Biggest Property Management Trends To Watch Out For In 2015

The real estate market shows an upward trend in terms of home rentals. Some of the most important and noteworthy trends for the year 2015 are as follows:

Property Rents Are Rising

There was a 6.2% increase in average rent prices over the 2013-2014 period; in some areas, rent rates have even doubled. Many real estate experts are looking to capitalise off the current rising price trend. This trend can be attributed to millennials, who are earning more owing the improved economy. Over 25% more millennials are in steady jobs compared to the previous year.

Being more self-sufficient, millennials can now better afford to leave their family homes and branch out on their own. Although a significant proportion of young adults are still living with their parents, this number is steadily declining. Despite gaining independence, millennials are not buying homes yet, preferring instead to rent instead. This opportunity is driving up the home rental market.

While rent price levels are at a record high, they might plunge as the year progresses. This is largely due to the wide supply of rental property. Furthermore, the millennials will eventually switch to buying homes and, when this happens, the rental market prices will climb down from their currently skyrocketing levels.

Biggest Property Management Trends To Watch Out For In 2015

Millennials On The Move

The Gen Yers are becoming more independent and are inclined to be highly mobile. Trends show visits to real estate agents are at an all-time high. As the millennials number in the millions, the real estate industry is rising as a very lucrative and profitable market. This is creating more and more opportunities for the property market, especially since millennials tend to travel around and this is bringing a wealth of opportunity to many of the more remote localities.

Low Mobility Rates

Families are increasingly putting roots, and fewer people tend to move. Despite the widespread movement of the Gen Yers, mobility is low and has been falling for decades. Compared to the 1950s and 1960s, mobility rates have pushed up, but continue to remain low.

This in turn keeps the demand for permanent residences low. Due to this, the focus of property management firms has shifted to the more mobile millennials, thereby helping to make up for the shrinkage in other demographic groups. Property firms are advised to be attentive towards their current residents as well.

A Rising Phone Call Trend

More and more potential homebuyers and renters tend to call the property first. Around 77% of future renters will call the property, and these are the biggest sources of successful clients for property firms. Phone calls create a person-to-person connection and this makes it easy to scope out prospective buyers/ renters.

With the increase in renters and a fall in permanent homebuyers, property management firms are changing their client targeting patterns and instead of concentrating on large families, they tend to concentrate more on millennials who are favouring independence instead of living in their family homes.

The Gen Yers are a rapidly growing demographic and are a promising source of clientele for real estate dealers. Many firms are looking to capitalise off this trend as long as it lasts.

David Mars is a property enthusiast and invests in it. Thus, one of his major pastimes is observing and analysing the market trends. He always invests with and trusts his real estate partner