How property management companies plan to increase their revenue in 2024 [The Lookout]

 Every year, Buildium asks thousands of property management professionals how much their companies have grown over the past year, and how much they plan to grow in the year to come.

This year, 89% of third-party property management companies reported that their revenue had increased over the last two years—more growth than we’ve seen in our previous seven years of surveys.

And we found that 94% expect their revenue to increase in the next two years, with 41% anticipating significant growth, while 50% plan to grow at a slower pace.

But companies also feel like they’re fighting an uphill battle against rising costs, from labor and materials to property taxes and insurance.

As a result, they’re heavily focused on operating as efficiently as possible and finding new sources of revenue. Here’s how they plan to do it.

Increasing resident-paid fees: 62% of companies plan to increase rents or resident-paid fees where allowed, though many are limiting increases for current residents to help with resident retention.

Adopting technology: 48% will leverage technology to improve their efficiency, with property management software becoming more critical than ever to companies’ operations.

Adding services: 40% of property management companies will expand their service offerings.

For some, that means adding new services, such as cleaning, construction project management, or outdoor services. It might also mean bringing certain services in-house, such as maintenance and repairs.

Meanwhile, for other companies, it means expanding the types of properties they manage, such as community associations, vacation rentals, or commercial properties.

Making value-add updates: In addition, 39% of property management companies will make value-add updates to properties to increase revenue.

Increasing client-paid fees: And 38% will increase their rates or client-paid fees.

All of this data comes straight from Buildium’s 2024 Property Management Industry Report. This year’s report talks about the challenges and opportunities companies face in growing in the current environment. If you’re looking to expand in the coming year, you won’t want to miss it. Download your free copy now.