According to our 2024 Property Management Industry Report, nearly all property management companies are looking to grow their portfolios and revenue in the coming year.
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With rising prices on… well, everything, you may be scratching your head on that one. How will they meet that goal, and where will they find growth in 2024?
According to responses from the thousands of property management professionals we survey each year, there are four major areas in which they plan to grow. We summed them up for you.
Expanding Their Portfolio
Higher prices and vacancy rates coupled with a growing number of rental regulations is prompting some owners to sell off their properties. That will give new investors the opportunity to enter the rental real estate market, particularly if prices become more reasonable in 2024.
As those properties change hands, new owners may look for new property management companies to take them on.
If you haven’t already, build relationships with real estate agents in your area. They can refer you to new rental property owners looking for help managing their units.
Another opportunity lies in the sustained shift away from urban areas. According to the Joint Center for Housing Studies at Harvard University, 1.2 million Americans left large cities for small to mid-sized cities, suburbs, and rural areas. The share of individual working from home has remained elevated since the pandemic has eased, sustaining demand in these areas.
There is an opportunity for property managers who have the means to look outside their geographical area for growing markets that have yet to be tapped out.
Adopting Technology Solutions
In our Industry Report, property managers were very clear about their stance on new technology: it’s a very good thing.
They’re finding that with the right technology solutions, they can run their businesses—and even expand their offerings—without bringing on new team members. Efficiency is the key here. Property managers are able to do more with less, and free their staff from time-sucking tasks so they can focus on projects that generate revenue and improve their customer service quality.
According to our report, property owners want property managers to use technology to handle these seven processes more efficiently in 2024:
Some property managers are turning to single-solution software providers to solve individual business challenges. That, however, can get really cumbersome, really quickly.
A property management software solution that includes an array of services, from owner and resident portals to accounting to maintenance, can become the hub of a property management business and a single solution for multiple pain points.
Providing New Services to Owners
For the last four years, we’ve seen respondents to our annual survey of small-portfolio rental owners identify less often as Accidental Landlords, meaning that they came to own their rental property due to circumstance, and don’t consider themselves investors.
Instead, more investment-minded owners are entering property managers’ portfolios. And while Accidental Landlords are still more likely to look for help managing their properties, investors are seeking out the services of property managers, too.
Overall, these are the services most rental owners are looking for a property manager to provide:
The types of services investors are looking for vary somewhat from this list. While they still may be looking for someone to handle the basics, such as leasing and maintenance, they’re also looking for a savvy property firm that can advise them financially on their investments.
And just like Accidental Landlords, they’re also looking for a firm that can help them navigate local, state, and federal regulations, as well as accounting and taxes.
Property managers who can add investment advice, accounting and bookkeeping, and even legal advice to their service offerings stand to attract more clients and grow their business in 2024.
Property managers are also investing in expanded maintenance services that include renovations and construction, regular property inspections, and preventative maintenance. They’re building in-house maintenance teams and bringing maintenance online to increase efficiency, lower costs, and create new revenue streams.
Providing New Services to Residents
Finally, property managers are expanding the services they provide to tenants to avoid vacancies and unlock new sources of revenue. Here are a few suggestions from our report:
Maintenance services don’t stop with owners. Property managers are providing maintenance contact centers for residents, as well as regular maintenance services such as HVAC filter replacement and garbage pickup.
Resident benefits packages are also a popular way to enhance the resident experience while increasing revenue. Utility management, credit reporting, renters insurance, and identity protection are all services offered by some property managers.
For multifamily properties, concierge services, pet care, package lockers, and electric car-charging stations are all good examples of added services.
Here are some other services that renters expressed interest in this year:
Growing your property management business in 2024 is far from impossible. In fact, many property managers have already found creative ways to do it.
For more growth ideas, as well as a wealth of information on the state of the industry, download our free Property Management Industry Report.Read more on Scaling