In today’s rapidly evolving rental market, property management professionals are navigating challenges that require a new level of adaptability and focus on operational excellence and investor retention. From rising maintenance costs to shifting resident expectations, the stakes have never been higher. At a recent NARPM partner webinar, industry leaders dove into actionable strategies for tackling these challenges, emphasizing the critical role of maintenance in retention and profitability.
The Rental Market Shift: A Competitive Landscape
The numbers are clear: rental properties are sitting on the market longer than before. Nationally, the average days on market hover around 34, but Northern California sees a more competitive 26 days. As Karen Jordan, owner of HBR Rentals, shared, the surge in rental inventory is giving residents more options, making it essential for properties to stand out. “How we present our properties is huge,” Karen emphasized. “We want residents to walk in and say, ‘Yes, I can live here.’”
Maintenance as a Make-or-Break Factor
When it comes to resident satisfaction, maintenance performance plays a starring role. According to Property Meld data, 36% of residents who leave cite maintenance issues as their reason for moving, while 46% say great maintenance is why they stay. Speed of repair is particularly critical, as residents often view even minor delays—like a dishwasher repair—as major inconveniences.
John Kearns, Director of Sales at Property Meld, explained, “Residents don’t submit a maintenance request excitedly. You’re starting at zero stars. The goal is to get them to four or five, and speed is the key.”
Maintenance Costs on the Rise
Maintenance expenses are another area of concern, with costs consistently outpacing inflation. Property Meld has observed a tenfold increase in internal technician usage over the past two years as property managers look to cut costs by reducing reliance on third-party vendors. Karen noted that delays in maintenance approvals can further exacerbate expenses. “We’ve seen invoices jump 10% in just a few months because of delayed decisions.”
Investor Retention: The Maintenance Connection
For property managers, maintaining strong relationships with owners and investors hinges on transparent communication about maintenance operations. Investors are particularly sensitive to maintenance costs, with churn risk spiking when annual maintenance spending exceeds 13% of rental income.
Quarterly performance reviews can be a powerful tool to build trust and credibility with investors. Karen highlighted how her team uses Property Meld’s data to provide owners with insights into resident satisfaction, repair speeds, and market trends. “Over the last 90 days, our average speed of repair was eight days, and resident satisfaction was 4.5 out of 5,” she said. “Sharing these metrics shows owners the value we deliver.”
The Path Forward: Proactive Maintenance Management
As the rental market stabilizes, property managers must prioritize efficient maintenance processes to stay competitive. Proactive tracking of vendor performance, repair timelines, and resident feedback is no longer optional—it’s essential. By leveraging tools like Property Meld, property managers can enhance operational transparency, improve resident satisfaction, and increase investor retention.
In a market where every dollar counts, optimized maintenance operations are more than a cost center—they’re a competitive advantage. For property management professionals ready to take the next step, embracing data-driven solutions is the key to thriving in this new era.