Originally Published December 9, 2019
The year 2024 promises to be a thrilling chapter in the evolution of various industries, with property management standing at the forefront of this transformation. As we venture further into the new decade, the real estate landscape continues to evolve, presenting abundant opportunities for growth and innovation.
In an era where investors are expanding their rental portfolios, property management companies are indispensable in providing essential services. However, the key to success lies in adaptation and evolution. As stagnant workflows proved detrimental in the past, the year ahead demands a proactive approach to staying relevant and competitive.
Embarking on the journey of navigating the forthcoming trends can be daunting. This post aims to shed light on emerging trends expected in the upcoming year, empowering property managers to gain a competitive edge through informed marketing strategies.
Over the past years, many marketing efforts have been directed toward attracting millennial customers. However, the spotlight recently shifted to a new generation: Generation Z (individuals born after 1996), projected to comprise 27% of the workforce by 2025.
Having grown up surrounded by technology, Generation Z expects property management systems that are technologically advanced and offer streamlined customer service. They are digital natives who value automated services and may gravitate toward businesses that provide such conveniences. Property managers should employ unique and digitally savvy marketing strategies, such as innovative inbound marketing, to appeal to this tech-savvy generation.
With Generation Z entering the housing market, there is a rising demand for ways to build credit. Tenants from this generation may face the dilemma of needing credit to build credit. Property management companies that offer solutions to this problem can stand out in the market.
Numerous online companies now report rent payments to credit bureaus with just a click, helping tenants build their credit. Positive credit reports incentivize timely rent payments, benefiting property management companies and tenants alike.
Despite millennials transitioning into homebuying, financial challenges stemming from rising childcare costs and student loans push many individuals toward renting rather than buying. Urban markets like DFW, Chicago, and New York City continue to experience growth in the rental market.
While apartments remain a solid investment, managing numerous tenants can be challenging. Single-family units, particularly in markets like DFW, offer attractive opportunities for investors. Property management systems that automate the tenant experience enable efficient management of rental units of all types.
Embracing rental communities and catering to their needs can help property management businesses grow alongside the increasing demand. As the number of managed properties grows, the demands shift, requiring specialized workflow automation tailored for property management.
The era of smart technology has permeated various aspects of our lives, including our homes. Most smart home users recommend adopting smart home technology, as it saves time and reduces environmental impact.
Property management companies can attract renters by collaborating with homeowners who have upgraded their properties with smart home technologies or by assisting clients in upgrading. Incorporating smart home technology demonstrates that a property management business is forward-thinking and can justify higher rental prices, making smart homes a lucrative investment for homeowners.
As older millennials enter their child-rearing years, there is a growing trend of migration toward suburban areas, often referred to as "Hipsturbia." This shift emphasizes the demand for walkable cities and homes near community amenities, driving up demand for rentals in such areas. Properties in walkable urban areas can command rents significantly higher than average.
To optimize property management marketing efforts, it is essential to highlight the walkability and proximity to community attractions in property listings. Incorporating keywords like "close to," "walk to," and "within walkable distance" in marketing descriptions can enhance visibility among prospective tenants.
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