Tony Seljak of Toronto, Canada owns and operates a property management company that handles the marketing, maintenance, and financial management of over 4,000 large hi-rise condominiums. Below, Mr. Seljak discusses the recently released growth forecast report for property management companies, the introduction of AI technology, outsourcing, the popularity of co-living arrangements and how these implementations are growing the management industry.
By the end of 2021, the global property management industry had grown to
$17.69 billion and is expected to grow an additional 9% to $19.33 billion by the end of 2022. This growth is expected to continue year after year until the end of the decade, at which point the global industry will have reached a market cap of around $37 billion.
Tony Seljak says this stellar expansion comes despite a global slowdown in demand during the COVID-19 pandemic, largely spurred on by a lack of available and affordable housing. Now, buyers have turned into renters, creating a need for more property management services around the world. Tony Seljak explains below what is driving growth within the property management industry and discusses how the market will expand continuously over the next few years.
AI Management Solutions Have Helped Overcome the Limitations of a Post-COVID Environment
Covid-19 has had a significant impact on property management says Tony Seljak. Many property managers have had to adapt their operations to comply with new regulations and guidelines, including social distancing measures, increased cleaning and sanitization protocols, and new rules for common areas and amenities. In some cases, property managers have had to temporarily close facilities or reduce services in order to comply with public health guidelines.
While these changes have presented some challenges, Tony Seljak says they have also created opportunities for
property management companies to adopt new technologies and processes that can help them overcome these challenges. One such technology is AI-powered property management software.
AI property management software can help property managers with a variety of tasks, from marketing and lead generation to lease administration and rent collection. Tony Seljak says that AI-powered software can also help property managers keep track of maintenance requests, work orders, and other tasks. In addition, AI-powered software can help property managers improve their communication with tenants and resolve issues more quickly.
The adoption of AI-powered property management software has been growing rapidly in recent years, and this trend is expected to continue in the post-COVID world. Many property management companies are now using this software to automate tasks, improve communication, and resolve issues more quickly explains Tony Seljak. As a result, AI-powered property management software is expected to play a major role in the industry's growth in the years to come.
A Shift Toward Outsourcing Property Management Continues to Drive Growth Within the Industry
Previously, most apartment buildings or rental complexes were operated in-house by a dedicated landlord or manager. However, in recent years, there has been a shift toward outsourcing property management to third-party companies explains Tony Seljak. There are a number of reasons for this shift:
- Property management is a time-consuming and labor-intensive task. By outsourcing property management, landlords and property owners can free up their time to focus on other tasks, such as marketing and leasing.
2. Property management companies have access to a variety of tools and resources that can help them manage properties more effectively.
3. Management companies are typically more efficient than in-house property managers. This is because property management companies have economies of scale and can spread the cost of their services across a large number of clients.
4. Property management companies can offer a higher level of service than most in-house property managers. This is because property management companies specialize in property management and have the staff and resources to provide a higher level of service.
Tony Seljak says that the outsourcing of property management has been a major driver of growth within the industry, and this trend is expected to continue in the years to come. As more landlords and property owners outsource property management, the demand for property management services is expected to grow.
The Growing Popularity of Co-Living Arrangements Will Drive Further Growth in the Industry
The rise of the sharing economy has spurred a growth of interest in affordable co-living arrangements, particularly among young professionals and students. This type of housing arrangement has tenants share common living spaces, such as kitchens, living rooms, and bathrooms, while enjoying the privacy of their own bedrooms.
Tony Seljak says that the growing popularity of these apartments will help drive growth within the property management industry, as more people seek out co-living arrangements. Much like standard apartments, co-living apartments need to be managed and maintained. As a result, the demand for property management services is expected to grow as the popularity of co-living arrangements continues to rise.
The Takeaway
Tony Seljak explains that the global property management industry is expected to grow significantly in the years to come, thanks to a number of factors, including the outsourcing of property management, the growing popularity of co-living arrangements, and the adoption of AI-powered property management software. By the end of the decade, it’s projected to have doubled in size.
