From innovative apps streamlining day-to-day operations to property management trends like mid-term renting and community living that redefine industry standards, the realm of property management is witnessing a digital revolution.
Join us as we explore the top tech property management industry trends and apps that are propelling the industry forward, paving the way for a more tenant-centric future of property management.
In 2021, the market size of property management was appraised at USD 18.6 billion. The industry is anticipated to expand, progressing from USD 20.16 billion in 2022 to USD 35.46 billion by 2030, indicating a compound annual growth rate of 8.40% throughout the forecast period (2022-2030).
This means that innovation in property management is not just a necessity but a strategic imperative as the sector continues its robust growth trajectory.
Top Property Management Trends in 2024
With regulations such as the Sustainable Finance Disclosure Regulation (SFDR) and Corporate Sustainability Reporting Directive (CSRD), companies are increasingly prioritizing sustainability. Notably, 90% of S&P 500 firms are now actively producing Environmental, Social, and Governance (ESG) reports, and 62% of investors express interest in technology that aids in monitoring and reporting sustainability.
This growing commitment to sustainability is revolutionizing property management approaches, fostering more energy-efficient, eco-friendly, and technologically advanced buildings that cater to both tenant needs and global environmental concerns.
But the big question that comes with sustainability is how can property managers ensure the technical quality of the building matches the environmental quality? By embracing innovative solutions and fostering a commitment to green building standards. Companies are already using ESG platforms like Measurabl to assess, oversee, and transparently report their ESG data.
Meanwhile, in property management, energy intelligence platforms like DEXMA and energy-saving software like Gridium are becoming indispensable tools. Typically, such tools gather and analyze energy data sourced from various outlets, including meters, sensors, and building management systems.
Users can generate sustainability reports, providing a comprehensive view of their environmental impact, ultimately leading to reduced energy costs and improved energy efficiency. Additionally, the advent of AI tools has taken sustainability practices to a new level with predictive analytics. We’ll delve into these advanced technologies later in the article.
As the strong need for affordable housing will keep growing, co-renting & co-owning will be on the rise, and we’re not talking only about second luxury home ownership aka the one offered by Pacaso.
For instance, 49% of Canadian co-owners state that the reason for co-owning a house is the inability to afford buying a property individually (and that’s why 89% of them co-own a house with their families, turning it into a good old multigenerational household).
So, yes, we can say with confidence that real estate marketplaces like Allihoop, Common, and Badi will popularize the community living approach as a part of co-renting & co-owning trends.
What does community living mean? Before engaging in co-renting, users can explore the profiles of their prospective “suitemates” aka social network to gain insights into community dynamics (for instance, learn more about the community events, which can be anything starting with yoga sessions and finishing with cooking masterclasses). In this case, property management technologies will require efficient booking functionality so tenants can easily book an event and, in turn, property managers can seamlessly manage reservations, monitor usage patterns, and ensure optimal utilization of shared spaces.
Talking about communication – users are more likely to use mobile apps for communication with property managers, submitting maintenance requests, checking leases, and paying their rent. So, a property management tool should come with a comprehensive and user-friendly communications module that integrates with popular messaging platforms as well.
And with co-renting and co-living comes an increased focus on renter’s convenience and a customized experience. Here, smart home automation technologies and their integration with property management platforms help property managers gain valuable insights into how the property is being used and how to improve the co-renter’s experience.
The shift in housing preferences is caused by renters’ desire for flexibility and affordability. As rent prices are skyrocketing, less individuals can afford long-term housing or short-term renting (just think – the nightly rate for mid-term rentals is considerably more affordable, nearly half the cost of short-term rentals.). This makes middle-term residencies the perfect middle ground (pun intended) for digital nomads, medical travelers, mid-term travelers, or community-seeking individuals looking for temporary stay, typically ranging from 1 to 6 months.
