The rental market is undergoing a significant transformation, driven by advances in technology and shifting consumer preferences. As property managers look to stay ahead of the curve, it is crucial to understand the key property management trends that will shape the market in 2023 and beyond. In this report, we will examine the most prominent trends. This means we will focus on proptech, artificial intelligence and maintenance and repairs. Furthermore, we will provide insights on how property managers can leverage these trends to improve their performance.
The Year of Proptech Breakthroughs
Proptech, or property technology, is already revolutionizing the way properties are managed and is poised to continue its trajectory of growth in 2023. From smart home systems and virtual tours to online platforms and mobile apps, proptech is enabling property managers to stay connected with tenants, manage maintenance and repairs, and track key performance indicators more efficiently.
In the last few years, the adoption of proptech solutions has been driven by a confluence of property management trends. A significant one is the changed behaviors after the COVID-19 pandemic. Another key factor is the increasing availability of data and advances in analytics. A recent Harvard University report indicates that this technology trend is strengthening in 2023. Venture capital firms invested $19 billion in proptech companies in 2022, up from $2 billion in 2016. This is a testament to the growing recognition of the potential of proptech and it’s ability to drive efficiency, cost savings, and improved performance in the property management industry.
Furthermore, as consumer preferences shift towards technology-enabled services, proptech solutions are becoming essential tools for property managers to stay competitive in the market. From smarter repairs to building automation and energy management systems, proptech is enabling property managers to reduce costs, energy consumption, and improve sustainability. With an additional $19 billion in startup funding, we’re expecting 2023 to be a year filled with both new prop tech solutions coming to market and recent breakthroughs getting mass-adopted.
2023 is the Year when AI is Becoming a Major Property Management Trend
The use of data-driven decision making is becoming increasingly vital for property managers as they seek to optimize performance. By leveraging conventional metrics such as occupancy rates, rental prices, and maintenance costs, property managers can gain a deeper understanding of their properties’ financial health and identify basic areas for improvement. However, a study by McKinsey & Company highlights that nearly 60% of the data that predicts a property’s performance comes from nontraditional variables, such as tenant demographics, the proximity of highly rated restaurants and other local market conditions.
The emergence of Artificial Intelligence (AI) analytics tools is making it possible for property managers to access, analyze and interpret larger amounts of data more effectively. These tools use advanced algorithms and machine learning to identify parameters, patterns and insights that would be difficult or impossible for humans to detect. As more AI analytics tools continue to enter the market, we’re predicting that 2023 is poised to be a transformative year for the use of AI in the property management industry. As the trend continues, property managers will have access to a wider range of data sources, enabling them to make data-driven decisions with greater precision and accuracy, optimizing performance, and driving revenue growth while reducing costs.
The Maintenance and Repairs Revolution
Maintenance and repairs are an essential part of any property management strategy. However, it is one of the areas that over the years have seen the least amount of innovation. However, with current inflation rates, property managers must find ways to cut costs. Innovation is an excellent way to do so.
By using proptech solutions, property managers can streamline the maintenance and repair process, from scheduling and tracking work orders to monitoring the status of ongoing projects. This enables property managers to be more efficient, responsive, and proactive in addressing maintenance issues, leading to improved tenant satisfaction and retention.
Furthermore, proptech can significantly reduce maintenance and repair costs. This is because proptech solutions allow property managers to optimize their operations and automate tasks, such as scheduling and tracking maintenance requests, resulting in improved efficiency and cost savings. Given the current inflation pressure, we view this as particularly beneficial in 2023. Additionally, proptech solutions minimize downtime, which means that properties can be rented out or occupied more frequently, resulting in maximized revenue.
To that end, with property managers trying to optimize their operations and maximize their competitiveness, our research indicates that maintenance and repair technology is one of the trends property managers need to keep an eye on in 2023.
Conclusion
The rental market is rapidly changing, and property managers need to stay ahead of the curve to remain competitive. By using data-driven decision making, offering virtual tours and showings, and leveraging proptech, property managers can improve their performance and increase revenue. Above all, by streamlining maintenance and repairs, property managers can reduce costs and increase the efficiency of their operations. As the rental market evolves, property managers who understand and adapt to these trends will be best positioned to succeed in 2023 and beyond.