When we’re talking about real estate and property management, are things exactly where you expected them to be? What do you think will happen in the local market and industry-wide next year?
There’s a large amount of data available to property managers and real estate experts, and we’ve been analyzing it to find the trends that we believe are most important to our rental property owners and investors. This has been a strange year; the real estate market has begun to settle a bit after a couple years of crazy competition. There’s still a large population of people dealing with the impact of crippling inflation on household budgets, and mortgages are more expensive than ever.
We wish we had a crystal ball to tell the future, but we can’t rely on magic and maybes. We have to look at the actual data that tells us how things are shifting and where we can expect them to move. We want to be able to position you for success the rest of this year and into next year.
To that end, we’re talking today about some of the property management industry trends we expect to see in the future. Some of these will come as no surprise – technology will continue to make our jobs more automated and efficient, for example. A lot of the tech tools coming online now will also help you provide a safer, more efficient rental property to discerning tenants.
There are also a few trends that may surprise you, too. For example, tenants are more empowered, and you might expect some negotiations at lease renewal time rather than a simple agreement to renew. There’s more of a focus on tenant satisfaction and service.
Let’s take a look at some of the anticipated trends that we find most interesting as Arlington property managers.
Technology: How We Use it and How We Offer it
Have you tried ChatGPT or any similar Artificial Intelligence (A.I) platform? If you use Gmail, you may have noticed that Google is now offering to write your emails for you. A.I. is here, and it’s quickly being normalized. This can be a source of contention, and it can also be a huge opportunity.
For Arlington property managers, we know that it can help us do our jobs and serve our owners and tenants more efficiently. A.I. has improved systems and saved time in very non-invasive ways.
- A.I. automates tasks such as responses to questions, but it’s not going to replace your live property manager. Human connection is still critical, especially in our industry.
- This is more than a trend. A.I. will likely be used more consistently by property managers, real estate agents, leasing agents, and even vendors and contractors. There’s a lot it can do to help with more automated functions.
- The artificial intelligence we use in property management can quickly process large amounts of data. There’s more data than we can possibly make sense of as humans. The machines we utilize can process it right away and that will help us with things like pricing your property better and screening your tenants more thoroughly and consistently.
- Costs are minimized with A.I. There are fewer errors and oversights.
That’s the technology we use. There’s also the technology we provide.
Tenants are increasingly looking for properties that offer smart home technology. This is an important trend that we tell all of our investor and landlord clients to watch for: tenants wanting and needing extra tech in the homes that they rent.
The remote working trend means that tenants can live anywhere they want, and because they’re working from home, they want more ease and convenience. They want access to technology.
Residents we talk to are currently using and enjoying video doorbells, smart thermostats, and apps that allow them to turn on lights and lock doors remotely.
The appreciation high quality tenants have for smart home technology will only grow, and the property owners and managers who can provide it will have an easier time attracting and retaining high-quality residents.
There are additional benefits to installing smart home technology in your investment properties.
- By remotely managing various systems within properties, such as HVAC, lighting, and security, energy costs can be reduced for property owners and for tenants, even while efficiency and productivity is increased.
- Tenants will appreciate having greater control and convenience. They’ll respond favorably to rental homes offering smart home technology.
- Smart locks allow remote access, which is both secure and convenient. The smart locks or digital keypads allow for easy property showings, and they also allow for maintenance workers to get inside the property without someone running over there to meet them or make another key.
When you’re willing to invest in these technologies for your rental property, you’ll find you have access to a variety of advantages, from efficiency leasing and managing and maintaining your property to cost-savings to increased tenant retention and higher rental values.
Tenant Satisfaction Trends
Customer service is not a new trend when we’re talking about property management in Northern Virginia. In the last few years, we’ve strived to provide great customer experiences. This is an excellent way to grow a business and it’s a trend that will continue to develop into more meaningful outcomes.
Landlords and property managers who are willing to invest in tenants will find those investments to be worth their resources. More strategic advertising, more objective tenant screening, and a commitment to creating an enjoyable tenant experience are some of the things we expect to see.
This is also the competitive advantage that independent real estate investors have over those large institutional companies. You cannot provide the same level of customer service when you’re a large and lumbering company like the ones we expected would swoop in and take over the entire industry (they haven’t.). When you can provide a hyper-local and detail-oriented rental experience, your tenants are going to appreciate what you’re doing and where they are.
If you have any questions about property management trends and what to prepare for, please don’t hesitate to contact us at Comfort Property Management. We lease, manage, and maintain investment properties throughout Northern Virginia, in Arlington, Alexandria, Fairfax, Falls Church, McLean, Ashburn, Sterling, Springfield, Reston, Chantilly, Manassas, Centreville, and Herndon.
