The property management business has continued to grow even through a recession. It seems there is nothing that can make rental prices drop. For more than a decade, property management businesses have done nothing but thrive.
Property management is a solid business choice. As long as people need housing, there will be a need for property management. The more people choose to live in rental homes and apartments instead of purchasing homes, the more the industry grows.
It is not looking like the property management business is slowing down anytime soon. Actually, it only seems to grow as more people realize there is money to be made. Here are a few of the reasons property management businesses are thriving.
1. Rental Demand
The housing market has not been doing great for the last seven or so years. Owning a home is becoming more and more unappealing to the average person. The housing market used to account for over half of all properties, but that number is steadily declining.
Currently, rental properties make up a third of housing and that number is only growing. The fall of the popularity of starter homes has left people renting for longer periods of time. That means there is a greater need for property management.
Recent numbers are suggesting a little under half of the millennials would rather rent longer and buy a house later in life when they can afford it. As long and those numbers keep growing, and they don’t seem to be slowing down, there will be a need for more and more property management businesses.
The demand for more apartments, townhomes, and houses for rent is a gold mine for the property management industry. The more expensive the housing market becomes, the more property management businesses seem to be earning. The demand for more rentals is a huge reason the property management business is booming.
2. Solid Market
As the housing market fluctuates and drops regularly, property rentals stay solid. Because the renters do not have to worry about the value of their rented property falling, or having to suddenly pay more money despite their lease, they feel more comfortable than someone who owns a home. Property management businesses can capitalize on that.
To the benefit of property management, rent has been steadily rising since the nineties. There have been no significant drops in rent prices in over a decade. That makes rental properties a much safer bet for investors.
The price of rent steadily increasing provides a much more stable foundation than buying and flipping homes would. Property management businesses continue to provide passive income for rental property investors while other investors struggle in the changing housing market.
There is no sign of the rental market slowing down or taking a dip. If anything, all signs point to growth. That makes property management the sort of business a shrewd business person can thrive in without much fear of loss.
3. Technology
One of the biggest things that has made the property management business soar is the use of technology. Technology has made it possible to make a lot of the things that property managers used to have to go out of their way to do an automated process. That has made it possible to save both time and money.
The advancement in technology has helped in so many areas, and the property management business is no exception. Technology has made it easier for property management to check the changing market and rent prices so they can stay competitive. It has also helped automate the billing process so tenants feel safer and property managers get their money faster.
Related: 7 Best Property Management Tools for 2019
Technology has made keeping track of what needs to be fixed much simpler. A big part of property management is making sure everything is running smoothly and checking on any reported issues. With the growth of technology, it has become much cheaper and easier for property managers to receive reports and fix the problem.
As the property management business becomes more streamlined and efficient, it will also become more profitable. The more property managers can check costs, keep rent competitive, and keep their properties running without having to pay a hundred people, the more they are in line to profit.
Check out this innovative property management technology.
4. Vacation Rentals
Everyone is aware of the incredible growth of renting out homes for people on vacation. It has become an incredibly profitable business for multiple people. Since it’s inception, Airbnb has become the second most popular way to live when traveling which says amazing things for the vacation rental business.
As vacation rentals quickly overtake hotels in the industry of hospitality, more and more people are realizing they can make a business out of it. Owning and managing several vacation properties, or just a general vacation rentals business is a brilliant way to make money.
Related: 10 Tips to Ensure Top-Notch Vacation Rental Management
There are people who live full-time in rented homes. There are people who make a living traveling from vacation home to vacation home. The industry is booming the same way all rental industry seems to be and now is the best time to start managing some of those properties.
The climb of the rental vacation home has been nothing but profitable for property management businesses. With no end in sight to the popularity of renting a home instead of staying in a hotel, property management is only becoming a more profitable business. The potential rental vacation homes have unlocked is amazing and not something to let pass you by. Learn how to become an Airbnb property manager.
The Bottom Line
The property management business is showing no signs of slowing down. There is nothing except money to be made if you know what you are doing and are willing to give property management everything you’ve got. The reasons property management is booming are numerous.
The demand for more places to rent is a big part of it. More and more people are choosing to rent longer and buy later. That is a very good mindset for property managers.
The steady rise of the rental market without the risks the housing market seems to have is also a comforting benefit. There is always a chance of losing money, but it is not as much of a risk in the property management business. The rental market is steady and that is not something to pass on.
Technology is giving property management the same beneficial, streamlined process it is providing to so many industries. Technology is even assisting in the huge boom of vacation rentals. With the process only getting more simple and the opportunities getting more numerous, there are countless reasons that the property management business is booming.
This article has been contributed by Halley Johnson.