Property managers predict eight trends that will affect the business in 2022. Find out if you can get on the trend this year!

1. Property managers predict eight trends that will affect the business in 2022.
Waves of change rushed across the property management sector in 2021, seemingly from every
aspect. Property management companies have had to cope with the effects of labor and material
shortages, increased restrictions, industry consolidation, and the housing affordability problem.
They’ve had to deal with rising demands and expectations from their tenants and customers, as
well as the possibility of competition from institutional investors and management groups
looking to enter the single-family rental market.
On the other hand, property managers have met each of these challenges head-on by providing
the great customer service that has traditionally made them successful and by implementing new
technologies to get more work done with fewer resources.
Trends in the Property Management Industry in
2022:
1. Single-Family Rentals are attracting more attention.
2. Property Management Industry Consolidation
3. Increased Rental Property Regulation
4. The Benefits of Using a Property Manager’s Services and Expertise
5. Customer Relationships Changing for Property Managers
6. Housing Affordability and Rental Demand
7. Property Management Supply Chain Delays & Labor Shortages

2. 8. Increased Interest in Single-Family Rentals as a result of the Pandemic 1.
1. Single-Family Rentals are attracting more attention.
The possibility to provide tenants with greater living space at more affordable costs than they can
get downtown without the need to qualify for a mortgage has sparked a surge in interest in
single-family rentals and suburban neighborhoods. People of all ages are on the lookout for
rentals that can fit their changing requirements and preferences, and they may stay in the rental
market for longer than prior generations. Even though the surge in interest has created some
competition between small-business property managers and larger investment and management
firms, the ability of smaller companies to provide personalized customer service will continue to
set them apart from larger competitors.
Effect #1: Increased Pandemic-Driven Interest in Large, Low-Cost Rentals
According to property managers, renters are showing an increased interest in apartments with
more interior and outdoor space at more affordable prices. Though renters’ interest in single-
family homes and suburban neighborhoods had begun to rise before the pandemic, demand for
these properties has exploded in the last 18 months, especially as remote work has allowed some
residents to relocate further from city centers.
For example, among the people we poll, the percentage of renters living in single-family homes
has climbed from 32% to 37% since 2018. The percentage of renters living in suburban and rural
areas has gone from 56% to 63%. We expect the high demand for single-family rentals to
continue as Millennials work remotely and add partners, children, pets, and relatives to their
households, necessitating additional space. Baby Boomers seek houses where they may age in
place without the stress of homeownership.
Effect #2: Larger companies are more interested in single-family rentals.
Some property managers are suffering the effects of an inflow of institutional investors,
developers, and property management organizations in their local markets as the popularity of
single-family rentals expand tremendously. Build-to-rent communities are springing up around
the country, competing with single-family homes strewn about existing neighborhoods and
serving as a key driver of the asset class’ current success.
The vast majority of rental properties in Nigeria, on the other hand, remain in the hands of small-
portfolio rental owners, who will continue to rely on local property managers for advice and
assistance in running these properties efficiently, profitably, and in compliance with changing
regulations.
2. Property Management Industry Consolidation
Property managers are watching the industry converge around them, with money flooding into
the single-family rental sector and the strong housing market prompting some small-portfolio
investors and property managers to liquidate their holdings. On the other hand, property
managers can use this opportunity to expand their portfolios by acquiring smaller businesses and
investment portfolios.
What Does This Mean for Property Managers?
The first effect is an increase in the number of investors in the client base of property managers.
As many Accidental Landlords have chosen to sell their rental properties, the share of investors
in property managers’ client base has risen from 67 percent to 71 percent since 2018. Many of

