Dangerous Trends in the Property Manager Industry

Property Manager Trends – As the property management industry continues to evolve, we are devoted to offering our clients reliable and up-to-date information. As such, this article was recently updated on October 20, 2022. Our goal is to provide our readers with the most accurate information on property manager trends and the latest property management industry report.

This is a 3 part series of educational articles dedicated to property managers. Home Painters Toronto underwent a study based on statistics, trends, and research on behalf of property managers and what they are to face in the precarious future of 2024 and forward

With a global pandemic affecting practically everyone, property managers are having to make difficult choices that affect not only themselves but their property’s value and reputation.  2021 and 2022 can be seen as outliers, but their legacy will affect property managers for years to come.

 

Part I: Will Deal with Dangerous Trends in the Property Management Industry

Part II: 5 of the Biggest Challenges For Property Managers

Part III: Solutions and Steps These Property Managers Can Take to Alleviate These Challenges

Part I: Dangerous Trends in the Property Manager Industry

Trend 1 – With the fall of the Real Estate Market in 2008, Rental Property Demand Has Been Going Up

This is good since there is a higher demand for rental vacancies. But bad because there is more competition for those renters. Can you keep up with this increase in demand for vacancies? Canada is facing a housing crisis in 2022. Young adults and recent graduates do not have the luxury of buying property for the prices they were in 2003.

Trend 2 – Too Many Property Managers in the Market

There has been an over-saturation of residential and commercial property managers. As well as property management companies in the marketplace today.

Home Salesman Stretches Holding Black Pen

Ibis World says that there are 307,621 property management firms in the United States in 2023, which is a 4.1% increase from 2021. In Canada alone, there are 32,260 property management firms, a growth of 3.1% from 2021. But what about the management staff?

How Many Property Managers Are There in the US?

According to Ibis World, in 2023, the US property management industry employs 877,995 people. This number increased by 1.8% between 2017 and 2023.

The average property management business currently employs more workers than it did five years ago. And the average number of employees in a property management company is currently 2.8. During the same time period, there has also been an increase in revenue per employee.

Employment-wise, the property management industry is the 48th largest and ranks third among the real estate, rental, and leasing industries. Therefore, it is imperative that you HAVE to differentiate yourself from your competition. Or you will lose market share to them.

Trend 3– Inevitably, In A Bad Economy, Owners and Tenants Are Trying to Find Any Way Possible to Cut Expenses and Avoid Having to Pay Large Maintenance Cost Fees

Trend 4– Lawsuits and Liability Issues Way Up

  1. More landlord vs tenant disputes than at any time in history. The number of lawsuits is at all-time highs
  2. Small businesses such as property management businesses are sitting ducks for legal actions. According to the U.S. Chamber of Commerce, lawsuits cost small businesses $88 billion a year.
  3. Due to the Internet and consumer education. Renters are more aware of their tenant rights than at any time in history.  In particular, they have more legal rights, more demand for their privacy, more maintenance demands, and insist on superior service.
Property Manager Dealing with Clients

Trend 5– The Number of Good Tradespeople Going Up

  1. The younger generation is tech-savvy, but not trade-savvy. This is because assets are harder to come by in today’s world of 2023.
  2. Baby boomers trades are retiring.
  3.  The number of good tradespeople is actually increasing due to online trading with apps. Making it more accessible for younger adults
Hands Agent Client Shaking Hands After Signed Contract Buy New Apartment

These are just some of the dangerous trends that are threatening the industry as we know it today. Property managers have to be on their toes to stay ahead of these trends. And make sure they don’t get left behind.

There Are A Lot of Estate Management Issues Out There

And if you want to stand out, then you need to keep up with these trends and make sure you adapt to them quickly.

5 Biggest Challenges that Property Managers Face in 2024

Curious about the 5 biggest challenges property managers face in 2024? Read more to see of this series tailored for property management insight!

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