As the number of landlords keeps increasing, so are the number of renters. According to a report by Hud Users, there are a little over 11 million real estate managers in the United States managing not more than two units of houses each. But towards the end of 2020, the number of units managed by each landlord increased to three units. Today, renters occupy 41% of these properties, with an average rent of $97,000 annually. As this trend continues to grow, the need for reputable property management services continues to be more relevant.
Managing a property is not easy, but when it comes to managing more than one, it takes the hard work of groups of experts to pull it off. This is why some real estate investors prefer reputable companies to manage their properties rather than some real estate startup. The job is tough, but all the same, business is good.
5 Reasons Why Real Estate Businesses Thrive on Property Management Services
1. Asking Price for Rents are Increasing
Studies have shown that the number of renters has increased without a major fluctuation; not even the recession could affect it; as a matter of fact, the asking price for a rental property kept on rising at the peak of the recession. Even at that, for-sale prices fluctuate, but it depends on the activities on both the national and local housing markets. This situation is be traced to why property management service companies prefer rentals: they are less risky to sell compared with other properties – they can be taken as a type of passive income channel.
2. Property Management gets Easier with the Aid of Technology
As technological innovations improve by the day, it has penetrated the property management business; it has even opened more doors for tech entrepreneurs who are keen to explore the niche. Because of the highly demanding nature of this business, technological equipment is introduced to the business to ease the challenges, most especially when it comes to keeping in contact with clients 24 hours of the day to receive and attend to all their complaints.
3. Vacation Rentals Now Pay Off
Vacation rentals, unlike before, are fast becoming more and more popular. Thus, it pays more today than before. People now prefer to rent vacation centers to hotels; this can be attributed to the constant request by guests for convenience and flexibility. There has been a growing fear that vacation centers may override the hotel business in time to come. And as you know, hotels do not need property management companies to run their business, unlike vacation rental owners. So, as a property management entrepreneur, it is good to leverage if you know your onion.
4. Marketing Still an Easy Way to Connect People
One of the most complex parts of the real estate business is finding an investor and rising over competitors. But that has been reduced to the bare minimum, probably because of various marketing mediums in existence today. Marketing in the real estate niche has gone beyond billboards and sharing flyers. Today, they attract customers using some psychographics targeting specific demographics.
5. Real Estate Business is Booming
The world has been said to increase by one billion people in ten years, and there are only two sectors to benefit immensely from this: the real estate sector and agro. So, this is more than enough reason to put more hard work into leveraging the moment.
Finally, you have to understand that the real estate business needs an already established property management services company to survive the competition. So, even as a startup, thrive on working closely with the big dogs to stay afloat. Good luck. For more information on Property management services visit: localdwelling.com.