Last year, the world faced the greatest health pandemic in about a century. The COVID-19 virus quickly spread to every corner, posing many challenges in the economy and the health sector. Businesses were greatly affected as there was minimal cash flow. One such industry was real estate. Many people were unable to pay for their rented homes and also service their mortgages. The sale of homes was also going through some recess during this period. Let’s dive into the critical 2021 property management trends:
All hope is not lost, though. The world is learning how to live and cope with Covid19. Some countries like Canada, United States, Australia and the UK have applied economic stimulus and economies are seen to start the recovery journey. Some bankers have suggested that they will contain inflation at 2%.
Increased rental market demand
The demand for rental housing is also projected to grow as buying homes are currently too high for many people. During the pandemic, we have all learnt to do things differently, to achieve similar or better results. It is not different for property management. More people find it easier renting a house they can afford than servicing a mortgage or buying one.
Technology and automation
Property managers are now taking up property management software to help in activities such as automation of rent payment, meeting regulatory eviction requirements, reducing tenant service enquiries, and minimizing bookkeeping and other accounting aspects, among many other things. The use of the software is efficient, meaning there is less need for staffing, thereby cutting costs for the landlord.
With the pandemic in mind, landlords have to up their game regarding rent negotiation. With renters threatening to move, landlords need to improve their amenities and understand the playing field. The software will allow room for rent negotiation between the tenants and landlords. Therefore the landlords will be able to negotiate for better prices.
Most people renting out houses now are millennials, who are more technology-oriented and prefer doing most of their dealings online. Landlords who embrace technology stand a higher chance of doing business with this type of client. Such clients are looking for efficiency and competence achieved with the right technology.