October 27, 2022
Single-Family Property Management Service Trends for 2022
For several years, there has been an increase in the number of tenants living in single-family rentals. And, with the pandemic fueling this surge, it’s no wonder these figures have continued to rise. The increased need for additional space in less densely populated areas has significantly influenced the interactions between property owners and managers. Owners rely on managers to guide them through the new laws and constraints imposed by the pandemic while also assuaging concerns about income loss due to late rentals. Meanwhile, property managers are collaborating with residents to retain them in their properties despite whatever financial difficulties they may be experiencing.
Although the economy is gradually improving, many of the management service trends that have evolved in recent years are here to stay. The single-family property managers polled for our annual Property Management Industry Report.
Here are some of the most significant rental owner and resident service trends that property managers throughout the country anticipate will continue in 2023.
On the Owner’s Side
As the housing market continues to evolve, more and more landlords are seeing rental properties as viable investment opportunities. In fact, since 2018, the number of investors in our survey has increased from 67 to 71 percent. Even institutional investors are taking notice and are beginning to enter the space.
For those who may be unfamiliar, an Accidental Landlord is someone who owns a property unexpectedly, such as through inheritance. However, with the changing housing market landscape, many Accidental Landlords are now viewing their rental properties as a potential business venture.
The value of property management has grown in recent years due in part to the increasing complexity of the real estate market. Owners now seek out firms with local market expertise and the ability to identify investment opportunities. For those considering expansion into new markets, a property manager who can conduct market research is invaluable.
As property owners strive to understand better how their holdings perform in the overall market, the need for more robust reporting has become increasingly apparent. This trend is driven by a desire for greater granularity and insight regarding data points such as local market trends.
As a professional property manager, it is important to be able to advise your clients on how they can add value to their current properties. This may include suggesting improvements and amenities that will appeal to their target residents and as a result, increase rent. Some examples of these amenities could be private yards, extra space for pet owners, or any other features currently in demand among those renting homes.
As we continue to face challenges posed by COVID-19, it is clear that there is a great need for knowledge and understanding of current events and legislation affecting landlords and tenants. Moratoria on evictions and local restrictions are some of the latest concerns for property owners. In addition, rent control has been revived in some major cities, and good cause eviction laws are gaining traction in places like New York. It is more important than ever for landlords and tenants to be informed of their rights.
As new laws and restrictions arise, property managers are needed to help navigate the compliance issues that come with them.
Property managers can help expand an owner’s portfolio by steering them clear of markets where restrictions would make it difficult to turn a profit. Although consulting legal professionals is always the best option, property managers should still be familiar with these trends to anticipate clients’ requests and refer them to the right people in their network.
On the Resident’s Side
Maintenance and Repairs
As the pandemic continues, renters expect more immediate results when requesting maintenance and repairs. This trend has been amplified by the fact that people have been home much more, leading to more repair requests and communication from property managers. The challenge for property managers moving forward will be labor shortages and supply chain issues, two problems that currently plague many sectors of the U.S. economy. On top of that, the increased price of certain supplies and materials can lead to tough decisions about handling those expenses and to what extent they’ll be reflected in management fees.
When it comes to property management, Phoenix is a hot spot for rental properties. It is also one of the prime locations for innovation in the industryAs we all know, 2020 was a tough year for many people. One of the things that became difficult was touring vacant units for potential rental properties. However, people turned to a service that was already growing before the pandemic: virtual tours.
Now that people are used to them, it’s likely that virtual tours are here to stay. A 2020 survey by Zumper and Matterport found that 95% of renters were likelier to rent a property listed with a 3D tour.
Virtual tours allow prospective residents to screen properties before contacting property managers, saving time from visiting units that aren’t right for them. Property managers also save time by not having to show the unit to someone who isn’t interested. Additionally, virtual tours give prospective residents who are relocating the opportunity to see properties without making a big trip.