{"id":3916,"date":"2023-02-01T20:39:58","date_gmt":"2023-02-01T20:39:58","guid":{"rendered":"https:\/\/www.realtrends.com\/blog\/2023\/02\/01\/opinion-its-a-growth-year-for-property-managers\/"},"modified":"2025-03-13T02:48:53","modified_gmt":"2025-03-13T02:48:53","slug":"opinion-its-a-growth-year-for-property-managers","status":"publish","type":"post","link":"https:\/\/www.realtrends.com\/blog\/2023\/02\/01\/opinion-its-a-growth-year-for-property-managers\/","title":{"rendered":"Opinion: It’s a growth year for property managers"},"content":{"rendered":"\n

While the focus in the real estate industry is usually on sales, I believe this year will change that conversation. In recent years, property managers and investors faced COVID-19 and numerous other challenges. <\/p>\n\n\n\n

Fortunately, the pandemic<\/a> did not completely tank the rental market, but it certainly raised some difficult questions, the most significant being, \u201cHow do you maintain properties with no income?\u201d <\/p>\n\n\n\n

This was uncharted territory for property managers<\/a>, who had to learn how to help struggling tenants access new government aid programs, assist investors with eviction moratoriums, and all of the ever-changing restrictions. It was a delicate balancing act that required skill and the conversation was focused on the challenges for investors.<\/p>\n\n\n\n

As the eviction moratoriums were lifted and aid ran out, the rental market over corrected. <\/h2>\n\n\n\n

Good tenants began suffering from huge rent increases as landlords attempted to replace lost revenue and improve negative cash flow. This was a relief to those reluctant landlords in the market since the 2005 market free fall, unfortunately, it also turned the conversation to \u201cgreedy landlords\u201d<\/p>\n\n\n\n

Eventually, the rental market began to stabilize and the housing market lit up. Suddenly, all those reluctant landlords had an escape route out of the rental world and portfolios began to shrink, which meant new rental listings were hard to find. This was a very sobering time for property managers.<\/p>\n\n\n\n

We’re heading into a property management growth year<\/h2>\n\n\n\n

Today, we are seeing a modest decline in housing prices, and I believe we are headed into a great year for property management growth. Lower prices, higher interest rates, and houses sitting on the market a bit longer have sellers considering potential rental income as a positive alternative given the \u201cnew normal\u201d for most rental rates. <\/p>\n\n\n\n

My recent conversations with active property managers have been very positive. Most have expressed relief that those landlords previously on the fence between selling and re-renting are choosing the latter. They are also receiving more leads and agent referrals \u2014 our best sign yet of a strong rental rebound.  <\/p>\n\n\n\n

The vacation rental conversation is shifting<\/h2>\n\n\n\n

It now looks as though the Airbnb<\/strong> conversation is also shifting. Vacation rentals<\/a> have historically been strong, yet COVID brought it to a different level. Buyers saw opportunities in providing a safe place to vacation without crowds. However, as the spotlight got brighter on what vacation rentals meant to quiet neighborhoods, regulations and community rules began to push against this type of hotel-style activity. <\/p>\n\n\n\n

The trend seems to be heading to a safer, 30-day seasonal-style rental or an annual rental. In addition, it is quite expensive to design a well-equipped vacation rental. Many buyers find that positive cash flow is not possible for them with high start-up costs and the expected vacancies.<\/p>\n\n\n\n

The challenges within<\/h2>\n\n\n\n

The current conversation among long-time property managers is about the challenges coming from within. When sales slow, agents who have not properly prepared for market shifts often turn to property management as a source of additional income. True professionals know property management is not for the inexperienced and the liability far outweighs potential income.  <\/p>\n\n\n\n

This is not a harmless side hustle.                                                                                         <\/p>\n\n\n\n

On the horizon for the industry is the tenant protections that will be burdensome on investors.  We don\u2019t know what rental registries will entail, if protected income legislation will pass or if legal-council for tenants under eviction will become reality.  <\/p>\n\n\n\n

These and other topics will add to the ongoing conversation of the future of the rental industry. It is clear that skill and education will be the key to keeping the conversation investor friendly!<\/p>\n\n\n\n

Kathy Gaspari is Director of Property Management with Berkshire Hathaway HomeServices Florida Properties Group<\/strong>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

All signs show that property management trends are on the upswing with many owners looking at rental income as an alternative to selling.<\/p>\n","protected":false},"author":15802,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[3065],"class_list":["post-3916","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nOpinion: It's a growth year for property managers - RealTrends - Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.realtrends.com\/blog\/2023\/02\/01\/opinion-its-a-growth-year-for-property-managers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Opinion: It's a growth year for property managers\" \/>\n<meta property=\"og:description\" content=\"All signs show that property management trends are on the upswing with many owners looking at rental income as an alternative to selling.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.realtrends.com\/blog\/2023\/02\/01\/opinion-its-a-growth-year-for-property-managers\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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