Property management, typically resistant to economic recessions and downturns, has faced challenges due to the pandemic. Yet, the continuously aggressive and competitive environment has made this industry more resilient, even to COVID-19. However, experts in this area need to follow the new trends that are shaping it, especially technology. In these property management statistics, you’ll find some answers to questions about this industry, its new trends, and some basic info to get you going.
Property Management Statistics (Editor’s Choice)
- 51% of surveyed property owners hire property managers. (Business Wire)
- Over 80% of renters planned to rent instead of own a house in 2021. (LetHub)
- 86% of property managers manage other people’s properties. (NARPM)
- In 2021, the US property management market reached $101.3 billion. (Statista)
- Only 13% of property management companies manage to earn over $1 million in annual revenue. (2nd Kitchen)
- 86% of Millennials would be willing to pay more for a ‘smart’ apartment or house. (Asmag)
- The property management software market is worth $3.04 billion. (Grand View Research)
General Property Management Statistics
1. 51% of surveyed property owners hire property managers.
The number of real estate owners who look at their property as a financial investment is constantly rising. As a result, many owners turn to property managers to handle the rental process and tasks instead of them. Property management industry analysis reveals that over half of surveyed rental owners already use property managers' services, while 24% are looking for one.
2. Maintenance and repairs, with 80%, are the number one property management tasks.
According to property management statistics, other than maintenance, renting out and collecting fees (80%) are equally important tasks in the property management industry. Besides them, there is leasing and advertising (77%), property inspection (74%), evictions (68%), cleaning (62%), accounting (57%), and financial reporting (55%). Finally, there are property sales (53%) and outdoor services (52%).
3. Over one in three Gen Z members would be comfortable buying a house online.
Other generations follow closely beside the Millennials — now, the largest group of home buyers willing to do it online. So, 36% of zoomers are willing to buy a house online too. But, in turn, only 7% of baby boomers and 19% of Gen X are eager to follow the same, according to property management industry trends.
(Cision PR Newswire)
4. US lease renewal rates, with 53.3%, were at an all-time high in 2020.
Despite the negative effects of COVID-19, US apartment retention is constantly climbing, and it broke the records even in 2020. The data from millions of units running on RealPage shows that 53.3% renewed their lease. The retention peaked in April, during the initial lockdown, at 58.5%.
5. New York and San Francisco experienced a serious decline in retention rates at 11.1% and 7.2%, respectively.
Despite the soaring retention rates at the national level, the situation varied across different geographies. Property management statistics show that some areas were hit harder, like the cities along the coasts (San Francisco, New York, Boston, San Jose, Seattle). They suffered an average 5% cut in retention rates in July 2020. Alternatively, mid-America experienced positive renewal rates of a minimum of 3% (St. Louis, Kansas City, Phoenix, Cleveland).
6. Hawaii has three times as many property managers as the national average.
Hawaii is one of the US states with the highest number of property managers per capita. Washington D.C. and the Virgin Islands follow with twice as many per capita as the national average. Next, Wisconsin has fewer professionals per capita, or about 30% of the national average.
7. Over 80% of renters decided to rent instead of own a house in 2021.
Despite the increase in rent across the nation in 2021 (3%), property management industry statistics reveal that most renters continued to rent rather than buy a house. This is crucial for property managers and the entire property management industry. Although this happened as Millennials started entering the proper homebuyer category, COVID-19 worsened their situation, and the majority continued to rent. Also, Gen Z, comprised mostly of recent grads, students, or junior level workers, started looking for affordable rentals.
8. 24% of Gen Z renters plan to continue their ongoing lease.
In line with property management industry trends, many Gen Z renters plan to renew their leases. Yet, around 19% of some segments worry about the current economic downturn and instability. Also, about 23% of Millennials plan to renew their current leases, while 17% consider buying a home.
9. Most managers, 35%, handle around 101-500 property units.
According to data from Buildium, most property managers have a portfolio of a couple of hundred units. Further, 30% have 26-100 units, while 20% handle up to 25 properties. As property management statistics show, only 15% boast a portfolio of over 500 units.
10. 86% of property managers manage other people’s properties.
A recent property management industry report suggests that most property managers handle other people’s rentals. Further, one in three managers handles HOA’s (homeowner association) property. Three in four manage single-family rentals, while two in three manage multi-family rentals.
11. The most common amenities in 19.5% of all multi-family communities are fitness and wellness items.
Based on property management statistics, one of the most specific amenities in multi-family properties is bike-storage rooms. These are cited in 60% of all communities of units. Other than fitness amenities, the most in-demand amenities last year were outdoor spaces and on-demand food services. Conversely, some of the least required amenities were art spaces, childcare services, and gaming.
