The rental property market has experienced significant changes in the last year and shows no signs of slowing down.
While the complete impact of COVID-19 on the market is still unknown, five industry trends that are gaining traction now will undoubtedly continue in the future.
Virtual tours, online rent collection, altering property manager-resident interactions, new generational values, and location will all impact the rental property market in 2022. To comprehend the changes, you can look for the best Affordable housing webinars.
Virtual Tours
Previously, if a tenant wanted to tour a rental property, they had to visit it physically. A landlord, property manager, or someone on their behalf had to schedule an appointment to see the property and answer questions, and they sometimes had to do so multiple times for each unit. Tenants who were moving to a new city or who were unavailable during tour periods may have missed out totally on the property.
A limited number of landlords became aware of the problems early on and began delivering digital video tours. However, landlords and property managers, for the most part, decided to maintain the status quo, even if it was uncomfortable.
Since the breakout of COVID-19, simple inconveniences have turned into major health hazards, and in-person excursions have become exceedingly rare. Most real estate investors choose to give remote tours instead of removing their properties off the market.
96 percent of property managers used virtual tours or self-guided tours during the epidemic, according to a survey. And it was the pandemic that prompted this decision, since 74% said 2020 would be the first year they had done so. During a difficult year, these same property managers rated virtual tours as the single most beneficial tool, according to the survey.
Rent Collection via Digital Mode
During the pandemic, internet rent collecting, like virtual tours, became an important aspect of property managers' business. Despite the fact that adoption had been progressively increasing, it accelerated in 2020-2021. The ratio of digital payments nearly increased from 17 percent in Q4 2019 to 33 percent in Q4 2020, according to a report by the National Landlord Association (NLA).
More renters are becoming aware of the convenience and simplicity of making payments online. Landlords are beginning to see the benefits of online rent collecting in a fresh perspective as well. The unpaid rent for online payments was 20 times less than the average across all transaction methods, according to the same NLA survey. This is likely owing to automatic reminders that assist renters in making timely payments, as well as the simplicity with which landlords receive payments.
Evolving Property Manager-Resident Relationships
It wasn't uncommon for renters to have little contact with property management prior to the outbreak. Maintenance difficulties and payment questions were the most common topics of conversation between property managers and tenants.
Due to health protocol updates, amenity closure announcements, ongoing maintenance conversations, rental assistance program, and any mandatory policy change notifications, contact between property managers and residents increased after the pandemic.
Property managers and residents developed a stronger bond as a result of the increased communication. Many landlords devised novel strategies to assist tenants during difficult times (i.e., lease restructuring by waiving base rent for a few months and asking for it later). Tenants and landlords worked together to solve unprecedented problems.
Values of a New Generation
The market will be influenced by the values of younger generations as they begin to hunt for homes. For years, millennials have been making headlines because they prefer to rent rather than buy, a trend that continues to impact the housing market today.
Gen Z, the most recent generation to begin looking for a home, has a strong need for technological integration and modern amenities. They value technology such as high-speed Wi-Fi, high-tech locks, and smart thermostats, to name a few. They also prefer to rent rather than buy.
Landlords are beginning to adjust to the shifting demands of the market. In all facets of rental properties, technology is becoming more prevalent. In-unit value-adds like motion-detector lights, Bluetooth showerheads, and remote-access thermostats are being tested by many property managers and owners.
In a nutshell, you can look for the best Onsite Training Workshops to comprehend it better.
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