In 2023, nearly 2,000 participants were surveyed to identify industry trends and determine what challenges exist in the property management industry.
They identified four main issues affecting property management companies in 2024:
- Resident retention
- Investor retention
- Staffing issues
- Growth and profitability
Property Meld was developed to solve the biggest maintenance headaches, and with our new Insights and Insights Pro dashboard, we have further equipped our customers to overcome these obstacles.
Resident Retention
According to the report, 41% of renters express a commitment to remain in their current residence, while 34% are contemplating a move. The remaining percentage opts to relocate upon the expiration of their lease. The current rental market climate is in favor of the resident, so property managers must become more renter focused to stay competitive.
Residents decide to vacate their rental properties primarily for three reasons:
- Dissatisfaction with the quality of service provided by their property manager.
- Poor property condition and neglect of maintenance issues.
- Lack of desired services and amenities.
Looking at your average resident satisfaction score is crucial to maintaining happy residents. Take it a step further and look at resident scores on an individual technician and vendor level. This allows you to determine which members of your staff are doing a good job prioritizing resident satisfaction, and who may need more training.
Pro Tip: Leading property managers are achieving an average resident satisfaction score of 4.2 – 4.6 (out of 5 stars)
Investor Retention
Third-party property management companies face intense competition in acquiring new property owners.
Per the 2024 Industry Report, 52% of owners enlist property managers for maintenance assistance. Offering an exceptional maintenance experience enhances retention and attracts new investors.
Prove your value to investors by tracking vital metrics, including average invoice cost and maintenance spend per unit. Demonstrating your ability to efficiently manage properties while minimizing costs is key to proving your indispensability to investors’ success.
Staffing Issues
While the labor shortage has seen a slight improvement, it remains a significant concern for property management companies this year.
Without maintenance oversight it can be extremely difficult to accurately staff your team to handle your maintenance output. Track your backlogged work orders, completion volume, vendor scheduling speed, and technician utilization rate to determine if your internal staff and vendors are equipped to handle the amount of maintenance volume you’re receiving.
Pro Tip: An ideal speed of repair is between 3.4 – 6.8 days.
Growth and Profitability
According to the 2024 Industry Report, 90% of property management companies plan to expand portfolios in the next two years.
Tracking key metrics like resident satisfaction, speed of repair, and your annual maintenance spend per unit proves to your investors that your services are having a positive impact on their profitability.
Don’t have access to these crucial metrics? Speak to your customer success manager to see how you can get the most out of Property Meld.