7 Trends to Watch in 2019
03/25/2019 | Dunn Edwards |
While we are still at the beginning of 2019, spring is upon us, which means now is the perfect time to ditch the excuses and get to work on those professional resolutions — like brushing up on the trends that directly affect your job. Get ready for some serious inspiration with these seven trends to help you — and your property — flourish!
- Seniors
The fact is, with downsizing trends and longer lifespans, senior renters are a growing population. According to the Joint Center for Housing Studies at Harvard University, a majority of U. S. households — approximately 65 million — are headed by someone at least 50 years of age. Seniors require affordable, accessible housing in age-friendly communities. Unfortunately, affordable housing can be scarce in some areas. In addition, seniors need access to public transportation, healthcare, and work, as many are working beyond the traditional retirement age, making them a prime target to set your sights on. - Buying vs. Renting
It appears to be the year of renting vs. buying. Why? Currently, the average rate for a 30-year, fixed-rate mortgage is currently 4.82%, with actual rates ranging from 3.63% to 7.84%. This is still a low rate, so why aren’t more people buying?While many senior homeowners are downsizing, millennials are hesitant when it comes to buying, as they are dealing with student loans, are wary of long-term commitments and are grappling with challenging loan qualifications. This means that, if millennials can afford to buy, it’s often a condo in a gentrified area rather than a home in the suburbs. Trendy neighborhoods are more attractive to many young renters.
- Energy Efficiency
Fannie Mae has a program called Green Rewards for qualified owners to “green up” their properties with updates, including water efficiency, HVAC upgrades, and improvements such as new windows, etc. Now is a great time to look into the advantages of improving your property’s efficiency. These upgrades mean lower energy costs to cover loans and a bump in cash flow. Greener apartments also attract renters looking for lower utility bills, which means you should definitely look more into this trend for your older properties.One of the simplest upgrades a property manager can make is utilizing low-voltage lighting systems, as LED bulbs last longer than traditional bulbs. This means they need to be replaced less frequently — reducing the total cost of ownership for bulbs over the course of years of use.
- Big Data
Big data is a large amount of data that’s studied to make predictions based on patterns of when and how often renters visit your website, as well which pages they visit most. It helps you discover what renters want and predict their rental prospects. This allows you to calculate traffic and set rates, as well as identify slower vs. faster rental seasons — making it easier to implement operational efficiencies and increase occupancy and rents. - Property Management Talent
One of the biggest operating issues for 2019? Finding and retaining onsite property management talent. According to recent reports from Freddie Mac, average rent growth is projected to grow modestly in 2019. Property managers will need to find innovative ways to maximize net operating income, both in creating revenue and controlling costs. Take time when making new hires, get the best and be sure to pay them well. - On-demand Services
These days, it’s vital to offer “on-demand” services that are ready when tenants need them. One example is on-demand property maintenance. For property managers, submitting an order for maintenance or repair is typically a slow and complicated process. Utilizing an on-demand property maintenance solution makes it possible to lower the cost of property maintenance, while decreasing the wait for service from days to a half-hour or less. - Technology
An increasing number of technological solutions are now available to help property managers manage their operations more effectively. In 2019, we will see greater adoption of smart-home technology — specifically, smart lighting, keyless locks, temperature controls, digital security, and carbon dioxide and noise monitoring.
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