Key trends in the property management industry and what they mean for your business 

Industry News

Key trends in the property management industry and what they mean for your business 

With the impacts of COVID-19 still firmly etched in our memories, as well as the constantly rising cash rate and cost of living, the future can seem uncertain and stressful to think about. However, it doesn’t have to be as the property management industry is constantly evolving and adapting to challenging times. Instead, it’s the perfect opportunity in conjunction with the beginning of a new financial year to see how we can all innovate to meet both the changing climate now and in the future. 

Therefore, we’ve culminated a list of the ways in which the industry is currently evolving, allowing you to stay on top of the emerging trends.

1. The impact of climate change awareness

It’s no secret that climate change is on the forefront of our minds, as we’re becoming more aware of the everlasting effects of our daily choices on the Earth. Manufacturing and building (including both commercial and residential development) account for 12.4% of global manmade greenhouse gas emissions, which makes up the second largest emissions group. 

With that being said, it’s evident we’re all taking climate matters into our own hands. With 82% of Emerging Trends in Real Estate’s survey respondents stating they strongly consider environmental elements and impacts when making investment and operational decisions. The respondents cited their reasoning for this as risk management (52%) and tenant/investor requirements (48%).

So how can I adapt to this?

When it comes to being more environmentally sustainable, there are a lot of ways you can make small tweaks that add up. Firstly, when it comes to your in-office practices, we recommend creating a recycling scheme, inspiring your team with office challenges and picking sustainable maintenance and suppliers. Secondly, you can work together with owners to make sustainable changes to their properties, such as changing to LED lighting or installing an outdoor clothesline to prevent high energy consumption. For more information on how to increase environmentally sustainable practices as a Property Manager check out our blog here.

2. Job vacancies in the property sector

We’re sure you’re aware of the high turnover rate in the property management industry, which has only been further perpetuated by the Great Resignation and COVID-19. However, did you know the exact figures? In a study conducted by the Australian Industry and Skills Committee, it was found that the number of employees in the real estate sector remained steady between 2014 to 2022. In 2014, there were 175,300 people employed in the sector and in 2022 there were only 4,900 more. 

When pulling back the layers, it was found the industries within the real estate sector that had the highest demand for staff were property management, domestic cleaning services and civil engineering. Furthermore, the ABS discovered that 20,452 people changed jobs in the real estate sector over the past 12 months. With the job mobility rate sitting at 7.2%, which is higher than last year’s figure which sat at 6.7%.

So how can I adapt to this?

While increasing job vacancy rates can seem daunting, they actually present an opportunity for growth by allowing you to be open to new people, ideas and innovations. We recommend taking the time to create a comprehensive list of qualities and skills you are looking for in your new team members to ensure you hire the right fit for the team. This may sound like a no-brainer, however, it’s important to keep these qualities top of mind when hiring new staff. Beyond this, ensuring you’re taking the time to up-skill the training of your current team and providing a positive work culture are easy ways to prevent a high turnover rate.

3. Technology changing the way we work

With technology changing more rapidly than ever before we can often feel at a loss on where to begin and what programs to use and implement in the workplace. Thankfully, there are some key trends in the industry that allow us to understand which innovations are here to stay. According to Forbes the top areas to keep an eye on in the technology space are property management automation software, virtual tours and eSigning.

So how can I adapt to this?

Learning new forms of technology is much like ripping off a bandaid, it’s painful at first but once you’ve done it you’re glad you did. We recommend familiarising yourself with PropertyMe to make sure that you’re getting the most out of our platform. In particular, we encourage you to take a look at our InspectMe mobile app and Automation Studio.

4. National vacancy rates drop as rental prices soar

In May 2022 the national vacancy rate dropped to 1.0%, being the lowest vacancy rate since 2017. Adelaide, Hobart and Darwin had the lowest vacancy rates of any capital city, sitting at 0.3%, 0.4% and 0.5% respectively. In conjunction with this, national rental prices are at an all time high. The national rental price increased by 16.9% from the previous year, with Brisbane and Sydney seeing the biggest increases.

So how can I adapt to this?

Thankfully for the industry, an increase in rental prices is not bad from a business perspective, however low vacancy rates can put pressure on Property Managers to source new leads and spark up new business. With the presence of technology and social media being felt by all, it’s imperative to maintain an active profile both on your company’s website and social media channels to create visibility and attract new owners. For more tips on how to generate leads, check out our blog here.

So there you have it, the key trends in the property management industry and how you can use them to innovate your practices. Let us know your thoughts by emailing [email protected].

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