The property management sector is about to witness a renovation due to the changes in mishandling of properties. New technologies, tenant demands, and environmental causes have changed the game in property management. Hence it is worth the time and effort for property owners, landlords and property management companies to understand these trends if they want to be relevant and add value. Here are some of the most important trends shaping property management over the next five years.

1. Smart Home Devices Will Become More Common

Smart technology is no longer the exclusive reserve of extreme luxury or overly technological structures. Screens and smart technology that manipulates lights, temperature, security, and even water leaks are bound to be commonplace within the next few years for most residential and commercial buildings. Moreover, the technological inbuilt systems used in self-managed properties reduce maintenance, increase tenant satisfaction, and save on power.

For example, the smart technology comes with features that allow the managers to manage the property from a distance. They can adjust certain settings, observe the usage of certain amenities or appliances and even fix a problem before it becomes too serious. This approach of managing properties is enabled by the emerging management technology where all devices are connected through the Internet of Things (IoT). With this technology in place, the managing units can also deal with malfunctions that require attention in much shorter time spans as well as managing utility expenses in a more efficient way. This observation is however limited to property managers as tenants too consider such aspects because most of them are modern and eco-friendly hence love energy preservation and sustainable living.

2. The Evolution of AI and Automation in Managing Processes

With the future of Property management, it is clear that Artificial intelligence and automation will be a game-changer in the management of properties with special emphasis to back-office functions. Then including tenant screening, lease renewal, and rent collection, turnover communications can all be managed by systems that employ various AI techniques to lessen the manual work done, thereby increasing the operational effectiveness. So that the property managers can perform normal activities without losing the touch of their personal services. It will in a way help out to save time and reduce the errors also.

So, for instance, tenants’ inquiries can be efficiently managed through the use of AI enabled chatbots which will answer queries even when the tenants are not available and as such enhance the response time and the satisfaction of the tenants. By the same way systems using AI to predict maintenance will review the repair history of a particular system in the house such as an HVAC and tell you when that specific system will require repairs next. Thus, as AI tools have been integrated into property management practice, performance of specific assets has been enhanced while strategic decisions have increased.

3. More attention on Tenant Experience and Satisfaction

Today’s tenants expect a seamless, tech-enabled experience, and this trend will only intensify in the coming years. With the growing competition, however, property managers have made a shift in focus and are now concerned with tenant satisfaction, thus providing a greater scope of property services. For example, rental payment, maintenance request submission and even communication with the management can all be done via mobile application by the tenants.

In order to promote a culture among the tenants of a property, some property managers are also putting their hard-earned money in features such as coworking spaces, gyms, and other public spaces. Other managers are working with area businesses to offer special deals to their tenants or organize small events dazzling the residents and promoting the tight-knit association. Looking to the future, the creation of a delightful experience for all tenants will be of utmost importance in among other aspects mitigating vacancy and keeping residents for longer periods.

4. Environmental Sustainability and Green Property Management Approaches

Increasingly, there has been an increase in the global emphasis on the environmental focus with property management trends embracing sustainability. The real estate management organisations are going as far as practising green measures, for instance, with the use of energy star rated appliances, introduction of solar energy systems and waste management strategies. Those not only help in environmental sustainability of the concern but also reduce operating costs due to the low energy consumption.

In real estate, green certifications and energy efficiencies are on high demand among tenants and even landlords due to the real estate spaces. Properties that have these features are usually rented at a premium and the occupants of such properties tend to be those who appreciate healthier and greener living. In the next five years, the incorporation of eco-friendly initiatives will evolve to be a practical business strategy for property managers to reach out to environmentally conscious tenants.

5. Making Use of Data and Predictive Analytical Tools in Making Decisions

Data analytics is enhancing the way property managers conduct their businesses by shifting their decision-making process from guesswork to evidence-based approaches. Rental price determination, occupancy rate estimates, maintenance schedules and to many others, data analysis tools are enabling property managers streamline almost all activities of their business. Utilizing predictive analytics, rental apartment managers can for instance be able to predict when their current tenants are likely to vacate the premises, hence helping them mitigate losses in rental income by properly scheduling new tenants.

Making decisions based on actual data also cut across marketing and acquiring tenants. Rental property managers can use demographic patterns to draw the preferred bands of tenants, or even use the local apartment’s vacancy trends to price the housing units. With the development of analytics tools, the market nexus strategy will become more aggressive as property managers will command even more robust analytical insights that drive higher profitability of their assets.

6. Increased Adoption of Virtual Reality and Augmented Reality Technologies for Property Viewing

Recently, and especially due to the escalation of the global pandemic, there have been an upward shift in the usage of the virtual reality and augmented reality technologies – especially within the real estate sector, more so in property viewings and open house events. Virtual tours are offered to potential tenants to meet their need of seeing the property without going to it, which is very helpful to long-distance leasing participants.

As technology continues to grow, especially in the field of virtual and augmented reality, the options available for managers to market properties such as the availability of a 3D floor plan, inner and outer house tours and possibilities to enhance the interior using certain applications will definitely increase. This technology saves time and widens the scope in which marketing efforts are placed especially to those tenants who are more concerned about technologies in which they have to use a lot of effort.

Conclusion

It seems that smart services will dominate where we are going when it comes to property management. Big changes in technology will ease operation, improve tenant satisfaction and encourage environmental friendly measures. The reality is however that for these changes reinventing property management is no longer an option. Trends like IoT, AI & Robotics, improving tenant experience, eco-friendly practices, intelligent management systems and VR showing of properties among others are present and for the sake of business, these changes must be incorporated by property management personnel. Changes will be critical for the landlords as well as the companies involved in real estate management, if they wish to succeed in this highly volatile and complex business environment.