3. these units have been purchased by investors, raising concerns about the effects of property
ownership consolidation on the rental market, such as converting naturally occurring affordable
housing owned by mom-and-pop landlords into market-rate housing owned by investment firms.
However, as previously stated, small-portfolio investors continue to own most of Nigeria’s small
rental properties.
The second effect is that there are more opportunities to expand through acquisitions.
Some property managers and investors are selling off their portfolios rather than responding to
the high speed of change required in the current market. Others will be able to grow due to this:
Over the next two years, 25% of property managers plan to expand through acquisitions of other
companies’ or investors’ portfolios.
3. Increased Rental Property Regulation
Property managers are concerned that the regulatory burdens and financial struggles small
portfolio owners faced during the pandemic have harmed the appeal of investing in residential
rentals, especially as a strong seller’s market makes property sales an appealing option.
However, most landlords intend to keep their properties for the next two years, and many even
intend to extend their holdings.
What Does This Mean for Property Managers?
Effect #1: More Regulation Means More Risk for Rental Property Owners
Property managers are hearing from landlords concerned about the risk of managing rental
properties in this day and age. As a result, they’re offering crucial advice on how to run a
profitable business while adhering to new rules.
Effect #2: Despite the Seller’s Market, the Appeal of Residential Rentals Persists
As the hot housing market encourages rental owners to sell their properties, some property
managers have seen their portfolios shrink. However, most landlords continue to view residential
rentals as a good investment. In fact, according to our most recent poll of small-portfolio rental
owners, 46% intend to purchase new properties in the next two years, the highest level of
expansion we’ve observed in this category since 2017.
4. The Importance of Property Managers’ Services and Knowledge
The epidemic has brought attention to the importance of property managers’ services, especially
in light of quickly changing rules and market conditions. 3 out of 5 property managers say their
clients place a higher value on services now than they did before the epidemic. They are seeing
an increase in demand for their professional skills beyond their regular responsibilities.
How Does This Affect Property Managers?
Effect #1: Increased Regulatory Anxiety Leads to Increased Dependence on Property Managers.
In the face of growing rules and resident-related difficulties, landlords are increasingly hesitant
to self-manage their properties. As a result, the number of rental owners who use a property
manager to manage their properties has increased. In particular, 25% of rental property owners
who use a property manager said they do so largely to guarantee that current regulations operate
their properties.

4. Effect #2: As the number of investor clients grows, the demand for expertise-based services
increases.
Property managers are increasingly being looked to as trustworthy experts on local market
conditions and effective rental property operations by investors. As a result, property managers
see an increase in demand for expertise-based services, with the number of rental owners seeking
financial, investment, and legal assistance rising by 7% since 2019.
Effect #3: Property managers have more work to do due to more resident-related issues.
In the eyes of rental owners, property managers’ ability to attract and maintain exceptional
residents has become a major component of their value. In our most recent survey, 48 percent of
rental property owners said they hired a property manager primarily to help them manage their
tenants—an increase of 6 percentage points in just the last year. Property managers are using
tenant screening to ensure that tenants have steady sources of income, and watertight agreements
are being drafted to safeguard rental owners’ interests when evictions are restricted.
5. The Shifting Customer Relationships of Property Managers
In response to increased demands from renters and rental owners, property managers are
devoting far more time and effort to customer relationships than before the pandemic. ‘Attracting
and retaining exceptional residents’ rose from #9 in 2019 to #1 in 2021 on property managers’
priority lists; for third-party property managers, satisfying current customers and finding the
ideal owners to work with was in third place.
What Does This Mean for Property Managers?
The first effect is more time spent communicating with residents and clients.
Due to the uncertainty of the last two years, property managers have spent significantly more
time communicating with and devising solutions for their customers. Property managers, in
particular, have performed an important role as a mediator between residents and owners during
the pandemic, helping to balance their interests in the face of difficult financial and legal
challenges.
Effect #2: There is an increase in the number of requests from renters who want to spend more
time at home.
Renters have been making increasing requests to property managers due to pandemic-related
lifestyle modifications that have caused them to spend more time at home, notably due to the rise
in remote employment.
Effect #3: Customer Loyalty is Generated through Empathetic Customer Service
Many property managers believe that their relationships have become more personal due to
advising and supporting their customers through the financial stress of the epidemic, resulting in
increased loyalty but needing even more empathy (and time) than before.
Effect #4: Increasing technology does not imply a reduction in customer service.
Because so many client interactions are now digital, property managers believe that creating
outstanding customer service is critical to set themselves apart from the competition. Property
managers can use technology to reduce the amount of time they spend on repetitive tasks,

