Last modified on January 24th, 2023
By Marc Frenkiel
To better understand what 2023 may have in store for the property management industry, we recently surveyed nearly 5,000 property managers to learn more about their sentiment and outlook for the coming year.
What we found was encouraging. Overwhelmingly, property management teams share a strong sense of optimism for the year ahead. This positive outlook spans from job growth to increased operational efficiency. Despite challenges on the horizon, 2023 brings high hopes across the property management industry.
Here’s a taste of what you’ll find in the inaugural AppFolio Property Manager Benchmark Report.
Underscoring the optimism mentioned above, just 1% of survey respondents are considering layoffs in 2023, while 52% are looking to hire additional employees. This positive outlook for job growth in the property management industry comes in stark contrast to recent headlines depicting layoffs across many other industries.
Despite the opinions of many experts that a recession could very well hit in 2023, survey participants cited unit growth as their greatest opportunity this year, likely due to the post-pandemic construction boom of multifamily properties.
We also asked survey participants to identify opportunities to streamline or automate operations:
These findings suggest that in 2023, property management companies will prioritize ways to offer more flexibility and a better experience to their residents, as well as operational efficiency. All three groups cited processing more rent payments online within two percentage points of each other. This trend was mirrored in the opportunity to improve the accounts payable process, and it comes as no surprise. The process of depositing or cutting checks, as well as recording transactions at scale, are two of the most time-consuming aspects of property management.
Survey respondents also said that greater customization capabilities would be the most welcome enhancement to their current financial reporting tools.
Like any industry, property management has risks to contend with. According to survey participants, the biggest risks this year overlap with broader economic risks and are not necessarily industry-specific.
Though not without challenges, these insights paint a positive picture of what 2023 may have in store for the property management industry. Though opportunities for business growth are a bright spot, an increased focus on both the employee and resident experience are also reasons for optimism. To uncover all of our additional findings and insights, download the 2023 AppFolio Property Manager Benchmark Report today.