Every year brings some change in the rental property management industry and 2020 is no exception. There are a number of trends that are expected to impact rental property management in the coming year. Adapting to property management industry trends is an important part of being a great property manager and it’s a vital part of maximizing returns on the rental properties they manage.
Top 5 rental property management industry trends 2020
Here are the top 5 property management industry trends for 2020:
- New property management technology
Technology is constantly birthing new devices and applications. In the coming year, it is expected that owners, agents and property managers will increase the use of technology to add value for their clients. This will include the use of smart technology for security and automating functions like turning lights on and off, opening and closing drapes and turning appliances like washers and dryers on and off for convenience and energy conservation. Technology will be used to facilitate cloud sharing between owners, property managers and their tenants. In addition, property management companies are expected to capitalize on new technology to further automate financial management. Technology will be used to keep records of incoming and outgoing funds, generate reports automatically and send them out to property owners and other concerned parties.
- Increased focus on Gen Z
While millennials still make up the biggest part of the tenant market today, the portion of the rental market for Gen Z is expected to grow from eight million to more than 55 million in the next 10 years. This is the generation that was born into a world where technology was a big part of everyday life. Gen Z expect nothing but the best and latest in the houses they rent and property managers would do well to ensure they provide it. Gen Z will be looking for free Wi-Fi, keyless doors, device charging and docking stations, online rent payment options and hi-tech fitness centers. Upgrading to provide these and other amenities will be important for any property owners looking to compete in the rental market going forward.
- Increased competition
The real estate industry has been on a growth trend the last several years. As this trend continues, property managers can expect to see new players enter the game. Current property owners should plan on increased marketing efforts to attract the best tenants, whether they manage properties themselves or depend on a rental property management company to handle their marketing efforts.
- New property management marketing strategies
As competition for clients increases among property management companies, it will be necessary to adopt new marketing strategies. Ideally, digital marketing will be a big part of marketing efforts because this is the best way to attract millennials and Gen Z. Online marketing is also cost effective and wide-reaching. A blog with informative, updated and relevant, SEO-optimized content is one way to do it. Another is virtual tours that present units in a very real and appealing way. In addition, lead generating software will become more and more widely used.
- High demand for rental units
Another anticipated trend is that demand for rental units will remain high. Despite a three percent rise in average national rental rates, more than 80 percent of the population choose renting over homeownership. In 2019, the demand for rental apartments rose by 11 percent and the growth trend is expected to hold.
Son-Rise Property Management has been serving the property management needs of Bellingham and Whatcom County since 1996. Contact us today to see how we can help you find a rental property for your family or manage your rental properties.