It’s no surprise that every year the property management industry shifts and changes, based on an abundance of different factors, just like any other industry. There are new opportunities, threats, and challenges that present themselves within the 365 days of the year. Of course, as discussed in a previous post here, 2020 was hit a little harder than usual with the extremely challenging effects of the coronavirus pandemic – a challenge and a threat that we are still dealing with now. With that being said, let’s discuss our 2023 property management predictions, due to the constant shifts in the industry.
Increased Rental Demand
Although the demand for rent will increase, the housing supply itself of rentals will be low. This will cause a spike in prices, which will be discussed more below. Some reasons for the low supply include lack of construction works for new rental properties being built, high costs for resources, land permits being made, and supply shortages and delays for the needed materials.
A Shift to More Automation and Digital
While the property management industry has held off on using major digital solutions, 2022 will be the year that changes. Along with the effects of the pandemic, many property management companies will transition their business practices to digital forms. New regulations will be created, there will be more properties to manage, and possibly less qualified staff to take on this work. Moving to a partially or fully digital program to run the business may help to ease the workload.
New technology can also help with making some business processes automated. This may include automating payments, managing tenants, and doing periodic inspections. All these new automated processes will also help to take the workload off the property managers, and the landlords themselves.
Home and Rent Prices Increasing
As mentioned a little earlier, housing prices will increase. With referencing the standard supply and demand curve, if the demand is high and supply is low, the price will surely increase. Renters, especially, may venture out to other locations to find a better, less-costly apartment or house.
Read more of our blog posts here.
SINCE 1980 YOUNG & ASSOCIATES, WOOD-RIDGE, NJ HAS BEEN THE TOP PROPERTY MANAGEMENT & REAL ESTATE COMPANY FOR RESIDENTIAL AND COMMERCIAL PROPERTIES THROUGHOUT THE NORTHERN AND CENTRAL NEW JERSEY AREA.
Located in Wood-Ridge, Bergen County, NJ, Young and Associates has over 30 years’ experience successfully managing residential and commercial properties in Northern and Central New Jersey.
Maintaining the highest standards of reliability and accountability, Young and Associates gives property owners peace of mind that comes from knowing their property is in trusting hands. Servicing properties primarily in Bergen, Passaic and Essex Counties, Young and Associates manages residential HOA communities, condos, co-ops and apartment complexes, golf courses and commercial properties.
Young and Associates now offers realty services through Young Realtors. Our licensed real estate brokers and associates can help you buy or sell your home. For more information about our services at Young & Associates, click here.
Young & Associates can be reached at (201) 939-8200.