Property management is a growing industry, and there is a significant demand for property managers. The industry has experienced steady growth over the past decade, driven by factors such as an increase in rental properties and a desire for property owners to outsource the day-to-day management of their investments. In fact, the demand for property management services has been on the rise in recent years, a property management is a vital aspect of real estate ownership and investment. But is hiring a property manager still a trend in the industry?
Let’s overview the trends in today’s article.
Why is it beneficial to hire a property manager?
Estate management statistics say that 80% of property managers are involved in the coordination of maintenance/repairs as well as rent and fee collections. While some landlords don’t feel the need to hire a property manager, it’s obvious you can’t diy your way through managing your own property forever. A professional and skilled manager can help and guide you through the process of running your business.
Another reason why landlords hire property managers is to avoid legal issues. Property managers have a good understanding of local, state, and federal laws, which can aid landlords to avoid legal issues. As a bonus, property managers can handle legal issues such as evictions and lease terminations, ensuring that the landlord is protected.
Why are people hiring property managers?
According to a recent survey done by this Chicago property management company, the majority of property managers reported an increase in demand for their services over the past year.
One of the main reasons people are turning to property managers more and more is the convenience and peace of mind they can offer. Property management companies can handle all the day-to-day tasks associated with owning an estate, freeing up the landlord's time and allowing them to focus on other things while still having a profitable business, as property managers can help ensure that tenants are happy and your business flourishes. This can lead to lower vacancy rates and higher rental income.
Another reason why landlords hire property managers is to avoid legal issues. This is because property managers understand local, state, and federal laws, which can aid landlords to avoid legal problems. As a bonus, property managers can handle legal actions such as evictions and lease terminations, ensuring this way that the landlord remains protected.
Industry trends
According to a report the property management industry in the United States generated $88 billion in revenue in 2021 and employed over 400,000 people. The report also mentions that the industry is expected to continue growing in the upcoming years. This is due to factors such as rising demand for rental properties and an aging population that may require more assistance with managing their properties. Another factor can be the increasing complexity of property management laws and regulations.
It seems to be that the COVID-19 pandemic has highlighted the importance of property management services, as landlords faced challenges such as rent collection and maintenance during this time. This marked a difficult time for property owners because of reasons like the lack of professional expertise and skill.
Grand View Research says the global property management market size was valued at $14.47 billion in 2020 during the pandemic and is expected to grow at a compound annual growth rate (CAGR) of 7.6% from 2021 to 2028. This growth can be attributed to a number of factors, including the increasing number of rental properties, the growing complexity of property management tasks, laws and regulations, and the need for professional property management services. This encourages landlords to recognize the value of hiring a property manager to handle tasks and manage the property more efficiently.
Conclusion
Hiring a property manager can provide a range of benefits for landlords, from expertise and time-save to tenant retention and legal compliance. Working with a property manager can allow you to leverage their skills and knowledge, thus resulting in growing your business and making data-driven decisions about your property.
If you are a property owner with little time or experience in property management, hiring a property manager is a wise investment that can pay off in the long run, as property managers play a crucial role in helping landlords run their properties in an able and smart manner.
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