What does the future of property management and real estate investing hold for landlords, rental properties, investors, and residents? Based on our expertise, data, and insights, we think it has a lot to do with emerging technology and a new focus on customer experience.
It’s easy to look at the real estate market on a macroeconomic level. The widespread media and general industry would have you believing that every market follows national trends. But, it’s not a great idea to make predictions and anticipate trends without paring it down to the part of the local market that impacts you and your investments.
What happens in Los Angeles is not necessarily what’s happening in New York or in Tampa or in Dallas. Even within Los Angeles, different neighborhoods will experience different market shifts and trends. When we’re talking about market trends such as pricing, tenant demand, and inventory, it’s difficult to see the trends coming from neighborhood to neighborhood.
While there are a number of nationwide trends that are hard to ignore, it’s important for investors to focus on their local markets and the nuances that come with them. Focus on where you are, not what’s happening for miles around you.
As professional Los Angeles property managers, we can take a look at what’s happened historically. We can carefully track shifts in the market. Let’s talk about the emerging trends we’re currently following and what it means for managing your property and growing your real estate investment portfolio.
Bell Properties is focusing on three things: the market; customer service; and, technology.
Los Angeles Property Management and Real Estate Trends
Home values are up compared to last year. However, they have reached their peak and in some areas have started to slip. Rental values are also declining. This is something to prepare for as an investor and a landlord. We’re losing some residents in L.A. With remote work taking hold in many industries, people are fleeing expensive, crowded cities like Los Angeles in order to live elsewhere. That has lessened demand and dropped prices.
There’s no reason to panic. Prices are still comfortably high for well-maintained Los Angeles rental homes. You simply need to focus on setting yourself apart from the competition. Multifamily properties are especially profitable right now, and that may be a direction you want to go later this year and into next year.
Prepare for rents to remain where they are or to drop just a little bit. You won’t want to make large increases during renewal periods, and you’ll have to offer a lot of value and some great amenities in order to keep your rental value high.
As we head towards 2024, we expect to continue seeing well-qualified residents who are financially comfortable and more than prepared to continue paying higher rental values. Their expectations will also be higher, so you’ll have to be prepared for that. Think about what you can offer that attracts good tenants and justifies a higher rent.
Earlier in the year, there was a lot of talk about another recession.
We heard from a lot of experts that there would be an economic recession and a mini-market crash. That looks far less likely now, and that’s good news for anyone with valuable properties in their portfolios. We expect that the market, in general, will remain strong, and investors will remain profitable.
What if you need or want to sell a property in Los Angeles?
Recently, it felt like everyone was selling properties. Prices were high, inventory was tight, and if you had a home that you were ready to move on from, it was a perfect time to sell for your asking price. Possibly above the asking price.
Price points are still high in Los Angeles. Home values are still strong. There has been some comfortable appreciation for owners and investors. If you’re going to sell, however, you will notice that your asking price needs to be more competitive. Your time on the market may be a bit longer. Homes aren’t moving as quickly as they did during the height of the sales market. There are fewer bidding wars. Less of a willingness among buyers to make offers over the asking price.
This is still Los Angeles. Even as our population wanes, it’s still a desirable place to live, and real estate in this market will always be valuable.
The Future of Property Management: Creating Meaningful Customer Experiences
There has been a steady movement towards better customer service in the entire property management industry over the last few years, and most of us have embraced this and made it a priority in the way we deliver services.
Property managers are leveraging technology in order to give themselves more time to focus on customer service and customer experience. We’re investing in better relationships, more transparent communication, and an understanding of what we can do to really help our owners and our residents.
Good tenant experiences will lead to better retention rates, on-time rent collection, and a better tenancy for everyone. Fewer disputes and legal challenges. Easier lease negotiations. It’s a better business model for you and for us.
Bell Properties expects that serving tenants and treating them like valuable customers will only become more important. Landlords and property managers who are willing to invest in residents will find those investments to be worth their resources.
You can expect to see:
Targeted, strategic advertising
More objective resident screening
A commitment to creating an enjoyable resident experience
These are the things that our property management team will be focused on in 2024, to deliver better experiences for owners and residents.
Customer service is always evolving, and we’re staying ahead of the trends. Our professional development strategies are allowing us to learn more about what tenants want and need from a rental property. You can expect that one of the biggest trends in property management will be integrating the needs of owners and tenants and creating a positive experience for everyone.
Technology Trends in Los Angeles Property Management
There’s always a lot of talk about technology. A decade ago, no one was providing self-showing keypads, and video doorbells were unheard of.
Technology is helping us provide better leasing, management, and maintenance. The improvements have been noticeable.
Lately, there’s a lot of talk about Artificial Intelligence (A.I.). When it comes to property management, A.I. has improved systems and saved time. We know it’s still a developing technology, but over the next few years, we expect it to get smarter and more capable.
A.I. can help with customer service by responding to easy questions online. Those website chat boxes are powered by A.I. but when there’s a question that cannot be answered, a human is usually available to take over.
The artificial intelligence we use in property management can quickly process large amounts of data, and it can do so accurately and with precision. This helps us when it comes to pricing your property more accurately and competitively, marketing your rental home across multiple platforms, and gathering data on maintenance needs.
Costs can also be minimized with A.I. This adds to more satisfaction among our owners and our team members. Rent collection, tenant screening, and other easily delegated tasks will leave our property managers more time to fulfill their more professional endeavors such as the customer experience we’ve talked about.
While we’re on the subject of technology, let’s talk about what you can provide your Los Angeles tenants to make your property more attractive.
We’re talking about smart home tech. This is a huge trend in Los Angeles property management.
Rental homes will adopt more smart home technology over the next decade. We need to be prepared for a high demand from tenants. Some of the most popular smart home tech trends include:
Video doorbells
Smart thermostats
Digital keys
Apps are available to help tenants set timers for their lights, appliances, and tech-driven vacuum cleaners. The dependence all of us have, including tenants, on smart home technology will only grow, and the property owners and managers who can provide it will have an easier time attracting and retaining high-quality residents.
Smart locks allow remote access, which is both secure and convenient. The smart locks or digital keypads allow for easy property showings, and they also allow for maintenance workers to get inside the property without someone running over there to meet them or make another key.
These technologies offer a variety of advantages, from efficiency to cost-savings to increased tenant retention and higher rental values. With the existing technologies already implemented and working well, the future is likely to include additional cutting-edge technology around smart home features that will easily increase tenant satisfaction and ease some of the frustrations in professional property management.
We are not psychic and we do not have crystal balls. But, we do know how to follow the emerging trends in the Los Angeles real estate market and the property management industry.
When you’re looking for a professional property management partner in Los Angeles, make sure you’re choosing a local expert who takes technology seriously and understands what the future looks like for our region and our business.
Talk to us if you have questions. We’d love to hear from you. Contact our team at Bell Properties.
