Property Management Trends
As a property owner or investor, staying on top of the latest trends in the real estate industry is crucial. These trends can help you make smarter investments, get more profits from your properties, and provide the services and amenities that renters expect. We have gathered the most important rental property trends for 2023, from renter demographics to financial trends and renter expectations.
According to Buildium’s 2023 Industry Report, the renter demographics are constantly in flux. Heading into 2023, there will be fewer one-person households and single-parent family renters, but landlords can expect an uptick in renters who are couples with kids, as well as multi-generational households. Brokers International Property Management understands these trends and can help property owners adapt to them.
The rental property trend to watch is the shift from urban areas to the suburbs. With more individuals now working from home, the market has seen a 12-percentage-point shift away from urban neighborhoods. Over two-thirds (68%) of Buildium’s survey respondents now reside in suburban and rural areas. Brokers International Property Management understands the shifting market and can help property owners make decisions based on this trend.
The cost of living, inflation, and increased wages are evolving in local areas. Rental affordability has worsened as 24% of families spend more than half their income on rent. It is important to work with a property manager to keep rent affordable for tenants while not cutting into profits. Brokers International Property Management can help property owners understand these trends and find ways to make their investments profitable.
Renter expectations are changing, and technology is at the forefront. Automatic online rent collection, online maintenance request forms, 24-hour emergency maintenance hotlines, energy-efficient appliances, remote alarm and thermostat capabilities are among the top technology-focused services that renters want. Brokers International Property Management understands these expectations and can help property owners meet them.
Partner with Brokers International Property Management
Partnering with Brokers International Property Management is one low-stress, high-ROI way landlords can stay ahead of property trends in 2023. Brokers International Property Management knows how the market is changing and what renters want. They can help property owners handle administrative paperwork, find high-quality renters, and market their property in a competitive market.
As a premier real estate investment management company, Brokers International Property Management has a team of experts with years of experience in the real estate industry. They provide a wide range of services to meet all your property management needs, including tenant screening, lease negotiations, maintenance, and repairs. Brokers International Property Management believes in transparency and open communication with their clients, providing regular reports and updates on the status of your property investments.
In conclusion, staying on top of rental property trends is essential for property owners and investors. Brokers International Property Management can help you navigate these trends and adapt your investments to meet changing renter needs. Contact Brokers International Property Management today to learn more about their services and how they can help you achieve your investment goals.
According to The Property Manager’s Guide to Attracting and Retaining Small-Portfolio Investors, a report published by Buildium and Propertyware, 52% of rental owners now identify as intentional investors, an increase of eight percentage points since 2018. Accelerated by the pandemic, the market has shifted from accidental landlords or those who hold onto a property for personal reasons, to those who are looking for income from the start.
There are three typical ways people enter the real estate realm. While the majority buy properties to rent as intentional investors, many stumble into real estate investing and become overwhelmed quickly. Which type of real estate investor are you?
- Intentional Investor: Intentional investors make up 52% of real estate investors. They buy properties with the express intention to rent them out for profit. This type of investor is likely to own multiple rental properties, have rental properties that are consistently profitable, have plans to acquire new properties over the next two years, and identify as a full-time landlord or real estate investor.
- Unintentional Investor: The unintentional investor makes up nearly one-quarter (24%) of all real estate investors. This type of investor has stumbled into a profitable real estate situation either by necessity or as a hobby. The unintentional investor is likely to own single-family rentals, utilize their rental as passive income, have a full-time job that’s unrelated to their rental properties, and see residential rentals as an intelligent investment in 2022.
- Accidental Landlord: The final category of real estate investor is the accidental landlord, coming in at 24% of all investors. This type of investor has become a landlord completely by accident. They are likely to own only one property, rent out a property they purchased originally to live in as a primary residence, inherit property unexpectedly, have no plans to expand their portfolio, and feel overwhelmed.
Across the board, whether intentional, unintentional, or accidental, small-portfolio investors tend to fall into one of four categories. These include DIY landlords, growth-focused investors, distance investors, and profit-conscious investors.
However, being a real estate investor is not always smooth sailing. The top five struggles of real estate investors, as reported by Buildium in their 2022 Small-Portfolio Investor Report, include maintenance and repairs, accounting, bookkeeping, and taxes, finding and working with a property manager, renovations, and legal issues.
Partnering with a professional property management company can be invaluable to all types of real estate investors. Property managers save investors money through their ability to negotiate better contracts with various professionals. They can also offer legal advice, have better technology, access to better quality contractors, act as a local expert for distance investors, and provide freedom from worry.
Investing in real estate can be an excellent way to generate passive income and build wealth. However, it’s crucial to plan ahead and educate yourself on the basics of real estate investing and the challenges you may face in the process. Different types of small-portfolio investors face unique struggles, and partnering with a professional property management company can help alleviate stress and ensure your investment is successful.