The property management industry has been uncertain over the past two years. Apart from pandemic-related issues, landlords and management firms must contend with rent payment delays, higher costs, fewer trained staff, debt, and more. Statistics by Census Bureau show that more than 8 million Americans are falling behind on rent.
In 2023 and beyond, property management companies need to prepare for inflation, increased competition, labor issues like wages, increasing industry regulations, and rent affordability. While some property managers continue to use outdated rental management tools, others are investing in new technology and SaaS software solutions to help with payment processing.
Here's the current property market scenario and some helpful tips that property management companies can use to grow in 2023.
The Current Property Management Market Scenario
According to Buildium's 2023 Property Management Industry Report, profitability, efficiency and growth are the top priorities for most property management companies. Three industry trends will influence businesses in 2023:
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Small property management companies plan to expand their portfolios by between 26% and 50%.
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There's increased demand for property management services. The number of rental owners with property managers spiked from 55% in 2019 to 63% in 2022.
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Technology is helping companies stay competitive and profitable.
To keep up with the changing consumer habits, landlords and management firms are investing in rent collection software. Data by Strategic Market Research shows that the property management software market was worth $1.56 billion in 2020 and is likely to reach $2.82 billion in 2030. These tools come in handy when firms collect rent, market properties, or screen tenants.
Although it's hard to predict what will happen in the housing market, experts suggest that home prices in most markets will increase in 2023. In addition, if inflation persists, mortgage rates could also go up, affecting the housing market. Because of this, rental owners will look to hire more property managers.
How Can Your Property Management Company Grow in 2023?
Here are some techniques your property management company can use to grow.
Invest in Marketing
Competition in the property management industry is on the rise. To maintain your market share and clients in 2023, you must market your services better. One way to do this is by promoting and advertising your properties via social media, PPC campaigns, or website content.
Promote your unique services as part of the marketing strategy. For instance, if you use property management software that allows renters to pay rent online or do instant ACH transfers, market these services to attract tenants looking for convenient and fast payment systems.
Find and Lock in on Best Deals Early
For your property management company to be profitable, focus on excellent portfolios. Ensure you find landlords and property owners looking for property management services early.
Use sites that provide such industry information to get new clients and sign property management contracts. That will bring in new business and boost your overall growth throughout the year.
Invest in Rental Management Software
Different types of property management software can help collect rent online. They automate real-time payments and make maintaining records easy for property managers. Managers can use SaaS software technology for tenant screening, time management, accounting, and maintenance.
Embrace technology. That will help you take on more properties, create better relationships with clients and tenants, increase efficiency, and reduce operational costs.
Collect Rent Online
A few years back, rent collection was mainly done via cash, money orders, and checks. Today, customers prefer frictionless and contactless payment processes. In 2023, property managers should focus more on online rent collection.
Use online property management software, direct deposit ACH transfer, or eChecks over the ACH network. Collecting rent online saves time, provides multiple modes of payment, provides instant notifications, and reduces the hassle of rent collection.
Adopt Digital Payment Methods for Property Tax Payments
Adopting digital payments like IVR payments, SMS payments, email invoicing, hosted payment portals, and ACH networks helps with electronic record maintenance, especially for taxation.
Governments will charge more property taxes because of rising costs and the changing economy.
You need information about your rental income to ensure you don't miss any tax payments. Digital methods are convenient because they have all your payment information in one place, even if you manage multiple properties.
If you want to integrate digital payments, you can partner with an HOA software vendor to develop tools for your company. Such partnerships are essential because they help with faster adaptability, minimize the chances of data theft and provide a better user experience.
How Can iCG Help?
With our payment processor here at iCG, property management becomes flawless. The market is shifting thanks to digital technologies; therefore, working with a partner who helps you tap into these new technologies is essential. iCG allows property managers to collect rent from tenants via multiple modes of payment.
iCG empowers property managers and tenants by reducing rent processing times through different technologies, including ACH, IVR payments, SMS pay links, and customized hosted payment portals. Because of this, property managers can focus their efforts on other business operations to drive company growth.
Automation also makes rent payments and transfers cheaper for property managers and renters. As a Nacha Preferred Partner, iCG is PCI compliant; therefore, customer payment information is protected from security breaches.
If you want to automate your rent collection process in 2023, partner with us and take advantage of our digital payment systems. Contact our relationship managers to get started.
