With over 23 million landlords and over 113 million renters in the U.S. alone, the number keeps increasing every day. Not everyone has hundreds of thousands of dollars to invest in real estate and rent it out. However, there is an alternative in which you can take advantage of the massive difference between the supply and demand – property management. Landlords and real estate investors realize the importance of making tenants comfortable, investing in property management to make sure people are satisfied with where they live, to have returning customers and free word-of-mouth advertising straight from the horse’s mouth. Property management businesses are booming, and you must jump on the bandwagon, or regret it later.
Hold your horses as we list you five reasons why property management is thriving in today’s world.
1. A Win-Win Situation for Everyone
Many people can’t afford to buy properties and hence rent them. It is a win-win situation for everyone as the tenants enjoy a more direct connection with the people running the buildings and the investors profit from tenants who want to continue living where they live. As the market becomes increasingly competitive, the need of the hour more than ever is proper property management.
2. Property Management Businesses Have New Technology
In recent years, property management businesses have seen the introduction of many new technologies. Tenants can now enjoy more freedom as they pay their rent online, fill up a suggestion form etc. Property management firms also provide added security by installing high-tech locks. Companies can now keep track of individual tenant details and overdue fees easily as well as keep tabs on the asking-price fluctuations and new competition in the neighborhood.
3. Marketing Connects You to More People
No matter how well you run your property, if nobody knows about it, you will struggle to make a name for yourself or attract new customers. Besides traditional methods, property management companies can also identify demographics and decide who they want to fill the buildings up with. Social media marketing, digital advertising and other new strategies have opened doors to improved ways of brand development.
4. Hotels Aren’t Able to Meet Tourist Demands
Formal hotels losing business in vacation spots signal the downfall of the hotel industry. This has played a big role in the rise of property management businesses. Tourists prefer an entire house to a small hotel room which has helped the emerging business and property management companies thrive. A well-managed and renowned business ultimately beats the hotel industry with its goodwill and value to meet customers’ demands.
5. Increase in Rental-Asking Prices
You will be missing out on the early-bird benefits as more people opt for rentals rather than owning a house. The rise of demand for rental properties will prompt investors to fill the gap, which in turn will lead to increased demand for property management companies. Rental of properties provide passive income and is a safe method of investment as compared to buy-and-sell of properties. The buy-and-hold mechanism of property rentals means that you never let the property go out of your hands but earn revenue for renting it.
With the increased demand for rental properties, and numerous rental properties sprawling up in quick succession, the right decision is to invest in property management services. It helps in connecting with end-user on a more personal level. Taking a customer-centric approach, it provides them with security and all the necessities for their well-being. It also helps the business to track the records of every customer, thus eliminating fee dues. The booming industry of property rentals has seen property management businesses thrive and flourish.
OHI is a fifteen-year-old real estate services company working with 50+ commercial and residential real estate developers, funds and property management companies across USA. Our deep expertise in real estate accounting, financial analysis, lease administration and asset management has helped clients cut associated costs by 40-50%. We currently provide these services to a portfolio of 50000 units across clients.
We invite you to experience finance and accounting outsourcing through us.