12. Landlords receive an average of two applications per rental property.
The best way to find a solid tenant in a reasonable amount of time is to spread the word far and wide. All property management efficiency statistics point to effective rental advertisements as the best solution. Only then rental owners could afford to be choosy about their tenants.
(My Smart Move)
13. The majority of renters, or 61%, sign a 12-month lease.
Besides this, it is possible to sign a shorter-term lease, although it’s not very popular among property managers. Finally, there is an option to sign a lease longer than 12 months. However, only 9% opt for it.
14. In December 2021, 92% of renters made a full or partial rent payment.
The NMHC’s rent tracker suggests that the majority of apartment households made their rent payments in December 2021. This data relies on a property management industry analysis of 11.8 million renters of units professionally managed across the country.
15. Most property managers, or 39%, have worked in the industry for three to ten years.
As reported in property management industry statistics, the largest number of managers have worked up to ten years in the field (14% have worked up to two years, 39% up to ten). Further, 24% have 11-20 years of experience in property management. Ultimately, the rate of those working over 20 years is around 22%.
16. 66% of property managers aren’t members of NARPM.
NARPM stands for the National Association of Residential Property Managers. This organization fosters relationships among property managers and the exchange of know-how, along with helping them keep up with the latest trends. However, only 34% of managers claimed to be part of it.
Property Management Industry Statistics
17. In 2021, the US property management market reached $101.3 billion.
This segment is continuously growing in the US, marking a constant rise YoY since 2009. For reference, the property management market size in 2009 was $61.32 billion. Since then, this number skyrocketed to reach a stable growth curve in 2019 ($99.39 billion) and 2020 ($99.53 billion).
18. There are over 300,000 property management firms in the US.
Based on the latest property management industry report, over 300,000 firms handle property-related tasks in the US. Moreover, the industry employs over 367,000 workers (self-employed managers excluded). Further, roughly 220,000 property managers work for companies in this field, accounting for nearly 60% of all property managers.
19. Greystar Real Estate was the number one property management firm in the US in 2020, boasting 730,000 units in its portfolio.
As stated in property management industry statistics, in 2020, Greystar had around 730,000 property units in their care, representing a 36% increase YoY. After them, Lincoln Property Co. is next on the list with about 210,000 units, while the third spot is held by Cushman & Wakefield, with its 172,000 units portfolio. Other than these, there are 37 other companies with a joint portfolio of about 2.4 million units, which grew 25% between 2019 and 2020.
20. The average annual wage for property managers is $73,210.
If you are working in property management, income is not an issue. Usually, the average hourly wage for these professionals is $35.20 per hour, in accordance with property management statistics. The median pay is $26.68 per hour or $59,660 when translated into an annual income. However, the lowest 10% on the chart earn a $31,330 annual median salary, while the top 10% earners make $134,570, which is quite a sum. Finally, to get a job as an entry-level property manager, you need a high school diploma.
21. Only 13% of property management companies manage to earn over $1 million in annual revenue.
In fact, 52% of companies in the industry make approximately less than $250,000 on an annual level.
Property Management Market Trends
22. 34 out of 50 states in the US prohibited evictions during COVID-19, affecting the property management industry negatively.
The growth of the property management industry was slightly curbed by the measures the government adopted to protect tenants and their health during the harsh year of the pandemic. These moratoriums and restrictions passed onto 2021. Hence, property managers' portfolio growth and revenues have been in jeopardy. This resulted in rising costs of some services, including overall maintenance.
23. Three in five property managers believe that their clients see more value in them during the pandemic.
The pandemic cast new light on the value property managers bring to their clients. It's essential today when the market and the regulations in this area are constantly changing. Consequently, property management industry statistics demonstrate that property managers’ services are in great demand.
24. 40% of Millennials are willing to buy a house online after a virtual tour.
Millennials and digital shopping go hand in hand. But nobody would expect it to be true for house shopping too. In fact, roughly 40% confirmed they would be comfortable buying a house online. A higher percentage, 59%, said they would be somewhat confident buying a home after touring it virtually. The majority, or more than 80%, would prefer viewing 3D virtual tours while shopping from home, property management industry statistics confirm. This is when AR and VR experts come on the scene. Considering this is the generation that is buying homes mostly now, they are setting the trends and demands on the market.
(Cision PR Newswire)
25. One company uses AI to screen data from over 30 million lease agreements determining tenants' financial reliability.
Credit scoring and references are key factors in determining a new tenant's possibilities of affording a particular unit. For example, one firm uses AI to screen all lease agreements and predict potential tenants' reliability. This practice saves $31 per unit annually, confirmed by statistics for successful leases with property management companies.
