Working With The 2024 Property Management Trends

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Cofounder at UpperKey. Passionate about property management, real estate investments, proptech and driving international business growth.

With ever-advancing evolutions in technology and innovation, changes in client and tenant demographics and the state of the real estate industry in general, there’s a great deal going on in property management that industry leaders need to keep ahead of.

Many construction projects are back in full flow, although, in some locations, living space expectations have impacted the types of new properties getting built since the pandemic started.

I’ve noticed that key tourism and business hubs—country capitals and high-profile cities such as Paris, London and Dubai—continue to show favorable signs of lucrative returns for property owners operating in or breaking into rental markets.

With the journey through the pandemic creating vast shifts in how we operate and the current market’s problematic financial issues, what can property managers expect from the coming year, and how can we plan to make the most of the opportunities offered?

Prioritize strategizing for growth.

Property management companies strive for growth. It’s what boosts the bottom line. And learning from the issues faced during Covid-19, many of us have seen firsthand the benefits of the integration of new technology.

We’ve also seen a decline in real estate opportunities and a rise in rental demand. So, where do we concentrate our efforts for growth?

Property management companies grow by expanding their portfolios. So focus on recruiting new clients, encouraging existing clients to add new properties, expanding into new markets and regions, and even consider whether it might be a good idea to invest in buildings and developments of your own.

Combat rising costs.

Taxes, insurance, materials, service and labor charges have increased, so using your expertise to streamline your outgoings is more crucial than ever.

Rising costs and cost efficiency are significant factors, given the global financial issues we’re experiencing. To maintain profits while offering value, aim to be more efficient with your time and resources, finding ways to earn more without creating more effort. Again, consider leaning into technology to ease your workload while processing more contracts.

Beware of the competition.

With new technologies replacing old-fashioned systems, there’s a lot of opportunity for tech-savvy startups to enter the market. Also, I’ve noticed many realtors and estate agents are diversifying into property management as the number of properties in the market drops.

How do property managers ensure we stay on top? Well, we’ve got the benefit of our experience on our side. Unlike those building their operations from scratch, building on what you already have should offer tenants more streamlined, personalized, practical solutions and customer service.

Strive for tenant quality and resident retention.

Maintaining occupancy rates requires a steady stream of new tenants and holding on to the quality ones you have already. Tenant screening to ensure they’re the type who can afford your higher-rate properties and extended stays is a must.

As a growing market, Gen-Z often needs to spend more on rent, with many still planning to buy property further down the road. How? Well, it’s often down to the Baby Boomers (who own a decent percentage of existing properties) freeing up equity. Some Baby Boomers are choosing not to downsize and reap the benefits themselves, but to invest in their children’s first steps onto the property ladder.

Finally—and unsurprisingly—continue exploring technology.

1. Machine learning and AI: Machine learning and AI are turning heads in every industry. It’s no different in ours and within almost every area of operation. How can we utilize AI more efficiently? How about predicting maintenance operations, asset lifespans and lifecycles, tenant behaviors, market fluctuation, optimizing rental rates and seasonal pricing—all things we can build into our schedules to become more competent and pre-empt problems and emergencies? Predictive maintenance will also play its part in sustainability and energy planning—another critical trend area in our industry.

2. Big data, planning and decision-making: To take the tech a step further, how about using AI to predict potential investment opportunities by analyzing market and consumer trends? Property management software can utilize data to observe property performance, finances and tenant behavior, exploring key performance indicators and weak areas, leading to more data-driven decision-making for enhanced efficiency and profit.

3. Sustainability and lifestyle: Moving toward sustainability and greener opportunities, property managers can optimize energy consumption and waste management, use more renewable resources and provide tenants with added health and wellness, lifestyle quality and living experiences.

4. Smart/intelligent buildings: What were once high-end luxuries and marketing opportunities are now practical implementations for every rental. However, don’t take their integrations for granted. Virtual tours, automated lighting and heating sensors and systems, smart locks and digital check-ins and checkouts don’t just make life easier for everyone, they provide a wealth of real-time data for more of that essential data-driven decision-making.

5. Blockchain transparency and security: With smart contracts and digital documents at the heart of new transactions, we can eliminate paper trails and many third-party elements. Blockchain provides transparent and secure historical interactions; and for investment situations, there’s every possibility of simplifying processes and transactions.

6. Property management tools: Digital property management tools should be at the heart of every company’s administration and function. Remote monitoring and automated services allow for massive improvement of operations. At the same time, the emphasis on mobile tools for users and managers enables us to manage more contracts wherever we are and whenever the need arises.

As these enhanced tools streamline our work, tenant and employee satisfaction rises, allowing both to concentrate on what they’d prefer to be doing with their time, becoming more productive or happier instead of wading through a field of demeaning or tedious manual tasks.

So, how will you attack 2024?

Whether you’ve got a crystal ball or not, there’s much to do to keep pushing operations forward in the current landscape. Doing what you can to try and future-proof your services—or at least stay ahead of the curve—is more than necessary in our ever-evolving market. These trend suggestions are a few sensible choices to help build growth, stay current and strengthen returns.


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