We are in the midst of the 4th Industrial Revolution. Technology is changing the way we live, work and interact at an unprecedented scale. To learn more about property managers’ goals and struggles in the modern economy, AppFolio and John Burns Real Estate Consulting surveyed more than 500 property management professionals to bring you data-driven insights on the state of the industry.
Key Growth Inhibitors
The Need for Strategic Focus
Adopting New Processes
New Standards in Service
Emerging Market Trends
Staffing - a company is only as good as its people, and 45.3% of property managers struggle with hiring qualified employees. It's vital to build a strong team that can keep up with the pace of technology and have excellent customer relationship skills.
Doing Things the Old Way - The lack of automation is slowing the growth of 35.1% of property management businesses. Too much time is spent with pen, paper, and spreadsheets instead of letting modern technology take the load off employees.
Problems with Training - 30.4% of respondents identified training as a key growth inhibitor. Time spent training eats into time spent growing the business. Consider how many hours employees spend ramping up on important workflows, and evaluate how to leverage technology to guide processes and save time.
Attracting and Retaining Renters - 30.1% of property managers see problems with attracting and retaining renters. The Gen Z demographic will be the next wave of tenants, and property managers will have to adapt. Gen Z will expect certain things—whether it’s top-of-the-line amenities, increased leasing functionality, or improved communication. While there are many reasons for rental turnover, level of service plays a huge role in how long renters stay, and how often they recommend your properties.
The Desire For Timely Responses - While property managers know it’s important to respond quickly to leads, they continue to struggle to do so. Slow response times can create a negative customer experience from the prospective renter’s initial interaction with a business. Renters expect instant service and will opt to do business with companies that consistently provide it.
Training Falls Short - Lack of trained staff has a negative impact on the ability of property managers to qualify leads and prospects. Streamlined training and self-guided resources built into software can fill this gap.
Serious Inquiries Only - Pre-qualifying leads before reaching out to them is a huge time saver. Unfortunately, this is a challenge for property managers today. One solution is built-in guest cards on your property’s website that enable you to automate responses and collect resident data online, making inquiries easy to sort and manage.
Too Much Time Spent on Manual Processes - According to the survey, 18% of property managers spend too much time on manual processes, which gets in the way of more strategic thinking. Automating day-to-day tasks can free up time to focus on the future.
Maintenance Management Is a Time Sink - Managing maintenance was identified by 17% of respondents as their biggest challenge. Maintenance is commonplace in property management, but unexpected issues can take time out of the day and inefficient service can be detrimental to the renter experience. Utilizing mobile technology can greatly free up time for property managers and vendors, while allowing them to provide improved service to renters.
Finding the Right People for the Job Is Difficult - Happier employees equal happier customers. Unfortunately, the property management industry has a very high turnover rate, and 13% of respondents are experiencing challenges in hiring the right people for the job. Today’s tech-savvy job seekers appreciate easy-to-use, modern technology that helps them to be efficient.
Consumers have high expectations when it comes to service and the quality of interactions. This is particularly evident in the real estate industry, which historically reacts more slowly to market changes than other industries. Property management professionals are starting to recognize the importance of becoming customer experience managers.
In a mobile-first, on-demand economy, businesses need to boost their customer experience strategy to meet the expectations of today’s customer and gain a competitive advantage. A strong company culture will not only attract loyal employees, but owners and renters as well.Deliver excellent service to customers
Property management firms are acquiring one another, resulting in fewer and larger companies.Will have an impact on my business
Creating a company culture based on excellence in tenant/resident service.Will have an impact on my business
Using sophisticated tools to develop business intelligence and visualization.Will have an impact on my business
Large firms doing their own rehab and maintenance are entering the market.Will have an impact on my business
Practices such as 24/7 access to property viewing are increasingly common.Will have an impact on my business
Current inventories of for-rent product are undergoing steady reduction.Will have an impact on my business
Adding services beyond management grows revenue with fewer doors.Will have an impact on my business
Investors expect detailed performance and financial information to be available online.Will have an impact on my business
Your customers expect self-service, mobile service experiences--are you equipped to meet the demands of today's renters? With AppFolio Property Manager, discover the difference that intuitive technology will make for your business.
Leveraging the latest advancements in technology, ramp new employees in less time, automate business processes at scale, and boost team performance. Access real-time data insights and spend more time focused on the future in order to realize your goals as a modern business, while delivering extraordinary service experiences for your customers.