The annual Property Management Trends Report is here, which means we’ve got another insider look at the current shifts in the real estate world. This US-based research—conducted online by The Harris Poll on behalf of LeadSimple and Peter Lohmann—is one of the most informative reports available in the industry, as it seeks to answer the complex questions surrounding our current property management landscape as we slide into this new year.
As a landlord or property manager, you know how important it is to keep a pulse on the ever-changing industry. Knowing what’s happening in the real estate market can help you adapt to any upcoming changes, streamline your business, and continue to show up for your tenants (and your business, too).
We’re happy to share that TenantCloud is an official sponsor of this year’s Trends Report. As property owners ourselves, we find a lot of value in LeadSimple’s in-depth research, and we believe that the more we understand the industry's attitudes and expectations, the better we can serve the community.
So, join us as we go over the highlights of the 2024 report. Here’s a glimpse of the answers ahead:
- What were tenants prioritizing in 2024 (and beyond)?
- How are property managers using technology to stay relevant?
- What strategies are successful landlords using to grow their portfolios?
If any of those topics interest you, read on.
How Does the Survey Work?
The Property Management Trends Report is a collaboration that captures the challenges and opportunities property managers and landlords currently face in the US. One promising aspect of it is that it encompasses a wide range of landlords, from managing a single unit to hundreds of units.
Here’s how the survey works:
- Crafted by Experts: The survey was conducted online by The Harris Poll, a well-known market research firm known for credible and reflective survey trends. It was carried out during September 27th to October 11th, 2024.
- Supported by Partners: The research is supported by LeadSimple and Peter Lohmann, well-respected thought leaders in the property management industry.
- Completed by Participants: The poll surveyed over 750 residential real estate investors who currently owned one or more rental properties.
- Real-World Insights: The survey asks participants about critical areas of property management, including technology adoption, tenant satisfaction, maintenance challenges, rent collection, and strategies for growth.
Key Takeaways from the 2024 Report
Here are the most impactful insights from this year’s report:
Tech is Still a Major Part of the Industry
According to the survey, technology is still vital to the real estate market. 69% of investors have used a property manager or management software to handle their rentals, and around 25% are still using them. This shows an increasing reliance on technology. From tenant communication to payments, tech tools play a significant role in shaping the industry.
Takeaway: If you’re not using property management software or a professional yet, you may be falling behind. Consider adopting certain tools, such as payment portals, tenant screening, and maintenance tracking, to stay ahead.
Investors Want More Hands-On Opportunities
When it comes to day-to-day decision-making for their rental properties, two-thirds of investors (65%) prefer to be involved—that’s including the investors who currently use a property manager. And while it may seem like the underlying meaning would be that investors want less third-party involvement, the opposite is actually true. Most feel good about what’s currently on their plate and plan to continue to use their current management to handle their tasks.
Investors also voiced their desire to give final approvals for repairs above a certain cost and tenant approvals for a new lease.
Takeaway: If you’re a property manager, make sure to keep your investors and owners in the loop at all times. Several management apps, such as TenantCloud, make it easy to do so with a separate owner portal that acts as a direct pipeline.
Maintenance Repairs and Rising Costs are a Challenge
Out of all the current problems real estate investors face in today’s world, surveyors stated that business costs, tenant problems, and maintenance repairs were at the top. Investors expressed difficulties in keeping up with maintenance repairs and the high costs associated with it. They also noted that maintenance repairs were the top challenge they dealt with on a daily basis.
On the bright side, investors also recognized that the common problems associated with maintenance management, such as finding a vendor, vetting tenants, and managing insurance, can often be solved by hiring a property manager. (Job security, anyone?)
Takeaway: If maintenance repairs and handling tenant inquiries are one of your biggest obstacles, consider hiring a property manager or investing in maintenance-tracking software such as TenantCloud.
Property Managers Remain a Worthwhile Investment
Overall, investors viewed property managers in a highly positive light, with 8 in 10 agreeing that property managers make managing a rental easier and do more than just collect rent. Slightly less than that agreed that they’re trustworthy and can help reduce legal liability.
Reasons for not investing in a property manager included being too expensive (54%), not having enough control over their property (43%), and increased maintenance costs (32%). Only 15% of surveyors stated having a bad reputation as a reason to not currently use a property manager.
Takeaway: The most interesting finding in this category was that investors currently working with a property manager reported a smaller vacancy window than those not working with one (4 weeks versus 4.6 weeks), so if vacancies are a stressor for you, it may be time to hire a property manager. And if you’re a property manager, feel free to use this takeaway to attract more clients.
Portfolio Growth Remains a Priority
Despite 2024’s challenges, many landlords and property managers are optimistic about growth. Looking ahead, investors plan to prioritize their profit margins, upgrade their facilities, own more units, and reduce their costs.
Takeaway: Focus on strategies that allow for scalability, like adopting tech solutions that grow with your business, hiring a third-party property manager, and eliminating repetitive tasks.
Phone Calls are the Preferred Communication Method
This is not so good news for Millennials and Gen Z, but among investors, phone calls were the preferred method for property manager communication, including non-emergencies. 73% of surveyors expect a response the same day, with nearly half expecting to hear back within a few hours.
Email, text, online portals, and written letters were the next preferred lines of communication, in that order. And if you’re still writing letters back and forth to your property managers, our old-fashioned hats are off to you.
Takeaway: If you’re looking for a property manager, prioritize one who is quick to respond and isn’t afraid to make a quick phone call. If you are a property manager, showcase your availability to stay ahead of the competition.
What This Means for Property Managers
The 2024 Property Management Trends Report offers a clear message: Adaptability and innovation are key to thriving in the future. Whether it’s adopting new technology, improving maintenance management, or staying ahead of economic challenges, the ability to evolve sets successful property managers apart.
Key Points to Consider:
- Are you communicating with consistency and transparency?
- Are you leveraging tools to simplify maintenance and rent collection?
- Are you positioning your portfolio for growth in a competitive market?
Steps You Can Take
Use these actionable tips to apply these findings to your rental business:
- Evaluate Your Tech Stack: Identify gaps in your current technology and invest in tools that can automate repetitive tasks.
- Optimize Maintenance: Use tracking systems to streamline repairs and ensure timely responses to tenant requests.
- Plan for Growth: Develop a strategy to scale your portfolio while maintaining high levels of efficiency and service.
Conclusion
The 2024 Property Management Trends Report provides valuable insights to help you navigate your business. By staying informed and taking actionable steps, landlords and property managers can overcome challenges, meet tenant expectations, and position themselves for growth.
Ready to implement these strategies? Explore how TenantCloud can help you stay ahead of the curve.
