruption, like the recent pandemic, old processes are quickly replaced with new ones designed to adapt to changing circumstances. Even though property management had started embracing digital transformation before the pandemic, the shift to remote work models and social distancing has accelerated its adoption.
Property managers stopped working from their physical offices, but they managed property portfolios and residents. This was made possible by the rapid adoption of technology, which provided better visibility into property management. The adoption of various technological tools has allowed managers to better understand their operations, flexibility and agility.
Technological innovations have also introduced contactless transactions to the industry. The introduction of a touchless environment during the pandemic has led to industry-leading convenience. For example, online rent collection has gained traction and the use of virtual tours will continue to be relevant in the future.
2. The need to improve the tenant experience
The value of providing a great rental experience is another crucial trend that property managers should be aware of. Maintaining good relations with the residents of the building and contacting them proactively to understand their issues is becoming increasingly crucial.
Fortunately, management teams have unlimited opportunities to drive unlimited resident engagement and make tenants feel connected within their communities. Activities such as creating community campaigns during the holidays can improve resident engagement.
Along with improving the tenant experience, property managers must also consider the noticeable shift in tenant preferences. A recent survey showed that 60% of renters say the pandemic has affected their preference for where to live. 40% of respondents surveyed said they currently want to live in less populated communities. Working from home and other flexible working hours also allow them to choose where to live.
To respond to changing preferences, property managers need to identify opportunities to attract and retain tenants, especially in major cities where rental rates have been reduced and retaining tenants is becoming difficult. One trick is to offer personalized perks or concessions. For example, high-end residential buildings are currently installing home workout equipment to increase appeal, especially after the pandemic where social distancing has led to gyms closing.
3. Next-gen issues
With younger generations looking for housing, their demands and values affect the real estate market. Many millennials prefer renting and are specific with what they want. Modern equipment and technical integrations, such as high-speed Wi-Fi, smart thermostats and high-tech locks are a priority.
Property managers need to take these trends into account and make conscious efforts to adapt their current practices to changes in the industry. Other trends to watch include rising taxes, closing loopholes, increased property regulation and increased demand for single-family homes.