Property management is a thriving industry, as indicated in AppFolio’s 2023 Property Management Benchmark Report. The report aims to help property managers compare their experiences in the current economy with their peers in other industries. Despite economic pressures, the report finds that owning or managing residential rental property is currently favorable. The survey involved nearly 5,000 employees at U.S.-based property management companies and found that risks vary among companies of different sizes. Inflation and delinquencies are the biggest risks in the coming year for nearly half of the organizations surveyed across all sizes. Larger organizations with specialized roles and more employees are more likely to face challenges in retaining current employees.
The report shows that property management companies see tremendous opportunities for both expansion and improvement in 2023. Adding new units to their portfolio is the biggest opportunity cited by 55% of the companies surveyed across all sizes. Streamlining and automating operations are also considered significant opportunities for all sizes of property management companies.
The survey reveals that there is a high level of agreement across all business sizes regarding the opportunity to streamline financial functions for residents and their businesses. All three business sizes identified processing more rent payments online and improving the accounts payable process as opportunities. Property management organizations with more than 5,000 units under management are more likely to use every type of property management technology, but smaller organizations are also examining the benefits of technology designed to serve specific functions.
Despite the risks and challenges, property management companies of all sizes believe there is great upside in the opportunities they’ll have regarding revenue and income. In fact, 81% of all the residential property management companies surveyed expect revenue to increase in 2023, with larger organizations being the most optimistic. The report concludes that property management companies have an optimistic outlook despite economic challenges and are seeking ways to expand their portfolios and become more efficient.
AARE Property Management has a team of skilled and highly trained property managers with ample experience in the real estate industry. They approach their work with care and respect for the properties under their care, demonstrating a deep concern for the well-being of both landlords and tenants, and upholding best practices at all times.
If you’re looking for a property management company that values expertise, care, and accountability, AARE is the answer. Visit us online at https://aare.com/property-management/ to learn more about our services and how we can help you achieve your property management goals.