Despite the multifamily leasing industry’s reputation for being slow to adopt new technologies and working practices, more landlords than ever are embracing digital transformation and property management trends — and it’s easy to see why. Property management companies are grappling with a range of issues affecting their profitability, including higher wages and inflation, increased industry regulations, a competitive leasing market, and affordability issues for renters. While some multifamily property owners will continue to rely on outdated management tools to meet these challenges, top property operators are investing in newer software solutions to succeed.
Keep reading to learn more about the 10 property management trends for 2023.
Growing Demand for Multifamily
For many years the rental market has seen a persistent demand for single-family homes in addition to increasing detached home prices. This demand is outpacing availability across North America, causing many renters to turn to multifamily units. The multifamily construction sector is growing steadily and will continue providing profit opportunities for investors and landlords alike.
With staffing challenges, decreased cash flow, reduced revenues, and rising costs, many multifamily landlords are looking for ways to streamline their business model and increase management efficiency. Centralized leasing software and tenant engagement software are helping to transform the multifamily property management industry.
SaaS Software Technology
Next year, we predict that property management will be all about automation. Leasing professionals have a lot on their plates these days. To help ease their workload and scale their business, they’re turning to tech. Innovative cloud-based SaaS technology is enabling multifamily landlords to meet their goals. PMCs will see further improvements in time management, tenant engagement, virtual leasing, and property maintenance.
Increased Cost of Doing Business
No industry is immune to the effect of inflation. Inflation is expected to increase over the next year or two, and wages will likely remain high throughout 2023. In addition, material costs are up, energy prices are rising, and green initiatives are expected to increase the cost of building and repairs. With this in mind, it’s essential for PMCs to keep property management costs low.
Property Management Trends in Automation Technology
Over the past few years, both property managers and tenants have seen the value of automated PropTech. PropTech has empowered the landlord and tenant to eliminate traditional pain points within this industry. By delivering real-time data and predictive analytics, automation helps to increase productivity and efficiency with less time spent on manual tasks and processes.
Increased Demand for Property Management Services
Landlords are increasingly being asked to provide an ever-growing list of services and amenities to tenants, who are more informed and demanding than ever before. Because of this, many landlords recognize the value of PMCs expertise and digital management tools.
The migration to low-tax states and the increasing work-from-home trend have caused the demands of renters to evolve. Renters seek more space, at-home offices, and high-speed Internet to work and comfortably live in the same space. Properties that can meet these demands (especially ones located in Florida, Texas, and Tennessee) will likely see strong demand in 2023.
Millennials and Gen Z tenants make up a larger percentage of the tenant market and expect high-tech digital solutions. Many members of this younger demographic consider landlords who are not tech-savvy to be unprofessional. In addition, landlords are increasingly choosing property management companies that demonstrate expertise in technology.
Property Management Trends in Marketing
Given the complexity of property management today, many top operators are integrating their website content, SEO practices, social media, and PPC ad campaigns to increase their online presence. The most successful PMCs will make noise this year by adopting strategic online advertising and content marketing on their website. Tech-savvy landlords will drive new business with a solid brand and clear communications.
With rent prices continuing to rise and vacancies limited, affordability is becoming a challenge for many renters. Because of this, multifamily landlords will likely experience more friction with renters facing this uncertain market. Top property operators must find ways to communicate clearly and increase tenant satisfaction if they want to demonstrate compassion and legal compliance.
The future of PropTech: 2023 and beyond
The sky is the limit, as they say. Yet, PMCs and multifamily landlords have been limited by technological barriers, human behaviors, and stretched resources. Although these challenges remain, the capabilities of PropTech and tenant engagement software are overcoming many of the limitations we’ve experienced in the past. From transparency and rapid access to centralized data to new methods for remote property management through renter engagement apps, PropTech is truly impacting multifamily as we know it.
Click here to learn more about how PMCs can benefit from tenant engagement technology.