2020 is sneaking up on us. The future is always doing that isn’t it? The foundation we set years ago is what is producing our current results. And now we look forward to creating next year’s results, right now.
That’s why it’s so important to put aside your work details and consider the big trends in the real estate, tech, political, and economic scene will impact landlords and property managers in 2020 and beyond.
These top property management trends include increased competitiveness in local markets, more rent controls and regulation, and the rise of proptech with its seeming lack of human touch.
Your top questions arise from these top trends.
3 Questions You’ll Be Asking this Year
1. How can I compete well and turn a profit in a crowded property services market amidst a housing crisis?
2. Should I do more virtual management in 2020 with a new online property management platform?
3. How do I take on additional landlords and new rentals, provide more services and new services with a stagnant budget?
What Should you Be Delivering to Your Customers?
Tenants and landlords alike have ever-rising expectations of what you should be delivering. What is it landlords want in the property managers they hire right now? What draws new renter prospects and what keeps them under lease?
Renters and Landlords want:
⦁ transparency and quick response times
⦁ an accessible property manager
⦁ fast resolution of issues
⦁ good customer service
⦁ real time updates about their rental property
⦁ online tenant rent payment and owner disbursements
⦁ good accounting and integrated banking
Can you deliver on these demands? Should you? Is it possible that what they want could be the foundation for your new value-added strategy?
Eliminate Your Costs While Improving Service
You are your services. Perhaps you can compete with a new business model with a new service process.
The services you rely on to create revenue are changing too. One recent survey showed property manager’s key services now are: maintenance & repairs, rent and fee collection, leasing and marketing, along with inspections and evictions. Accounting and financial reporting are part of the new service mix too.
You will be managing more properties which means more cost, work, and problems. If you could minimize maintenance and evictions, automate inspections and rent collection, while creating more time for tenant services and marketing, you’d have a more profitable outcome.
How would that work? You start with a software platform that automates all of your work. Then you can identify your major profit draining cost centers so you can reduce them. The virtual platform delivers services in a way tenants and landlords love.
Rental Housing Shortages and High Rents
For property managers, the housing shortage across North America and Europe means rental prices that are too high for most renters.
It’s believed that 50% of renters can barely afford their rent now. In California, the unaffordability numbers are much higher as rents rise.
Although build to rent units are popular, the levels of rental construction permits and completions are down. A new crisis of rental affordability is just ahead. This is your marketplace.
To manage this crisis, property managers have to improve their leasing processes and resident retention policies. These processes can be helped via property management software. You can go virtual, cut costs, and achieve better tenant management. From communications, to rent payment security, to better financial management, you can manage the threat that the housing crisis is throwing at you.
Compressing Cap Rates
5 to 10 years ago, cap rates were excellent. Things have changed as they’ve slid down considerably due to stagnant renter wages and ultra high real estate prices. Property management fees seem to have plateau’d.
To grow revenue, you need to add services (add fees?). This is where digital amenities come into play. Renters will pay higher rent for these premium services.
For a small business property manager, a simplified property management solution is both affordable and versatile. The point for you is to reduce workload and prevent issues from happening.
For you, property management automation is particularly profitable.
Property Management Software Demo
Now that you understand the big 3 questions for 2020 and the big picture changes needed, it’s time to take a demo of ManageCasa’s property management platform. You can immerse yourself in this wonderful platform and ask questions to help you achieve your specific business goals.
This could be a defining moment for your company as you create your results for the years ahead.
Get up to date on the latest information on property management business strategies at ManageCasa.
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