Last modified on February 7th, 2023
By Megan Eales Monroe
The past three years have been incredibly unique for property management. From a global pandemic to “The Great Resignation” and record inflation, each year has presented new challenges and seen major industry shifts.
Thankfully, according to the 2023 AppFolio Property Manager Benchmark Report, which includes feedback from nearly 5,000 property management professionals in the U.S., the industry’s outlook for 2023 is incredibly optimistic.
In addition, Dror Poleg, Economic Historian, speaker, and author of the book, Rethinking Real Estate: A Roadmap to Technology’s Impact on the World’s Largest Asset Class, revealed in discussions on The Top Floor podcast that there are an incredible number of opportunities on the way, too.
Here, we’ll break down his top three trends, plus explore how you can start capitalizing on them this year.
2023 property management trend #1: The rise of remote work and hybrid work
One of the biggest shifts over the past few years has been the rise of remote and hybrid work. Of course, this trend has affected the property management industry, but the impact goes beyond just setting new, more flexible working standards for property management teams.
Because of the widespread adoption of remote and hybrid work, residents are spending more time in their homes than ever before. And now that they’re using their residences more than ever before, their needs and expectations have changed when it comes to the properties they live in and the teams that run them.
For example, residents may submit more maintenance requests, which increases the need for swift response times and higher levels of customer service. Additionally, the requirements for remote work increase the need for upgrading property amenities and utilities, such as having more reliable internet connections and more proactive communication around potential disruptions, such as property inspections or updates on construction projects.
2023 property management trend #2: The convergence of hospitality and multifamily
The second biggest trend Dror sees is a blurring of the lines between hospitality and multifamily industries. Ultimately, he predicts we could see more rental properties moving towards an Airbnb-style experience.
Airbnb has already started testing new property management waters by adding more long-term options for those looking for more than just a temporary place to stay. Because Dror predicts Airbnb will become a bigger player in the residential rental space, we could even see Airbnb and other property management-adjacent businesses adopting processes and standards that may then be adopted by the rest of the market.
This trend means greater competition for property management organizations, but it could also provide easier ways for residents to lease a home.
To get ahead of this trend, look at your current leasing process. Instead of counting on residents spending weeks exchanging paperwork and talking to multiple, different people before getting the keys to their home, explore ways you can provide a quicker and more streamlined experience for residents.
2023 property management trend #3: Negative economic impacts
It’s hard to ignore the headlines around inflation, a looming recession, and a difficult labor market. All of these economic trends inevitably affect property management and are predicted to continue for the foreseeable future.
As a result, many organizations may be looking to cut costs within their business. While cutting costs is tempting and seems like a quick fix, Dror says smaller organizations should instead look for ways to solve inefficient workflows and processes.
Overall, adopting a streamlining mindset can have a more positive impact on the business long term, both for business growth and for employee satisfaction. For example, some property management companies are leveraging automation to reduce tedious, time-consuming, repetitive tasks. This can help teams refocus that time on more high-value work and also reduce burnout and disengagement. And, in a tight job market, maximizing team member time is more important than ever.
To hear Dror talk in more detail about the trends shaping property management and additional predictions on what’s to come in 2023, catch the full podcast episode above or wherever you listen to podcasts.