And yes, you got it right – companies offering community living like Badi or Common also operate as middle-term marketplaces, since most companies representing this niche target the same audience the mid-term marketplaces do. Commonly, mid-term renting platforms are responsible for collecting the rent, sending rent collection reminders, and, yes, these processes can be automated, ensuring a lower workload for property managers.
On the other hand, there will be more focus on property maintenance and tenant experience in the long term, as property managers of mid-term rentals will have to ensure the cleanliness and comfort of the property for each new tenant. Therefore, a property management app has to allow co-renters to easily submit maintenance requests, while property managers should be able to track the requests and efficiently coordinate timely resolutions, contributing to an enhanced overall tenant experience.
As a technology advisor, we partner with small firms and global enterprises helping them bring automation to their operational processes.
As you’ve already guessed from the previous paragraphs, real estate automation will be at the forefront of property management software trends in 2024 and considering that 45% of landlords manage their own properties, tech developers will have to focus on user-friendly design and intuitive interfaces.
The overall revenue of the property management tech market is projected to increase from $3 billion to $5.5 billion in the coming eight years, meaning that most property management processes will be fully automated by the year 2030.
And when we’re talking about future property management automation, we don’t mean only automated rent collection or 24/7 communication, but also self-touring (prospects can access properties through automated key collection and return processes using secure lockboxes), automated marketing (for instance, CRM systems automate lead qualification and facilitate targeted outreach), data analytics, and the integration of chatbots, virtual assistants, and smart home devices, which we’ll discuss in detail later.
Let’s find out what to expect from property management tech development in the near future.
“As-a-Service” business models have gained popularity since they don’t require long-term commitment from the users whether legally or financially. The absence of long-term commitments allows businesses to scale up or down, experiment with different services, and respond promptly to market fluctuations.
Currently, the most popular real estate ‘as-a-service’ models are:
Space-as-a-Service. This real estate business model provides on-demand access to workspaces, meeting rooms, event spaces, and amenities. And despite WeWork’s recent bankruptcy, we still believe that space-as-a-service will be a trend since most companies are planning to keep their operations remote. For property operators, managing Space-as-a-Service properties will require the use of technologies that provide occupancy tracking (sensors, IoT devices), improve space allocation, reduce energy consumption, and simplify the booking process and management;
Software-as-a-Service. This model is all about offering cloud-based solutions for property management, leasing, and customer relationship management. Software as-a-service eliminates the need for extensive in-house IT infrastructure, reducing upfront costs, and providing real-time updates and accessibility from anywhere. Most real estate companies like RentRedi, Zillow, and Turbotenant offer subscription plans to property operators and landlords, which means that users can adjust their app functionality according to the growing portfolio needs without installing the software on premise;
Data-as-a-Service. Sometimes called Big Data software, data-as-a-service is a business model where real estate software companies get access to real-time data gathered from a variety of credible sources and utilize the data (often as a part of predictive analytics) in a way that helps users get data-driven insights. Meanwhile, property managers can utilize data-as-a-service tools to get access to a wide range of market data, such as comparable sales, rental rates, and trends in occupancy and energy consumption. Hence, property operators can monitor property performance in comparison to benchmarks, pinpoint areas for enhancement, and optimize the allocation of resources.
Benefits for renters:
Benefits for property managers:
Examples of solutions: AppFolio, Buildium, and TurboTenant are all great examples of cloud proptech solutions that automate property management. These SaaS solutions act as all-in-one platforms that centralize property management activities, but differ in:
AI Property Management Trends in 2024
More than 70% of property managers perform property inspections, manage leases, and do advertising all by themselves. This means that property management goes far beyond rent collection or timely equipment maintenance.
We’ve heard from our clients that instead of using an AI lease abstraction tool, most of them stick to ChatGPT. Sure, ChatGPT might be a good tool in the short term when it comes to contract summarization, but the tool can compromise your privacy and legal compliance, doesn’t integrate with other systems, and wasn’t built according to industry standards.
