A New Definition of Property Management
With the pandemic ending, we may enjoy a much brighter outlook for the business of rental property management in 2023.
Yet, that is a prediction, perhaps even a description of the market and the opportunity for rental owners and managers. Without realizing it, we allow news stories and opinions create our definition of property management.
These definitions in turn skew landlord’s business decisions such as investing in new properties and adopting new software. Too often, these outdated definitions taint the real picture of opportunity and how you should progress and manage your properties and tenants.
In the last few years, landlords and property managers jumped on the technology bandwagon, then saw their business results soar — due to reduced cost, improved service, better budget management, and more satisfied tenants.
That alteration in their understanding of property management lead to real business and profit changes.
Tech Ushers in New Definitions of Property Management
Property management pros need to define this industry as opposed to tenants, politicians, schools, and financial people. It’s your definition that matters and it should reflect the full scope of value you generate.
Old definitions are ushered out. New management software platforms and better business models are helping old and new property management companies scale up, improve services, and increase profitability. Less work, happier tenants, less stressed staff, and owners, along with bigger operating budgets are the net result.
Property management is being better funded because it’s worth it. So that revised definition is changing outlooks and expectations. Property management careers are far more attractive, and better paying, which is why job hunters are showing interest.
This excellent outlook will draw in an additional 100,000 new property management companies in the next few years according to research. The service model is changing given SaaS delivery platforms via the cloud, automation, AI, funds, and fresh, new ideas coming into the sector.
Technology Serving a New Business Environment
The business and the skill set required to manage properties has definitely changed. The trend is toward better service, responsiveness, and enhancing the rental experience for tenants. The path to renter satisfaction is via modern property technology and improved rent yields will happen through efficiency.
The image of landlords and property managers is catching up to that of other respected industries, and tenants are expressing more satisfaction with property management firms. We’ve learned that changed, educated, informed and updated perceptions can evolve many ways — rising profit, new tech tools, and chronic housing shortages.
New Property Management Company Picking Up a Big Edge
The new technology platforms such as ManageCasa are more powerful, easier to use, are scalable via the cloud and help property management firms deliver more profitable services (digital) while lowering costs.
As the property management sector is modernized, there is opportunity for new landlord/owners entering the space to win great tenants, and make more profit using technology to deliver new services in a more efficient, and tenant-friendly manner.
This will create a big advantage for property management business startups as they surpass older firms unwilling to move to digital management tools.
Today, we’re taking a new look at what a property management professional does and how software and the market is changing their work. We want to focus on the profit opportunities of tomorrow.
Industry stats show the economy will explode the market for renting and rental management in the next 5 years. The old definition of property management does nothing to help us understand or build excitement about the future of this business.
An Outdated Definition
The current definition of property management is the management of buildings, administration, hiring, supervision, and maintenance services leaves little room for imagination, innovation and scaling up, at a time when we need to. That makes property managers more of a commodity.
Becoming that special, leading brand with new in-demand services is what we write about here on the ManageCasa blog. Our property management software platform is the foundation for it.
Let’s redefine the management of property in a series of learning steps:
- Definition and Roles
- Workflow Processes
- Profitable Rental Assets
- Tech Automation, new services, iOT, and expertise
1. Property Management Defined
The Business Dictionary defines it as the process of managing property that is available for lease by maintaining and handling all the day-to-day activities that are centered around the piece of real estate.
The standard definition is about the day to day management of real property — a task and not the outcome. The new definition describes modernization, increasing tenant satisfaction, and owner profit.
What does a property manager do now and where will they work? How many properties and renters can a manager handle? Who is hired to do maintenance and repairs? How does a property manager get paid? With margins falling, how will property management companies stay in business? Those questions lead to the wrong conclusions about the value delivered.
Check out some companies in Hawaii, California, Arizona, Florida and Illinois and get a feel about their business models and services offered. Could a property manager rent out additional assets, services, and offer expertise to grow profit? Could low profit maintenance services be outsourced and other more profitable service niches be focused upon?
