2023 witnessed significant growth and evolution in the Property Management market. From a rise in the adoption of tech-driven solutions to changing market dynamics and a focus on more sustainable practices, a lot has changed.
The market, estimated at $US78.43 billion, reflects that this robust sector needs to adapt to the emerging needs of today’s property managers and tenants alike.
With this in mind, this article explores 5 best practices for property managers to stay competitive as they enter 2024.
Let’s look more closely at what these are and what else the New Year holds for this highly dynamic market.
Top 5 Best Practices for Property Managers
To meet the high expectations of property occupants, property managers need to up their game accordingly.
From improving service delivery to enhancing overall experience and keeping your business profitable all this while, here are some best practices to follow.
1. Utilizing technology for efficiency
86% of renters want to interact digitally with their property managers.
47% of property managers list efficiency as the biggest benefit of using technology.
800% ROI increase in property management results just by implementing the right technology.
If numbers are any indication, the above stats are proof that PropTech has not just arrived but is here to stay.
Property management software that offers maintenance management features is one tool that you can utilize. From streamlining and tracking maintenance requests to remotely accessing and updating information from anywhere, and automating processes such as routine inspection or compliance checks, the efficiency benefits of technology are manifold.
Higher efficiencies lead to reduced costs.
Property insurance costs have risen 26%, in the last year alone. Utilities, material, labor, and property acquisition costs have all increased too. This has left property managers to focus more on improving workflow efficiencies to cut down expenses on operations to offset this spike.
A majority of property and real estate companies believe that to improve their efficiency in terms of operations, they will have to outsource technological capabilities. This is because their existing systems are outdated and cannot help them keep up with the evolving market needs.
2. Enhancing tenant experience
According to a Deloitte survey, Property sales volumes dropped by 59% globally, 63% in the United States, 62% in Europe, and 50% in Asia/Pacific so far through 2023.
This means the next 12 to 18 months, can be decisive in terms of transformation, as more and more property management companies aim to reposition themselves strategically. Enhancing tenant experience will remain a key component in setting your business apart.
Some strategies to improve tenant experience include:
As property managers gear up for 2024, establishing and maintaining clear and effective communication channels will be crucial. This includes providing tenants with self-service portals to place service requests and responding to their requests on time. This also means collecting feedback from tenants and acting upon it to improve service delivery.
Quality Amenities and Services
From well-kept common areas to adding new amenities based on tenant demands and emerging market trends such as installing EV charge points in your facilities or high-speed internet connection, the list can go on. Property managers need to make their premises more sustainable, functional, inviting, and safe for the users.
Tailoring your service to meet the exact preferences of the tenants can go a long way in not just retaining them but building long-term relationships. Remember important dates, and let them have a say in how their needs should be addressed. All of this can give tenants a more personalized living experience.
3. Sustainable practices and green initiatives
As of 2022, more than 80% of real estate agents surveyed, view sustainable practices as directly influencing their tenants’ leasing decisions.
With buildings consuming 40% of all energy globally, ESG has come a long way from being a nice-to-have to a critical business strategy.
Having said that, the importance of Green building practices goes beyond saving energy. It includes smart ways to design, build, operate, and maintain buildings. These methods help reduce harm to the environment and make living spaces more comfortable. This fits well with today’s goals of taking care of the planet and improving our quality of life.
Some of the steps property managers, along with other industry stakeholders can take include:
Design: Buildings should be reusable, zero-carbon, and designed using AI.
Build: Implement BIM (Business Information Modelling), use bio-based materials, and favor modular construction.
Operate: Enhance digital processes and centralize data, adopt innovative models for using buildings, and try to create new revenue streams.
Maintain: Protect the value of the assets, using technologies such as CMMS for preventive maintenance. Use smart monitoring devices, and analytics software, to prolong the asset’s life.
Non-compliance to sustainable business practices can lead to hefty fines. Going the extra mile to make your buildings more sustainable attracts eco-conscious buyers looking for greener living spaces.
4. Financial management and transparency
The year-end is a great time to look back at your historical data and performance metrics when budgeting for the new year.
It’s important to list down your income sources in terms of fees for your services and also account for your expenses. This can include overhead, contractor fees, insurance and licensing, etc.
Understand what maintenance activities positively contributed to tenant experience, retention rates, and occupancies. This will help you not just track expenses but also run a cost-benefit analysis.
Some areas to look at include:
- Accurately maintaining your accounts: Consider using Property Maintenance Software that integrates with major accounting platforms.
- Keeping an eye on your cashflows: Use tools that update your numbers in real-time.
- Charting your growth plan for 2024: This can include new contractors you will be adding to your network, additional staffing, or an expansion to your existing property portfolio.
Transparency underpins every aspect of interaction between the property manager, property owner, and property occupant.
It not only fosters trust and builds a strong long-lasting relationship between all parties, but also has a direct impact on the ROI for property owners.
Consider using a tenant self-service portal that will help you keep connected with your clients around the clock. This will also help you address their needs promptly and precisely. It will also let them have full visibility into their service requests from start to finish.
5. Proactive property maintenance and regular upgrades
Regularly addressing small issues can prevent them from escalating into major problems that require significant time and resources to fix.
As property managers enter 2024, they should consider the following in their regular maintenance and upgrade strategies.
- Adopting smart home technologies: Implementing IoT (Internet of Things) devices for monitoring and managing property systems is no longer a choice. It can lead to more efficient energy use, improved security, and enhanced tenant experience.
- Focusing on sustainable upgrades: It’s time to pay more attention to eco-friendly renovations and improvements. This includes things like installing solar panels, green roofing, or EV charge points. It can increase property value and attract eco-conscious tenants.
- Embracing preventive maintenance software: Utilizing maintenance management solutions can help in scheduling, tracking, and performing maintenance tasks more effectively, reducing the risk of costly emergency repairs.
- Evaluating tenant needs and market trends: Keeping up with changing tenant preferences and market trends will ensure that upgrades and maintenance decisions align with current demands and future projections.
Efficient maintenance and strategic upgrades should be viewed as investments rather than just expenses. Well-maintained properties attract and retain tenants more easily, leading to stable revenue streams. Regular upgrades ensure the property remains attractive and competitive in the market, which can justify higher rents and increase the property’s overall value.
As we stand at the crossroads of 2024, we see the property management industry poised for massive growth. It is safe to say that technology will be the main driving force behind it, along with evolving market demands.
Yet, there are a number of challenges that property managers can face in the New Year. To stay competitive, property managers need to adopt emerging solutions, implement cutting-edge strategies, and change their approach toward fulfilling customer needs.
i4T Maintenance, is one such CMMS that helps them add efficiency and transparency to their processes, comply with the evolving regulatory landscape, and keep their properties safe, functional, and profitable.
The main strategies are using technology for better efficiency, improving how tenants feel about the property, adopting eco-friendly practices, being clear about finances, and keeping up with regular property care and updates.
Technology helps by making daily tasks easier, improving how we talk to tenants, and automating things like collecting rent and handling maintenance requests.
Happy tenants are more likely to stay, which means stable occupancy and consistent income.
Being eco-friendly reduces harm to the environment, makes properties more attractive, and can increase their value.
By regularly maintaining the property and making thoughtful upgrades, managers can balance spending with the benefits of higher property value and tenant interest.
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With our cutting-edge technology and in-depth knowledge of how the Field Service Management sector operates, the i4TGlobal Team loves to share industry insights to help streamline your business processes and generate new leads. We are driven by innovation and are passionate about delivering solutions that are transparent, compliant, efficient and safe for all stakeholders and across all touch points.