In just a few days, we’ll be saying goodbye to 2020. As most of us know, 2020 wasn’t really a “good” year for many businesses, especially since the COVID-19 pandemic has caused complications on the socio-economic order of the world. One of the most affected industries is the real estate and property industry. But as businesses are starting to re-open to bounce back the economy, the property management industry will also need to make necessary changes. So what are the trends for 2020 that people should know about? Here’s what you’ll need to know.
Automation and Technological Trends
The turn of the year means there will be even more technological innovations and advancements on the horizon. Although it might take some time to develop some of these innovations, 2021 will see various significant upgrades in devices and gadgets, especially those manufactured by tech giants. But how do these advancements apply to the fields of real estate and property management?
Well, new cloud-computing software and inter-connected devices have made it easier for those that are managing properties and tenants to weigh in on their options for better business decisions. By next year, there’s going to be software dedicated to cloud-based online property management, which can make the process of managing apartments easier while also reaching a broader audience in terms of marketing. The automation process has also made it easier for tenants to pay their bills and rental fees on time through wire transactions and automatic payments.
Demands in the Construction Industry
As the global economy starts bouncing back up, there is a steady growth in demand for residential construction services. Most experts would say that there will be an uptick in activity in the construction industry in the next five years. This works hand-in-hand with other industries that rely on the property, rent, and construction. In certain urban centers, the demand for apartments in cities considered essential to the economy will increase demand while occupancy rates will fall.
Most experts would say that the market will have two sectors by next year:
- Those that can afford to pay rent on time
- Those that can’t pay rent on time
For the majority of 2020, many residents who are paying for rent ask for an extension for their rent or are negotiating a lower rental fee as much of the socio-economic climate has been changing. Most data would point out that those living in major urban centers and areas are now moving towards more spacious areas, especially when most workers migrate to a work-from-home set-up. That said, potential tenants are willing to pay even more for a fully-furnished home and better services since most individuals will be staying indoors throughout much of the year.
But as confidence surges on the fact that the economy will start bouncing back in the first half of next year, most property managers are now negotiating for an even higher rent rate. Although this might put some people off, this does come with improved standards of living and amenities. When it comes to renting a house, rental fees are steadily rising. Still, the power of negotiation shouldn’t be underestimated.
Other than just negotiating for a reasonable price range for rent, others have also been taking up mortgage loans as a means of getting their very own home. Fortunately, there are loan firms that provide hassle-free mortgage loans to help individuals that are looking for the right property.
There’s bound to be a variety of different trends next year that will make the life of property managers and tenants easier. While these trends might seem exciting, it’s important to note that not everything is set in motion just yet. The bottom line? Knowing about future trends is all about predicting the ebb and flow of different industries and keeping a keen eye out for different business opportunities.