A Modernizing Market
Since 2019, the pace of growth for the property management industry has increased exponentially, being driven by the skyrocketing demand for these services as well as a renewed focus on digitization and smart home technologies.
AI
One of the primary technological innovations making an unexpected splash in the industry is Artificial Intelligence, as companies are now implementing chatbots and AI powered tools to assist in the management process and cut down on labor costs. These chatbots are far more sophisticated than those we’ve seen in previous iterations, as they are able to automatically respond to tenant inquiries and emails in a matter of seconds at ay time of day, cutting down response times by 75% on average, lightening the workload of leasing teams significantly. Of course, human oversight is still required in the majority of cases, but companies that implement AI solutions are bound to excel over those that stick to more outdated methods of client communication.
Virtual Tours
Virtual property tours are quickly becoming the favorite method of property viewing, particularly among younger buyers with 41% of millennials preferring them to in person guided tours. Not only are these tours freely available online at any time, but they significantly decrease the amount of direct involvement necessary in the leasing process, while also cutting down the time a prospective tenant would need to make a decision on a space.
Smart Homes
With younger buyers/tenants entering the marketspace, door cameras, digital thermostats and app integrated house controls are becoming not only standard, but expected from the properties that management companies oversee. With this development comes the difficult task of balancing the increased overhead of installing and upkeeping such upgrades with keeping rent low enough to still be competitive in the marketplace. Part of finding that “sweet spot” is modifying the value proposition of the space, not only listing the various upgrades to the property, but also explaining how these upgrades would benefit the tenant long term and improve their quality of life.
Summary
Overall, the outlook for the property management industry looks brighter by the day, with many experts considering it to be one of the strongest sectors of the economy. However, it’s vital to seize on new opportunities wherever they are found in order to keep up with the pace of modernization, implementing new procedures, technologies and processes to ensure tenant satisfaction and increase profitability.