2. Workflow Processes: Pen and Paper to Automated Services
We’ve progressed from paper and pen to online property management software to cloud-based mobile solutions to digital services as amenities. Now we’re managing the books professionally, collecting rent effortlessly, giving owners incredible insights and profit, while making tenants feel like royalty. We’ve removed the friction in one of the oldest industries.
Enter automated solutions and there are no limits on customers or properties. Just consistent cash flow and improved profit margins. Manage thousands of doors instead of hundreds and add on services. It’s doable and this is the future.
New automated services help to keep renters as loyal tenants too. Tenants actually demand these new digital services amenities.
3. We’re Entering the Non-Ownership Era
Property assets are very expensive for a number of reasons including demand, scarcity, taxes and regulations. And as mortgage rates begin to climb and inflation raises construction costs, many Americans, Brits, Germans, Canadians and Aussies will be unable to purchase a single-family house.
Demand for asset rentals will then be strong in the years ahead as we move into a rental culture across the world.
More people will rent everything from furniture to appliances, to condos and automobiles, to Internet connections and streaming entertainment subscriptions, wash their clothes in rented clothes washers. And they’ll park their rented electric cars in rented parking spots in rented garages, where they’ll pay for electrical recharge.
Millennials are already avoiding buying condos, cars, and furniture. With their wages, they never will own. Renting is a way of life they’re getting comfortable with because entrepreneurs are offering everything rentable. It’s cheaper and resonates with renters needs.
Those who own cars, condos, and boats will only own because they can rent them out. They do it for the amazing profit.
4. Variety of Assets are Increasing
As the variety of rental asset types and real estate types grow, owners will expect property managers to manage them all efficiently using modern software. And they’re looking for expertise in maintenance operations and customer service. They’re also expecting management skills in marketing, finance, and customer relations.
New software tools allow exciting new value added business models and pricing strategies. We’re escaping escape old pricing and service delivery models that handcuffed managers. Airbnb, Uber, Uber eats, and WASH are just a few examples of the new rental world.
If people are avoiding the property management industry, it’s because they’re influenced by out of date definitions that do make profitability unlikely. Automation, new services, and mobile management gives property managers new angles to make money.
And these aren’t gimmicks. We’ve noted in previous blog posts about new advancing technology and how high tech services are increasingly important to renters. The value landlords and property managers are delivering is changing. It’s more about improving tenant experience, services, and value, rather than a place for an overworked, underpaid renter.
5. Automation, 5G, and iOT, and Expertise
The last step is all about automating services, extending digital services, better asset management/security with iOT sensors, and then selling business expertise to make much more income.
Adopting property management software is the first step. It automates tenant screening and leasing, marketing, rent payment, maintenance work, asset tracking, bookkeeping, and tenant communications. All the time consuming work simplified.
With iOT, all rented assets can be tracked and used to add services and value to tenants. From appliances to smart home controls and security features to energy usage, all hard asset management is simplified.
It’s an army of virtual, electronic eyeballs and trackers to give property managers and owners new ways to make money. The pay per use and micropayment universe has already arrived. And these will be in demand services renters can’t do without.
And 5G is a digital superhighway that will open up entertainment and communications service opportunities.
With all of this new technology and profit tools at hand, landlords will need expert managers to take care of it all.
That’s far beyond knocking on doors asking for cash from a renter!
Whatever you rent, it’s how you rent that creates your profit. Don’t forget to review, compare, and evaluate the features and benefits of ManageCasa and see why investors prefer this powerful yet affordable solution.
A Career in Property Management? Yes!
If you’re someone considering property management as a career, and you’re okay with digital tech, you’ll be happy with the salaries, job opportunities and demand for property management professionals.
From built to rent housing, parking spaces, to storage lockers and marina yacht slips, the opportunity to make money has never been better.
Why would a landlord, investor or property manager limit themselves to monthly apartment rental as their sole source of income?
ManageCasa: for the new era of Property Management
Increasingly, small property management firms will adopt cloud-based, digital software such as ManageCasa. Learn more about how ManageCasa property management software delivers impressive results.
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