Before you make the switch
The outlook for 2023 remains positive despite some potential obstacles.
Key takeaways:
- Advancements in technology and automation are fueling new ways of managing properties.
- A renewed focus on residents is necessary for growth within the current work-from-home generation.
- Property managers are needed now more than ever, as the business of pandemic-era community management grows increasingly complex.
As the property management industry heads into 2023, it stands on the precipice of substantial growth, but also major changes and challenges. In 2021, the global market was valued at $16.47 billion and is projected to hit $39.51 billion by 2030, which is an impressive compound annual growth rate (CAGR) of 10.21%.
Yet this optimistic outlook comes with a unique set of obstacles. These include delays in payments, mounting debt, staff shortages, rising costs and wages, new regulations, and startups muscling in on the sector.
Given all of that, what trends can property managers expect to see in 2023? We’ll answer that below.
New tech and automations
Property management technology grows by leaps and bounds every year and has dramatically changed how managers do their daily work. It brings increased organization and efficiency (and lower costs). There are seemingly new innovations around every corner. The following are just a handful:
- Cloud computing. Perhaps the simplest and most powerful innovation on this list, cloud computing untethers property managers from their desks and allows them to communicate with residents, process payments, or engage vendors from anywhere. And they can do all of this from their phones or laptops.
- Artificial intelligence (AI). The modern community manager needs a smooth, efficient workflow and AI is the ideal tool to achieve that. AI uses a powerful combination of document intelligence, process orchestration, and connected systems to identify important data and coordinate workflows so it gets to the right people or systems. When a new resident applies for a mortgage, for example, AI streamlines what was once a time-consuming process so that all they have to do is submit an online application along with a picture of their driver’s license to receive an approval in just minutes.
- Augmented reality and 3D modeling. With construction costs continuing to rise, a 3D model can save time and money by allowing managers to see a detailed view of a project in advance, and augmented reality lets managers and prospective residents walk through a space and customize it, all before a single brick is laid.
- Security. It may seem obvious, but it’s worth repeating – a safe property has more value to its residents and community managers. Mobile technology allows them to change passwords or building entry codes, as well as monitor video surveillance, and grant or deny building access. Some properties even have drones keeping an eye on things from 30,000 feet.
Community association management was once thought to be immune to digital innovation. 2023 looks on track to prove that notion false.
Management efficiencies
The cost of doing business across all sectors continued its upward trajectory in 2022, particularly in construction and other related industries. Although it’s predicted to abate somewhat into 2023-2024, it would be wise for property managers to find efficiencies across utilities, operations, and wages to ride out the current wave of ups and downs. The right property management software can help.
Add to these challenges the emergence of property management startups, which have already disrupted the industry. These organizations are rich in seed funding and more are entering the market every year. They don’t waste valuable time and resources on paper spreadsheets, checks, or receipts, a practice that makes them efficient and able to quickly respond to changes in the market. The more efficient your management practices, the better equipped your company will be to take on these new players in the arena.
A renewed focus on residents
In the past, people could only hope to find whatever lodgings were close to their jobs. For today’s residents, the picture is a little different. Now, working from home (or from anywhere) is a viable alternative to a career strapped to one particular office in one particular neighborhood. In fact, by the end of the year, 25% of jobs in North America are expected to be remote, with more on the way in 2023. Residents can now live where they want, and property managers who make resident satisfaction a priority will have a rosier outlook for 2023 than their less-accommodating counterparts.
Rising demand for property management professionals
Managing communities in a world still greatly impacted by the pandemic is complex, with a perfect storm of problems coming from staff shortages, inflation, and supply chain delays. Property management companies assist with necessary, but time-consuming, tasks such as payment collection, maintenance guidance, compliance with new government mandates, and turnover management.
Despite persistent economic uncertainty, experts believe that inflation has peaked and the property management industry is poised for substantial expansion. Nearly 80% of property managers have experienced growth since 2020, with the majority of them seeing expansion of more than 25%. This trend is expected to continue into 2023.
The road ahead
Although 2023 will likely bring new challenges and changes to the industry, property management firms can meet them with the proper strategies, business models, and management tools. Property management software can help simplify day-to-day operations and provide easy ways to communicate with residents and vendors.
Too often, managers rely on multiple software solutions to effectively do their jobs. But Enumerate Central provides customizable tools for accounting, owner engagement, board relations, portfolio management, and digitized AP and AR payments, all in one place. If this sounds like the solution that’s right for you, then contact us today for a free phone consultation.
