The property management industry is one of the most important and fastest-growing sectors of the real estate industry. It is responsible for overseeing and managing all aspects of property ownership, from maintaining the property to finding tenants and handling rent payments. In order to succeed in this competitive field, it is important to understand the key statistics and trends that are shaping this industry.
Property Management Industry Statistics For 2022
First, let’s take a look at how the industry is doing in 2022.
– The property management industry in the US is a $37 billion per year industry.
– The number of property management firms in the United States has grown by 20% in the past five years.
– The property management industry employs over 1 million people.
– Residential property management accounts for 73% of all managed properties.
– Commercial property management accounts for 27% of all managed properties.
– The average property management fee is 10% of the monthly rent.
Property Management Industry Employment Statistics And Trends
Now let’s take a look at some employment statistics and trends in the property management industry.
– The property management industry is expected to add another 100,000 jobs by 2026.
– The majority of property management jobs are in the customer service and administrative fields.
– Property managers typically have a college degree, although some firms will hire candidates with high school degrees and relevant experience.
– The median salary for a property manager is $73,000 per year. This is expected to grow to $85,000 by 2026.
Residential vs. Commercial Property Management Statistics And Trends
Now let’s take a look at some statistics and trends relating to residential and commercial property management.
– The average vacancy rate for residential properties is 5%.
– The average vacancy rate for commercial properties is 10%.
– The average rent for a residential property is $1,500 per month. This is expected to increase by 3% in the next year.
– The average rent for a commercial property is $2,500 per month. This is expected to increase by 5% in the next year.
– The average property management fee for a residential property is 10% of the monthly rent.
– The average property management fee for a commercial property is 8% of the monthly rent.
Lease Renewal and Resident Retention Statistics
Next, let’s take a look at some statistics and trends relating to lease renewals and resident retention.
– The average length of a residential lease is 12 months.
– The average length of a commercial lease is 3 to 5 years.
– The average renewal rate for residential leases is 50%.
– The average renewal rate for commercial leases is 70%.
– The average turnover rate for residential properties is 20%.
– The average turnover rate for commercial properties is 30%.
Tenant Priority Statistics And Trends
Take a look at these statistics that help keep your tenants long-term.
– The top priority for tenants when choosing a property is the location (54%).
– The second priority for tenants when choosing a property is the price (32%).
– The third priority for tenants when choosing a property is the quality of the unit (6%).
– The fourth priority for tenants when choosing a property is the quality of the property management company (5%).
– The fifth priority for tenants when choosing a property is the amenities offered (3%).
-Sustainability is becoming more important to tenants, with 24% of respondents saying that they would pay more for a sustainable property.
-Tenants are also increasingly interested in technology, with 22% of respondents saying that they would pay more for a property with features like smart thermostats and keyless entry.
-Security is also a top concern for tenants, with 21% of respondents saying that they would pay more for a property with features like security cameras and on-site security guards.
Future Trends And Predictions For The Property Management Industry
Now let’s take a look at some future trends and predictions for the property management industry.
– The rise of co-living: Co-living is a trend that is on the rise, especially among millennials. In co-living arrangements, tenants share common spaces like kitchens and living rooms and often have private bedrooms. This is a great option for tenants who want the social benefits of living with roommates but don’t want to deal with the hassle of finding their own place.
– The rise of technology: Technology is changing the property management industry, from online rent payments to smart thermostats. Tenants are increasingly expecting properties to offer features like this, and property management companies that can keep up with the latest trends will be able to attract and retain the best tenants.
– The rise of sustainable living: Sustainable living is another trend that is on the rise, especially among millennials. Tenants are interested in sustainable features like solar panels and green roofs and are willing to pay more for properties that offer these amenities.
– The rise of the gig economy: The gig economy is a trend that is here to stay, and it is having an impact on the property management industry. More and more tenants are freelance workers or contractors, and they are looking for flexible lease terms that fit their lifestyle. Property management companies that can offer flexible lease terms will be able to attract and retain these tenants.
The Bottom Line
The property management industry is changing, and it is important for entrepreneurs to stay up-to-date on the latest trends. By understanding the statistics and trends in the industry, you will be able to make informed decisions about your business.