5. allowing them to focus more on the aspects of their job that technology will never replace:
customer service and industry knowledge.
6. Housing Affordability and Rental Demand
In cities across the country, rising rental demand and a scarcity of affordable housing options
drive up rent costs and intensify competition for available apartments. Even though renters’
difficulties paying their rent have diminished dramatically since the worst of the COVID-19
financial crisis, 10% of renters in our most recent study were concerned about their capacity to
pay their rent. The pandemic may have exacerbated these renters’ financial difficulties, but home
price increase has long exceeded income growth. Though more rental competition may appear to
be beneficial to property managers in the near term, high housing costs can eventually reduce
rental demand by discouraging lower-income workers from starting their own families.
What Does This Mean for Property Managers?
Effect #1: Increased Demand from a More Diverse Renter Population
Young renters creating new households and would-be purchasers priced out of the market are
driving up demand for apartments for property managers. Our annual renter surveys have
revealed that property managers serve a more diverse population than in the past, with an
increase in the number of older adults, children, and multigenerational families living in rental
homes, necessitating the creation of properties that can accommodate a wider range of
occupants.
Effect #2: As affordability deteriorates, fewer qualified applicants apply.
Due to a limited supply of vacant units in many regions, property managers spend more time
sifting through rental applications and evaluating potential tenants. Some landlords are
concerned about the pandemic’s influence on housing affordability and renters’ financial
security. Some are having more difficulty than usual locating qualified candidates for their
properties.
7. Property Management Supply Chain Delays & Labor Shortages
Property managers’ capacity to get work done swiftly and cost-effectively is strained by labor
shortages and supply chain problems, potentially affecting their clients’ satisfaction with their
services.
What Does This Mean for Property Managers?
Effect #1: Increased employee turnover necessitates improved employee retention and
operational efficiency.
Due to human resources scarcity, property management organizations work with smaller teams.
As a result, they’re focusing more on attracting and retaining talent and investing in technology
to help them accomplish more with less.
Material and labor shortages endanger project timelines and budgets.
Due to a shortage of suppliers, materials, appliances, and other necessary resources, property
managers and rental owners face higher property costs and project delays. It has hampered their
ability to promptly respond to property issues and resident requests.

6. 8. Adoption of PropTech During a Pandemic
The pandemic has forced property managers to digitize interactions with customers, staff, and
vendors that they were previously conducting face-to-face. Even as changing epidemic
conditions have allowed some in-person encounters to return, property managers maintain the
technology that has resulted in increased productivity for their teams and better convenience for
their consumers.
What Does This Mean for Property Managers?
Effect #1: The property management technology allows for increased operational efficiency.
Property managers have discovered how much more efficient their operations can be with the
right technology in place while maintaining a high level of service. Thirty percent of property
managers predict that harnessing technology to increase efficiency will be crucial for their
revenue growth plan in 2022.
Effect #2 Customer Acceptance of Technology is Widespread Among Property Managers’
Customers.
Renters and landlords have become more receptive to technology as they witness firsthand how
much easier it makes processes like payments and communication. Property managers’ clients
and inhabitants of all ages now prefer customer-facing technology such as online payments,
email and text conversations, electronic rental applications and lease signing, and online
maintenance requests. Even as some face-to-face engagement resumes, property managers
concur that these technologies are here to stay.
(Effect #3) Reduce the amount of time you spend on recurring tasks.
The pandemic has brought the leasing process online in ways that property managers and rental
applicants could not have imagined before, lowering the amount of time and energy that property
management teams must commit to this area. Electronic rental applications, listings, and lease
agreements are already widely accepted industry standards, and other technologies such as
virtual and self-service showings have gained favor during the epidemic.
2022 Trends in the Property Management Industry
Property managers’ business operations, communication patterns, technology use, and growth
outlook have all been reshaped by the events of 2021. During a year that has been extremely
difficult for almost everyone, it has also affected how property managers and their residents and
clients interact with one another. Under normal circumstances, however, property managers
enjoy the constant change because it means that every day is a new chance to beat their records
and outperform the competition. As a result, property managers will do everything possible to
stay on track with their objectives and meet the needs of their tenants as they push through this
uncertain period.
Property managers’ and owners’ relationships have improved due to the pandemic. Property
managers devised rent collection strategies while prioritizing both the residents’ and rental
owners’ financial needs, making property management services more valuable to clients.

7. Increasing regulations and standards have made property management even more difficult for
everyone. The legal experience of property managers aids owners in navigating the post-
pandemic lawsuit environment.
Furthermore, property managers have a good opportunity of leveraging their knowledge in profit
maximization for the owners by compressing cap rates. The importance of property managers
and their services has been highlighted by COVID-19.
Property managers must be ready to adapt to the latest trends in the property management sector.
Only those companies that embrace advanced property management technologies for a
competitive advantage will be crowned in the future.