HOA property management trends are constantly evolving due to influencing factors ranging from the housing market fluctuations to regulations to industry growth.
Since its origins in the 1950s, HOA property management has grown from primarily maintaining aesthetics and structural integrity in a shared community to its present operation of enforcing rules and regulations, collecting fees and managing HOA finances—yet more developments are on their way.
The property management industry generates $99,449 billion in revenue annually in the US alone; with a typical annual growth of 5% year over year since 2012. It’s a major industry and therefore subject to powerful trends.
Let’s explore what those trends are in 2024 and the importance of keeping an eye on what’s new.
Table of contents
- Why Property Managers Need to Keep on Top of Industry Trends
- Here to Stay or Gone in a Flash: Invest in Trends Not Fads
- Top 7 Trends Property Managers Are Focusing on in 2024
- Trends are Clues to Securing the Future of Your Business—Don’t Ignore Them
Why Property Managers Need to Keep on Top of Industry Trends
Property management companies need to stay current with industry trends in order for business to remain:
- Competitive
- Relevant
- Competent
For example, in the 1980’s as more industries were adopting personal computers to facilitate work, property management companies did the same.
I’m sure you can’t imagine using pen and paper now to keep track of the volume of monthly dues collected or communications about rules and violations considering the amount residents and HOAs your company is supporting—It would be near impossible in these days. It seems like an obvious best practice move in today’s world, but some property management companies took a while to get on board at that time, and their competition moved past them.
Additionally, clients expect their property management company to provide the best service possible, and trends give you an idea of how to do that so you can:
- Retain your hard-earned clients.
- Grow your business.
By keeping up with trends, you’ll demonstrate that your property management company is relevant and competent.
Now, that doesn’t mean you jump on every bandwagon that comes along. Instead, you have to recognize where to invest your time, energy and money in that will benefit you in the long run.
Here to Stay or Gone in a Flash: Invest in Trends Not Fads
Depending on what state you are in and the size of your property management company, you may be able to adopt new trends quickly, eventually or not at all. Some things happening in the industry may not last long.
Knowing the difference between a trend and a fad is important, especially if it’s going to cost your business money.
|
TREND |
FAD |
|
• Usually begins slowly • Takes time to build • Has staying power, lasting for years or decades |
• Rise quickly with popularity • Disappears almost as quickly |
Trend vs. Fad
For example, if we look at smart houses (residents can control appliances, thermostats, lights, and other devices remotely with their smart phone or tablet) we see that this type of housing is becoming increasingly popular, and adding new options regularly.
Property management companies must therefore manage these new smart homes and understand how they impact the company and its operations.
In response, now ten years later, property management companies are employing smart security solutions to oversee and secure common places in shared communities—a new trend for the industry.
So, as demonstrated with smart homes, it takes time to determine if a new development will turn into a trend or just fade away.
In 2024 we are seeing some definite trends that property management companies will want to pay attention to and should respond to either by doing more research and/or investing in.
Top 7 Trends Property Managers Are Focusing on in 2024
Leading property management companies looking to solidify business in 2024 and beyond will be considering and engaging in these top trends.
1. Strategize for growth
If your property management business isn’t growing, it could be in trouble. Make sure to review your current business plan and revise it as necessary to increase your bottom line. Consider:
- Recruiting new clients
- Adding new properties
- Exploring new regions
- Adding staff
It will require a growth mindset.
2. Go Green
Implementing green practices in all industries is a growing trend. This means your company is taking action to reduce its impact on the environment. What does that look like? Your property management company could help the community become more sustainable by finding ways for it to:
- Increase energy efficiency
- Conserve water
- Recycle and compost
- Use zero VOC paint (prevent emission of toxic gases)
- Use plants for landscaping that are natural to the region and easily adaptable
Green property management practices creates a healthier environment and attracts new like-minded clients who value a green-focused property management company for its community.
3. Welcome increased technology
Technology has permeated both professional and personal arenas. Use it to your advantage to accomplish more and maximize efficiency. Here’s how:
Property management software
Get your hands on the best software solution available because it will:
- Save you time by speeding up mundane and tedious tasks.
- Improve communication by coordinating tasks and keeping everyone in the loop.
- Automate and simplify a variety of tasks such as incident reporting and tracking.
- Make your business adaptable in a volatile economy.
Property management tools
There is an app for practically everything these days and there is a reason why—convenience. Using mobile tools for property managers increases their accessibility and provides a better use of time for everyone because mobile apps can be accessed anywhere and at any time, making your company more efficient with effective employees.
For example, say you are away from the office attending to something, instead of rushing back to the office to update visitor parking information, you can simply open the convenient app to facilitate visitor parking permits.
AI and Machine Learning
There is no looking pass AI (artificial intelligence) and machine learning (data algorithms) that can be used to:
- Predict maintenance needs, commodity lifespans,
- Resident behavior
- Optimize fee rates
The benefits are that AI can help you predict and prepare for certain property management issues before they arise.
4. Offer New Services to Residents
Property managers usually get feedback directly from residents who want to know where their increasing fees are going, when they are not seeing any new services. The chart below indicates the most commonly provided services by property management.
Kick off 2024 year by offering a new service that residents can appreciate; like a:
- Private outdoor space that can be reserved
- Resident’s Benefit Package (24/7 maintenance request portal, virtual concierge to book common areas, two-way communication software)
- Dog walking service
- A fitness leader for the common gym
The new service you offer is dependent on the nature of the community and its needs, but it will get noticed and appreciated.
5. Push Past the Competition
You may always keep an eye on your regular competition, but with the shift in the housing market and access to new technology, you may notice that realtors and real estate agents are opening the door into property management too.
So, look to improve your business, you have years of experience. Use your experience to your advantage by pivoting to streamline your operations. You’re not just starting out like your realtor competitors.
6. Control Rising Costs
What isn’t getting more expensive these days? Everything from labor, to overhead, to insurance and licensing, and legal fees are all going up with inflation. Therefore, you’ll want hold on to profits but still offer top service by maximizing your resources of time and money. As noted earlier property management technology is one of the best ways to help you do this.
7. Hang on to Quality Residents
Happy residents don’t move and continue to pay their fees. Retention is key.
For new residents screening is a good way to assess whether they have long-term financial ability to pay fees especially as they increase.
You’ll also notice the trend that extended family (parents, aunts, uncles, brothers and sisters) are increasingly getting involved to help the younger generation get into the housing market.
So, be prepared to have communication with more than just the residents who will be living in the home.
Trends are Clues to Securing the Future of Your Business—Don’t Ignore Them
It may be easier to rest on past success and continue to run your property management business in the same way, however time and progress tell us this strategy will not lead to future success.
If you are a property management company moving towards future success, you must engage 2024 industry trends to learn and benefit from what the trends are telling you.
If you pay attention, you’ll see that you can wisely invest in lasting trends—not fads, that will grow your company for the future as long as you:
- Review and develop your business strategy.
- Pay attention to the environment and how your operations can bring about a greener community.
- Swing open the gates to more technology for increased efficiency—time is money!
- Innovate your service offerings to remind clients and residents of your value.
- Aggressively keep your competition at bay.
- Pay full attention to managing your expenses.
- Keep your good residents and their extended family.
The property management industry is evolving, and your company will need to evolve too for future success.
The post Top 7 HOA Property Management Trends in 2024 to Future Proof Your Business appeared first on Condo Control.