Meanwhile, if you opt for an AI lease abstraction tool, you get a software trained on industry specifics, a tool that integrates with multiple systems, doesn’t compromise your data privacy, can be customized, processes large real estate portfolios, and ensures legal and regulatory compliance of your documents. We’ve already developed one by ourselves, so if you want to learn how to develop an AI lease abstraction tool, please check our article.
Benefits for renters:
Benefits for property managers:
Examples of solutions: Top examples of AI lease abstraction tools on the market are Docsumo, Imprima, Summize, LeaseLens, and Kira Systems. If you’re looking for a simple solution that doesn’t need installation and offers a super-user-friendly workflow, choose LeaseLens. Meanwhile, tech-savvy users that perform lease abstraction on a daily basis, should opt for other solutions with a way more extended functionality on the list.
AI chatbots come in various types, ranging from rule-based systems with predefined responses (like the good old FAQ chatbots) to more sophisticated models incorporating machine learning, allowing them to learn and adapt over time and hold more intricate conversations with users.
Chatbots serve diverse functions in property management, such as answering frequently asked questions, scheduling property viewings, and even handling routine maintenance requests. Their importance lies in their ability to provide instantaneous responses, improving communication channels, and enhancing overall tenant satisfaction.
Benefits for renters:
Benefits for property managers:
Examples of solutions: Two solutions we’d like to mention here are STAN AI and Lea. The first one is an AI-powered chatbot, adaptable across diverse community types, that addresses resident inquiries around the clock, ranging from maintenance requests to room bookings. Renowned for its seamless integration capabilities with various property management tech platforms, STAN ensures a smooth collaboration with third-party systems.
Meanwhile, Lea (introduced by Diffe.rent in 2022) is an omni-channel AI leasing assistant that excels across various communication channels, including email, text, voice, property management AI chatbots, and seamlessly integrates with third-party systems like CRM. The tool qualifies leads, processes tenant requests, and performs repetitive property management tasks like property tour bookings.
Predictive analytics tools in real estate leverage data and advanced algorithms to forecast potential issues in properties, enabling property managers to schedule maintenance activities proactively, minimizing disruptions and reducing overall maintenance costs.
They also help property managers in rent optimization by analyzing historical and current market data and conducting a comparative analysis, hence allowing managers to ensure competitive and dynamic pricing strategies that align with market fluctuations.
Benefits for renters:
Benefits for property managers:
Examples of solutions: Predictive analytics often comes as an add-on functionality in a property management app rather than a separate tool. One of the property management tools that includes predictive analytics is Buildium. With Buildium’s Analytics Hub available in Growth and Premium plans, users can optimize their property management operations, track payment trends, analyze maintenance and task efficiency, manage expenses, and evaluate leasing performance.
This type of AI property management technology allows homeowners to control and monitor various aspects of their homes through intelligent systems that adapt to user preferences. From thermostats and lighting to security systems and appliances, AI-driven smart home automation systems learn user habits and optimize energy consumption. Voice-activated assistants, such as Amazon’s Alexa or Google Assistant, further elevate the user experience by enabling hands-free control of smart devices.
With AI smart home automation, property managers can remotely monitor property aspects like security systems, thermostats, and smart locks. Also, property operators can optimize energy usage within a property by learning occupant patterns and adjusting heating, cooling, and lighting accordingly.
Benefits for renters:
Benefits for property managers:
Examples of solutions: Most AI smart home solutions come as full home control systems or energy control platforms + IoT devices. For instance, AI-driven tools like DEXMA and Gridium may function as standalone energy management systems, gathering data from sources such as utility meters for analysis. Meanwhile, other solutions like Clir Renewables are tailored for the effective management of renewable energy sources, such as solar panels.
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Yes, virtual and augmented reality has been on the rise for the last few years, fueled even further by AI.
