Greater demand for property management services
It’s not just technology that will be in high demand next year, he noted. “For busy property owners who can’t keep up with the industry trends and tenant expectations, it makes sense to outsource property management. Rental owners can leverage the expertise of tenured property managers to reduce stress, especially amid economic uncertainty. Property managers ensure that best practices are adopted to maintain efficiency and profitability. Considering these, it’s not surprising that the demand for property managers is still higher now compared to pre-pandemic levels.”
Property management portfolio growth
“With high demand for rentals and property management further empowered by modern technology and efficient property management services, owners are bound to expand their portfolios,” Bitton added. “Since investors are more inclined to take risks in buying properties during an unstable economy, they are highly likely to purchase real estate properties and turn them into rentals. It’s also good to note that property management portfolio growth is telling of the return to pre-pandemic business levels.”
Efficiency continues to be a challenge
“For the most part, the future looks sweet for the rental and property management industry, but it will not be without challenges,” he said. “The job crisis and increasing cost-of-living will also affect property owners. Evictions could increase as some tenants deal with income loss. Some tenants may leave to find cheaper rentals. The rise of remote work can also encourage tenants to move to cheaper cities since they no longer need to live close to work. Furthermore, it may be a challenge to find qualified property management staff amid the job crisis. These challenges combined can affect efficiency and profitability.”
Rental rates might continue to rise
“The global increases in commodity prices, wages, interest rates, service charges, taxes, and insurance premiums may eventually push landlords who haven’t increased rental prices to do so next year,” Bitton said. “They may also increase prices to provide better services to tenants.”
More landlords will require renters’ insurance
“Tenants can skip getting renters’ insurance unless their landlord requires so – and in 2023, we’ll see more owners requiring it,” he noted. “Given today’s economic and financial uncertainties, renters’ insurance can help minimize liabilities that would otherwise cause a rift between landlord and tenant, such as damage or loss of property.”