People can’t comprehend the rate at which the world and technology are advancing.
For instance, it often eludes them that queen Cleopatra lived closer to the invention of the iPhone than she did to the construction of the Great Pyramids.
The truth is that we’ve advanced so much in the last two centuries and that this advancement is quickly picking up the pace. This places us in an era where, every year, we have new trends and inventions. More importantly, this penetrates every aspect of our society and every single industry. The property management industry is no exception to this rule.
In 2022, we already saw some massive changes and revolutionary trends. For instance, virtual tours for potential investors and tenants have become much more widespread. Other than this, there’s been a massive evolution in a manager-resident relationship, for instance, in the form of online rent collection.
With all of this in mind, it’s more than clear that both progress and evolution are inevitable. Here’s what you can expect from 2023 if you are in the property management industry. To keep things simpler, we’ll split these innovations into two categories: trends and technology.
First of all, with software and hardware innovation, it will be a lot easier for tenants and property managers to get what they need. Keep in mind that some of these technologies are already in use. They’re just not widespread enough to consider their presence “significant” according to the industry standards.
One of the biggest obstacles in closing a deal with the tenant comes from the inability of a tenant to fully immerse themselves into this new place. With AR technology, they can use their device to see what the place would look like with their furniture or color scheme. Simple 3D modeling software can give them a similar impression. Some of these tools (like SketchUp) are so easy to use that they’ll be handy even for complete beginners. This can be used as a bargaining tool and a negotiation aid.
The use of AI and machine learning can help streamline every single process in the property management industry. Ranging from how tenants pay rent all the way to how they report problems. With so many problems resolved automatically, things will quickly turn for the better. Keep in mind that the bulk of the property manager’s job is administrative. While it’s too nuanced for software (even a good one to take over), with the help of machine learning, we might be closer to this than you expect.
When it comes to process automation, there’s nothing that can make a difference as quickly as the blockchain. The thing is that, with the security and accuracy provided by this technology, you can set the conditions that, when met, certain actions are executed. In theory, this can enable contactless contracts and make them even more reliable than their traditional counterparts.
The concept of SaaS gives optimal service to customers with minimal investment. In other words, you get to choose which services you want to use/provide and pay for these services exclusively. Sure, the individual services don’t have to be behind a paywall. It’s also possible to set up a subscription-based system, which already aligns perfectly with the property management industry. With so many already using managed IT services, a transition here would take only a slight step.
When it comes to the trends that, based on what we’ve seen so far, we can expect in 2023, there are quite a few surprising entries. Keep in mind that the bulk of these merely upgrade on the existing trends. However, there are quite a few new concepts worth looking an eye out for.
It’s not just the technology that matters but the concept of its use/demand. With more and more people interested in property management services, it’s important to keep in mind that there’s a growing demand for property management technology. This way, you get to streamline and automate all these tasks via specialized software and the use of personal assistants. Otherwise, you would have to use a plethora of platforms (accounting software, scheduling software, etc.). This way, you get it all in one tool.
Another thing worth keeping in mind is that, due to an increase in rent costs, a good tenant is now harder to find. This means that landlords and property managers will have to work extra hard but also, but they’ll have to invest more in the vetting process. Examining the credit rating of their tenants, looking for their criminal record, and conducting a more thorough interview are just some of the things worth considering. Keep in mind that, seeing as how there are fewer valid tenants than ever before, you also need to increase your appeal to them. This is not a simple matter either.
Fixed rents are a thing of the past. The truth is that there are so many moving parts in the property management industry that no one feels comfortable just outright agreeing to the conditions in place. You don’t want to lose a potential tenant just because you insist that they pay you on the 5th of the month rather than on the 15th. Lowering rent money a bit is also acceptable, but it doesn’t have to cause a financial loss. You can ask them if they compensate for this by painting the place or doing some extra work around it. Keep in mind that if it’s mutually acceptable it’s all great.
At the end of the day, it’s important to keep in mind that some of these trends are huge, but it will take a while for them to become present in big enough numbers to make a difference. After all, you already have the use of 3D modeling, AR, VR, blockchain, and SaaS in this industry. However, they’re not as dominant to be considered a trend. As these techs and trends become cheaper and more accessible, more and more property managers will have a chance to explore them.