Property Managers Top Issues in 2023
Right now in 2023, property managers are seeing exciting new opportunities for profitability and growth along with threats and a host of macro and micro business challenges.
What’s great is that next generation property management tools are ready to help you easily surmount your business hurdles and achieve your goals. Before you look at these modern solutions, it’s best to review what really is causing your frustrations.
Surveys of property managers suggest you are plagued by:
- portfolio growth with mixed portfolios
- demand for more services and additional services
- mounting competition from other property management service startups
- training and retaining property management staff
- rising inflationary and other costs
- regulatory compliance, and time pressures
Day to Day Challenges Resolved?
For the busy manager, a forest of daily issues obscures what the problem is — too much work, insufficient staff skills and tools, rising costs, and decreasing profit margins. And then there’s the stress of uncertainty.
Is staffing your real key problem as polls suggest? It might be. But will you ever acquire your dream staff? And are you asking your staff to manage the outfall of higher level problems?
Small to medium sized firms don’t have huge training or staff development budgets. They must hire, train, motivate and manage lesser qualified staff, and retain them with a modest payroll. Expert, experienced and certified professionals aren’t often available. That challenge might be resolved by using next generation software.
For most landlords or SMB property managers, enterprise level solutions simply aren’t appropriate. You don’t have a 20,000 door multifamily property service. Finding a product package with good customer service for your mixed rental portfolio is the right choice.
Everyone needs guidance on finding, reviewing, evaluating and purchasing the right software and provider.
Survey Insights into Manager Challenges
Let’s take a deeper look at the results of a Unicom poll and how it relates to what’s happening for property management companies. Here’s the numbers of PMs who cited specific issues as significantly challenging:
- hiring and maintaining quality staff – 27
- growing revenue – 15
- damage and unexpected maintenance costs – 14
- time management – 9
- controlling costs – 8
- finding and keeping tenants – 6
- managing tenant complaints – 6
- accounting tasks – 3
- government regulations – 3
- communication to staff/tenants – 2
- inspection – 1
- marketing – 1
Obviously, their current technology solutions aren’t solving these problems.
49% indicated that “hiring and maintaining quality staff” was significantly challenging.”
The study didn’t indicate how they were running their businesses or about their levels of automation and proptech solutions. Given that the economy and rental property markets are growing, cap rates have flattened, and employee shortages are happening, costs have risen, these challenges will only increase each year ahead.
45% indicated that reducing operating costs was significantly challenging
Growing Property Management Revenue
There are bigger issues some property managers aren’t delving into.
One of them is their business model. The matter of revenue models, pricing models, operations models is really about creating a path to profitability.
Models help you evolve to create the best value proposition, find the best landlords and rental properties, rather than just improving the low performance assets you have.
Property management software doesn’t just reduce operating costs and ease staffing issues, it’s a tool for finding higher performance, and building your business around success, rather than just accepting whatever leads have come your way. Read more on maximizing your performance.
Your New Goal — A Platform that Eases Your Business Challenges
A great software platform also tells future landlords you can handle the workload and do even more.
What we know about property management companies is that costs are rising in an unmanageable way. Vacancies will rise, costs will rise, taxes will rise and rent prices will trend downward over the next 5 years, after the pandemic spending spree.
We’re back to the business conditions of 2018, only in 2023, economic growth is much lower.
As rent prices fall, a simplified yet powerful property management platform — one designed to automate daily transactions and accounting, communications, maintenance, and budget management is your key asset.
Be the property management company they’re look for. Schedule a trial of ManageCasa now. There is no better use of your time today. Your company is worth it!
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