Virtual 2D and 3D tours will definitely stay as an irreplaceable part of property management trends, since potential renters can remotely explore the property without a need for face-to-face interactions. Meanwhile, AR tools enable buyers and renters to visualize property transformations by overlaying digital furniture, decor, and color schemes onto real-world spaces before actually committing to any property changes.
Benefits for renters:
Benefits for property managers:
Examples of solutions: Real estate marketplaces like Zillow have already prioritized 2D and 3D tours. Zillow provides its users with a complimentary Zillow 3D Home Tour app, allowing brokers and property owners to effortlessly create interactive floor plans and 3D property tours.
Other solutions like Virtual Staging AI help users visualize the property – all users have to do is upload the property picture, and the tool will add interior elements depending on the design style.
IoT provides a range of real estate technology solutions like smart sensors and devices that allow property managers not only to collect data but also analyze it, enhancing operational efficiency.
And don’t forget sustainability. In the United States, buildings are responsible for the 70% of the energy consumption. Hence, no wonder that among all the technology for property management, it is IoT that will be installed into green building systems to improve energy efficiency and contribute to sustainable property management practices.
But the list of IoT tech doesn’t end here, since it also includes smart keys, smart laundry, automated lawn care, and even automated virtual guards (or simply smart cameras as we know them).
Benefits for renters:
Benefits for property managers:
Examples of solutions: Some examples of IoT are Robin (a Texas lawn care startup that offers robotic solutions), smart locks like Lockly Secure Pro (provides keyless entry, remote lock/unlock, real-time-monitoring, and voice control), and multisensors, such as Aeotec MultiSensor 7 (smart sensor that monitors motion, temperature, humidity, light, vibration, UV levels, and easily integrates with various smart home systems).
What we’ve observed from our experience is that, regardless of the type of solution our clients require, they consistently request the development of both a desktop and a mobile version. Why is this the case?
Clearly, a desktop version is essential when the property management tech solution is intended for use by teams within a company. In other cases, building a mobile version might be optional, but not when it comes to brokers or property managers, since the latter often work on the go.
No wonder that among all property management software trends, we’ll see the rise of applications such as:
Property inspection apps – property managers will be able to conduct inspections by using their phone as a primary device for assessing the property and documenting its conditions;
Tenant portals – this functionality will become even more sophisticated, allowing renters to submit maintenance requests, pay rent, and stay in touch with the property manager 24/7;
Sustainability apps – These apps will allow property managers to monitor energy consumption and receive alerts about potential equipment malfunctions;
Task and calendar management apps – These apps allow property managers to schedule and manage appointments, meetings, and track deadlines;
Lease and document management apps – These often include electronic signature functionality, allowing managers to close deals while on the go. Also, some apps allow users to generate document summaries or document templates and perform legal compliance checks.
Benefits for renters:
Examples of solutions: Most often than not, a property management application is a combination of a few functionalities, hence acts as an all-in-one property management tech platform that comes as solely a mobile app or a tool with both a desktop and mobile version.
For instance, real estate management technology like RentRedi and TurboTenant (both offer an online and mobile app version) are crafted to assist property managers and landlords in simplifying tasks like processing rent payments, conducting tenant screenings, managing maintenance requests, and overseeing financial matters.
Ascendix is a proptech software development company dedicated to helping businesses unlock their technological potential. Although based in Texas, our global reach spans five offices, enabling us to assist both startups and established companies in different geographic destinations.
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Contact us or book a free proptech call to find out how Ascendix can help you streamline your property management workflows.
The outlook for proptech in 2024 is optimistic, fueled by increased investment, groundbreaking AI applications, smart home and building automation along with the growing demand for sustainability and affordable housing solutions.
The proptech investment trends to look for in 2024 are AI-powered solutions, sustainability technologies, co-living, crowdfunding, and fractional ownership platforms, and smart home/building automation systems.
Tania is a fan of technologies and an expert in writing about them. In her content, she shares insights into new trends and proptech solutions in real estate that can help your business thrive while keeping your customers content (pun intended).
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