Each year, there are new trends for each industry. They give business owners, investors, agents, customers … etc. an idea of where an industry is headed and if any changes are warranted. These changes many incur additional costs and materials as well as time and planning. No one wants to be caught off guard or lose an opportunity. Property management is a vital part of the real estate industry. It must adhere to yearly trends to say profitable, especially since there are more renters than homeowners in 22 major cities in the United States. Below are some of the trends we can expect for next year.
- Technology — We know that technology was an important trend last year, and it will be again for 2020. It impacts almost every area of property management, from the front office to apartments. There are new home security systems to give both landlords and renters peace of mind, such as Cove and SimpliSafe (in addition to security companies). Efficiency is another concern. Home automation or hubs allow renters to save money and be eco-friendly. Hubs can be programmed to turn on or off lights, send alerts from sensors for water leaks and open doors, and control temperatures. They give renters control over a number of devices from their phone or tablet. For new tenants, smart contracts have made the leasing process much simpler. These digital contracts are self-executing in that certain conditions must be met in order for the contract to be activated. Once activated, the contract cannot be altered. Smart contracts eliminate the need for third parties, which saves time and money.
- Incentives — We have all heard of incentives to buy products, such as cars and homes. There have been incentives for renters, but they were discounts or a free month of rent. Now, property managers can send digital rewards in the form of e-gift cards, where renters have a choice of what to spend their e-gift card on (e.g. Reward Link).
- Millennials — They are the largest demographic in the United States. So it makes sense that property managers would cater to them. Millennials want to be able to pay online as well as receive credit on their credit reports for making consistent payments. Aside from affordable rents, millennials want apartments with the latest technology and amenities (e.g. updated bathrooms and wi-fi). Millennials also want to be part of their communities. Thus, having a common area and/or events are very appealing to them.