DoorLoop conducted a nationwide survey with over 1000 property management professionals to determine the barriers they face in achieving a successful property management career and business growth. In summary, property managers struggle to grow their businesses due to manual administrative tasks and a challenging real estate market.

The rapid changes in the market and high home prices add to these difficulties. But even with these hurdles, the industry grew by 1.9% in 2023. Also, more and more people are using Proptech to help them stay organized and manage properties from anywhere.

The emphasis here is clear: time and efficiency are very important in the property management industry. Read on and understand what challenges property managers face, what opportunities exist, and how technology plays a role in unlocking real growth potential.

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The real estate market is a dynamic and vital sector of the economy, serving as a cornerstone for housing options and fostering business growth opportunities nationwide. However, even within this seemingly thriving market, the property management industry faces significant challenges, particularly during periods of economic downturn.

Property managers in real estate face challenges in a competitive market, balancing tenant needs with profitability, complying with regulations, and optimizing operations. Unlocking growth potential in property management requires addressing these hurdles effectively. What can we learn from our survey results.

Scaling a portfolio can be an incredibly challenging task, especially given the recent surge in the median price of existing home sales. In late 2022, this figure reached an astounding $413,800, marking a staggering 16% increase within just a five-month period, which might have scared some property owners from adding new properties to their portfolios.

But there is hope. In April of 2023, the median price of existing home sales experienced a welcomed decline of approximately 6% compared to its late 2022 peak.

Source: National Associations of Realtors

Although home prices might be “stabilizing,” there are many other factors that will impede property managers and landlords from expanding their portfolios, and that includes time to search and visit prospective properties, knowledge of real estate markets, and available funds.

Reaching a high return on investment (ROI) in Real Estate can be a daunting task. Multiple variables influence the potential returns, requiring careful analysis and strategic decision-making.

Source: FRED — Shaded areas indicate U.S. recessions

Source: National Associations of Realtors

The real estate market presents many different opportunities for investments, you can invest in low-income/workforce housing, commercial real estate, and even great long-term hold investments like land.

All real estate investment categories are great choices for long-term profitable investments. Your choice of investment will depend on your short-term and long-term financial goals. Regardless, Real Estate is a great investment vehicle for generating cash flow, equity appreciation, and for its unique tax advantages.

Our survey found that the key issue preventing landlords and property managers from expanding their portfolios is the constraint of time. The property management industry is fast-paced and the job of a property manager is a stressful one. It’s hard to stay focused and productive as managers are pulled in many directions. Property managers love that their job changes daily and we wanted to dig deeper into the time constraints issues uncovered.

Upon analyzing survey results, we noticed that approximately 23% of respondents identified accounting as the most time-intensive aspect of their business operations. It appears that the recording, tracking, and analysis of financial transactions consume a considerable portion of their daily schedule.

Other activities were also identified as significant contributors to the time drain experienced by property managers. Recordkeeping and task management were notable concerns for 14% of respondents. The need to maintain orderly records, schedules, and communications poses a challenge in time management, especially if the individual has not adopted a paperless method.

Tenant acquisition also emerged as a time-consuming activity, with 10% of respondents citing the search for high-quality tenants as particularly labor-intensive. The tenant-screening process is more than meets the eye; it requires managers and landlords to stay on top of the following tasks:

17% of participants acknowledged that managing work orders consumed a significant amount of their time.

Finally, rent collection was highlighted as a time-consuming task by 12% of respondents. This activity is crucial and inevitable and while seemingly straightforward, it can become complex due to late payments, non-payments, and related disputes.

The analysis presented above revealed the tasks that form the backbone of property management operations and explains why portfolio expansion is a considerable challenge.

Even amidst these operational complexities, the property management industry saw a 1.9% growth in 2023. Given this growth trajectory, the need for solutions that will allow them to manage their time more effectively is imperative given their growth trajectory.

Source: Property Management in the US – Number of Businesses 2004–2029

In the landscape of Property Technology (Proptech), user trends show a preference for solutions that allow for organization and remote management.

We found that a significant 33% of users adopt Proptech solutions to enhance their organization, while 21% utilize them to manage their properties from virtually any location.

DoorLoop helps property managers and landlords accomplish more by doing less. We centralize tenant communications from one platform, automate report creation for every aspect of your business, and with simple integration with all other tools you use, DoorLoop empowers property managers to grow their business and build lasting relationships with tenants.

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In addition to a great product, DoorLoop is building a rich library of resources property managers can leverage to grow their businesses effectively.

To access DoorLoop’s free resources, click here!