(Alpha Video Surveillance)
26. The cloud accounted for the largest property management market share, with 58% of all revenue.
In 2021, the cloud segment in the property management industry contributed the most in revenue, and it was set to continue growing. The root cause of this expansion lies in the rapid adoption of cloud deployment across many end-users in the industry. Moreover, different benefits like scalability and cost-effectiveness are further driving this growth. The option to back up your data on the cloud, thus preventing its loss, is another crucial feature, property management market trends show.
(Grand View Research)
27. 86% of Millennials would be willing to pay more for a ‘smart’ apartment or home.
One of the things that could drastically increase property management revenue is the introduction of a smart home tech in properties. Almost all surveyed Millennials living in a multi-family home are willing to pay, on average, a fifth more rent for smart features in apartments. Moreover, today’s renters are more and more tech-savvy and expect these functionalities in the apartments they rent.
28. 46% of property managers plan to acquire new properties in the next few years.
According to the trends in property management, the housing market's growth is leading rental owners to sell off their properties. However, many are still considering it a good investment, and nearly half plan to purchase a new property to continue working with rentals. It’s the most significant growth since 2017.
29. Nearly 80% of renters and owners use mobile phones to search online.
A good property management company must be present online to be a step ahead of the competition. With this stat in mind, their website ought to be mobile, user-friendly, and responsive but without interruptions. This means that it should adjust to the screen orientation and size without changing the domain name.
Property Management Software Statistics
30. The global property management software market is $3.04 billion worth.
The property management market size in terms of software is expected to grow at a CAGR of 45.6% between 2022 and 2030. As a result, the demand for property management software will further push market growth. The highest demand is for SaaS property management solutions that could foster daily operations, among many other solutions.
(Grand View Research)
31. There were 345 property management software companies in 2021.
More and more people use some property management software, statistics confirm. It might be for community communication or rent collection. Sometimes, it can be useful for maintenance automation. The price depends on the software functionalities and the companies that produce it. For reference, some annual contracts for property management software range between $1,000 and $5,000.
32. The residential segment accounts for 66% of the property management software market.
There are two segments in the market for property management software — residential and commercial. The first dominates the market with the largest revenue share and is set to keep on growing. The residential segment is further divided into different sub-areas such as multi-family housing, single-family housing, etc.
(Grand View Research)
33. North America dominates the property management software market with a revenue share of 62.5%.
According to property management statistics, its dominance lies in the fact that the most prominent players in the field operate in this region. Some of them are AppFolio, Inc., MRI Software LLC, Entrata, and Yardi Systems Inc. Following North America, Europe is in second place for the market share in terms of revenue. Finally, Asia Pacific is emerging as the rapidly growing region with the fastest CAGR between 2022 and 2030. Most of its success lies in fast-evolving infrastructure and increased demand for improved data administration.
(Grand View Research)
The Bottom Line
As you can see, new trends in property management like AI, cloud services, and other technology solutions are rapidly changing the field. Industry experts are pressing hard to stay on top and adopt these trends faster to outperform the competition. However, handling property is more and more difficult due to the changing regulations. So, property managers need to constantly follow the developments in this field.
Property Management FAQ
How many property management companies are there in the US?
According to some official sources, over 300,000 property management companies are registered in the States. Moreover, property management statistics indicate that this industry employs over 367,000 professionals, not counting self-employed managers.
How big is the property management market?
Statista suggests the property management market in the US reached $101.3 billion in 2021. Compared to 2020, this is a $1.8 billion growth ($99.5 billion in 2020). Namely, since 2009, this market has constantly been growing.
How much is the property management industry worth?
Based on property management industry statistics, this business ranked 5th in the field of Real Estate and Rental and Leasing industry and is the 120th largest in the US overall. In fact, the US market size of property management has grown faster than the country's total economy. For instance, between 2017 and 2022 alone, it has increased by 1.4% per year.
How many people use property managers?
Some recent findings indicate that the majority of rental property owners use the services of property managers. They all think of their property as a financial investment but are not equipped to deal with tenant management and maintenance, property management statistics say. The number of rental owners who use property managers' services is continuously rising. For reference, 51% of surveyed owners hired property managers, and 24% said they were searching for one.
Who is the largest property management company?
In 2020, Greystar Real Estate was the top property management company in the US, with about 730,000 units under their care. Compared to 2019, this is a 36% increase. Next on the list is Lincoln Property Co. handling 210,000 property units, followed by Cushman & Wakefield, boasting a portfolio of about 172,000 units (after the acquisition of Pinnacle Property Management Services in 2020).
How many property managers are in the US?
In line with the latest property management statistics, there are about 80,000 property managers in the US. Some two-thirds employ one to four people and have revenue under $1 million per year. Moreover, 90% operate in a single location, while 66% don’t have a searchable web presence.
(Real Property Management)