After surviving the chaos of the previous several years, new study reveals that property management businesses are recommitting to the long-term success of their company.
However, just because they’re putting their attention back on growth and efficiency doesn’t imply, they anticipate the challenges presented by the existing rental market to go away.
Instead, it indicates that they intend to change their growth strategy once more, relying on the creativity and tenacity they’ve displayed during the pandemic.
Where did we learn that? Every year, we conduct a survey of thousands of property business managers to learn how much growth their organizations anticipate for the coming year and the strategies they’ll use to make those ambitions a reality.
A thorough knowledge of the economic & demographic factors influencing the rental market, such as the squeezed margins, rising competition, and the continuous labor crisis, would be necessary to achieve development on this scale.
How then can property management firms prepare for the opportunities and problems that the rental industry will present in 2023?
We can help you with the 2023 Property Management Market Report.
In order for property management experts to comprehend precisely how other businesses intend to carry out their growth plans in the upcoming year, how their customers’ expectations have changed over the past year.
And how technology can assist their team members accomplish more with less in the present climate, we created our 10th annual Industry Report.
We’ll discuss three trends in the property management sector from this year’s Industry Report that we predict will have a significant impact on how small and mid-sized businesses do operations in 2023 and beyond.
Property Management Portfolio Growth
In 2023, Small Property Management Organizations Intend to Intensify Portfolio Growth.
The strongest portfolio growth projections we’ve seen since 2017 were reported in our 2022 poll of property management professionals, demonstrating just how far the outlook for small management companies has improved since the epidemic began.
92% of small property management firms with rental properties held by third parties particularly intend to expand their portfolios with new doors in 2023 and 2024.
And as you can see from the graph below, the majority of respondents stated that their companies intended to grow by a large amount. By this, they meant that their portfolio sizes would increase by between 26% and 50%.
The top goals for property management businesses for the upcoming year provide evidence of this change.
The respondents to our study indicated that portfolio development would be their primary area of focus for the second time in a row.
However, as you can see in the following graph, efficiency and profitability came in second and third, respectively.
During the pandemic, these two concerns had lost ground as matters pertaining to landlords and tenants took precedence.
Small property management firms are very determined to regain the health of their company in 2023, which is what led to this development.
The respondents assured us that they are still as dedicated as ever to giving customers who interact with their team a positive experience.
But they promised to be more deliberate in their efforts to strike a balance between issues relating to their growth as well as operations and those pertaining to renters and owners.
Small property management businesses can now consider how to grow their company in a way that is efficient, profitable, and sustainable.
They primarily intend to do this by acquiring new clients, which is what 77% of respondents said will be the main focus of their growth plan over the next two years.
However, there is more rivalry than in the past in the industry of property management. Therefore, businesses are putting more effort into attracting new owner customers and setting themselves apart from more established rivals.