Property management companies play an important role between property owners and renters. Find out four reasons why property management businesses are thriving.
Everyone’s lived in a rental property at some point during their lives. Whether it was while you were studying in college or for some time after that, it probably taught you the difference between a good and bad landlord. People implicitly know what makes a good living situation based on how they lived in the past.
Now, landlords and real estate investors understand the importance of making tenants comfortable. They’re investing in property management businesses to make sure people are satisfied with where they live so that they keep coming back. And their investments in these businesses are paying off!
Real estate investment in property management businesses has benefited everyone. Tenants enjoy a more direct connection with the people running the buildings where they live and have more control over their situations. Investors are profiting more from tenants who want to continue living where they live.
And most of all, the property management business is booming! All the new money from real estate investors has catapulted the industry to new heights, and it’s still improving. To learn more about why property management businesses are thriving, keep reading below!
1. Real Estate Investors See More Profit in Rentals
The market for rental properties has exploded as the market for homes collapsed. After the recession, people were unable to purchase homes and turned instead to rental properties. The recovery since then has taken time, and people continue to prefer renting their homes instead of purchasing them outright.
People simply can’t afford to buy their own homes, and they need to live somewhere. This gives real estate investors an opportunity to open more rental properties to both make money and give people a place to live. It’s a cornered market — rent your home or don’t have one at all.
As a result of the slow recovery and the cornered real estate market, asking prices for rent have exploded. And when real estate investors can charge so much for rent, there’s no reason not to invest in rental properties.
Investors Can’t Run Their Investments Themselves
Despite the newfound eagerness around rental properties, real estate investors learned they can’t run their properties themselves. Since the market is so saturated with new rental properties, landlords must compete hard for business. Without basic amenities and supportive staff, real estate investors can lose massive amounts of money.
The new need to make rental properties places worth living in contributed to the rise of property management. Real estate investors purchased their services as a way to stay competitive against other investors. The quality of the real estate property no longer matters as much as the quality of the property management company.
The better the company that investors go with, the more people they will attract. And as a result, they will make more money.
2. Property Management Businesses Have New Technology
One of the most revolutionary parts of property management in recent years has been its adoption of new technologies. There was once a time when tenants had to speak over the phone for maintenance requests or to ask questions. They would have to visit management offices to speak with people.
Now, new technologies brought property management businesses to where people live — literally. Tenants can pay their rent online, without ever having to get off the couch. And if something goes wrong in their homes, they just need to file a report through any variety of online portals.
Advanced companies have invested in technologies that let people check in on their homes from anywhere. Some property management companies have improved tenant security by installing high-tech locks. The possibilities are endless when it comes to property management technology!
Managing Property is Easier than Ever
Tenants aren’t the only ones that can benefit from advancements in property management technology. It’s also getting easier for real estate investors to keep track of their investments, and on the market as a whole. New software is letting them keep tabs on asking-price fluctuations and any new competition in the area.
It’s also helping property management companies keep track of tenant details. Companies can now screen applicants faster and more detailed than ever before. They can also keep track of who pays their rent on time, and the condition of the buildings their management.
These new tools are helping people compete better in the real estate industry while helping tenants live better lives.
3. Marketing Made Connecting With People Easier
One of the hardest challenges real estate investors faced was rising above their competition. They would struggle to make a name for themselves and attract people to their business within the community. It doesn’t matter how well you run your property if nobody knows about it, after all.
Luckily, marketing has evolved beyond the days of billboards and print advertising. Now, real estate companies can identify specific demographics, or even psychographics, that they want to attract. They can decide who they want to fill their buildings with.
Social media marketing, digital marketing, and other new strategies have given properties new opportunities to develop their brands. They can connect with people in ways that once seemed impossible. As a result, they’re getting more business and property management is growing.
4. Hotels Aren’t Holding Up to Tourist Demands
Another factor that contributed to the rise of property management businesses is the downfall of the hotel industry. Formal hotels are losing business in vacation spots to new companies like Airbnb. People are hiring property management companies to manage their Airbnb properties, and people are using them.
Almost all tourists prefer having an entire house to their own, instead of a small hotel room. It’s hard for the traditional hotel industry to beat out a condo for half the price of an average hotel room. And the emergence of this new kind of market has helped property management companies thrive.
The Property Management Business is Booming
It’s obvious that property management businesses are finding new success in the real estate industry. With so many people looking for rentals to call home, real estate investors are working to keep pace with their demands. And one of those demands is well-managed businesses.
Real estate investors depend on property management businesses to keep people coming to their properties. Yet, that’s not all that property management companies do. And to learn more about how property management is helping improve the real estate industry and what they can do for you, contact us here!