Kevin Trainor
With changes in technology, demographic shifts and fluctuating client demands, those in the property management industry have a responsibility to keep up with the trends that are certain to have an impact on the trade for years to come.
Whether for a residential property condominium complex or a commercial office park, a unique blend of being proactive and reactive to the needs of the residents and tenants that management firms serve is of paramount importance. Communication is key and today’s means of communicating is fast and sophisticated. Clients expect speed, service and the proper use of technology when accessing data and financials. New cloud services, automated software in addition to the already “old–school” mobile devices are playing a fundamental role in how we conduct business.
We are seeing an uptick in the influence of Millennials in the tenant market; this is a demographic group that demands high tech solutions. Without painting too broad a picture, it’s safe to say that those in the Millennial demographic are “app happy” and expect digital amenities, such as free WiFi or smartlocker storage to accept online orders. In the absence of a property management firm’s ability to deliver with new age speed, you may be overlooked, despite decades worth of experience and a solid reputation.
Keep in constant mind that client expectations are set by the general standards of today. People can deposit a check with a tap of their smartphone, have a driver at their door within two minutes of request and order practically anything online. Minutes count when it comes to answering a call, whether for a broken window, a billing issue or snow plowing. Don’t let a call slide or a task delayed for competition is just around the corner. People have become conditioned to expect easy and immediate response. Service, service, service is fast gaining speed on location, location, location.
Another trend is an anticipated spike in housing construction over the next five years, as renters are evaluating whether to buy or rent, which could make for a buyer’s market – a potential boon to the condo side of property management.
New trade tariffs could result in an increased number of jobs across the country. Combine that outlook with rising wages and the so-called “new economy” is forecast to positively impact every major city throughout the states, translating into new single-family homes, condos, townhouses and multifamily complexes – the property management industry’s dream!
Tech Supports ‘Accidental Landlords’
On the downside for traditional property management firms is the growth of “accidental landlords” who after purchasing rental income properties recognize the financial opportunities inherent to property management.
Be on notice – these newcomers will not bring experience to the table but will put property management software to good use. So, in addition to your traditional competition, there may be a whole new lineup of tech–savvy competitors to contend with who employ software to conduct everything from basic accounting, time management, tenant screening and online payment to property maintenance and repair services.
And don’t discount the increasing interest in and utilization of analytics. Often referred to as “machine learning,” analytics is the discovery and communication of meaningful patterns in data and can help determine industry needs through the use of algorithms and statistical models.
The need to specialize is mounting in virtually every industry, property management included. We can no longer rest on old-fashioned laurels of service with a smile. Finding a niche where experience, knowledge and skill can shine is critical to that all-important brand. Maybe it’s student housing or vacation rentals, short-term rentals or high end leasing. The property manager of 2019 and beyond needs to find a market that provides a business advantage, keeping in mind that specific licensing and training may be required.
Investors beware! The high housing and rental prices in cities including Boston are already eliciting cries for rent controls and those cries will only get louder in the coming months. This could lower the boom on many investors plans. Certainly an aspect to keep an eye on.
Attention to detail is one element of the industry that will never go out of style. Anticipating clients’ needs, doubling down on service, meeting and exceeding expectations are the tried and true methods of conducting a successful business. By combining those time-honored approaches with the use of contemporary technology, the demand for your properties may be greater than ever.
Kevin Trainor is president of Bay State Property Management, a Quincy–based property management firm.
