2023 AppFolio Property Manager Benchmark Report: Growth Outlook Is Positive Among Property Management Organizations Despite Broader Economic Challenges
January 24 2023 - 8:00AM
AppFolio, Inc. (NASDAQ:APPF), a leading provider of cloud business
management solutions for the real estate industry, today released
its inaugural Property Management Benchmark Report, which examines
property management industry sentiment and outlook for 2023.
According to responses from nearly 5,000 employees at U.S.-based
property management companies, there is a strong sense of optimism
– one that significantly surpasses other industries – even as
challenges such as delinquencies, hiring difficulties and inflation
(the three most frequently cited concerns) persist:
- More than half (52%) intend to hire additional staff
- Four out of five respondents (81%) expect their organization’s
revenue to increase in 2023
- Nearly three-quarters (72%) expect net operating income (NOI)
to grow
“Property managers see the challenges before them, but still
view 2023 as a year of growth, whether that means expanding their
portfolios, hiring new staff and improving culture, or streamlining
and automating existing processes to create a more efficient
organization. Notably, there’s a strong focus on staff happiness
and hiring new employees — it’s encouraging to see the property
management industry contributing to U.S. job growth,” said Shane
Trigg, General Manager of Real Estate at AppFolio. “We are thrilled
to power the industry leaders that look at the projected challenges
of 2023 not just as something to overcome but as opportunities to
improve and thrive.”
Other noteworthy takeaways from the 2023 AppFolio Property
Manager Benchmark Report include:
- Risks remain, but property managers see more
opportunities.
- Inflation and delinquencies are the two primary concerns across
all sizes of residential property management organizations, as
cited by nearly half of respondents (46%).
- Hiring and retaining talent are top of mind for all, but
increase in prominence amongst larger organizations with more
staff.
- Expected revenue and NOI increases are driven by opportunities
for growth and improvement, led by the addition of new units (cited
by 55% of respondents) and improving customer service (42%).
- Improving operations, particularly streamlining
financial functions, is key – but motivations vary with
organization size.
- Nearly three in five respondents (59%) working for a company
with more than 5,000 units cite cost reduction as a top focus,
while just 40% of these respondents note freeing up teams from
labor-intensive processes as a top motivation.
- Across the board, however, respondents want to make financial
interactions easier for both residents and the businesses they work
with – 46% of all respondents want to process more rent payments
online and 42% want to improve their accounts payable process.
- Property managers have room to improve their tech
stacks as they scale.
- Large property management companies are much more likely to use
tech built for specific functions. More than half of respondents
from organizations with more than 5,000 units use document
management and storage (73%), maintenance management (57%), utility
management (53%), and CRM (51%) solutions.
- Fewer than a quarter of all respondents have added smart entry
or IoT services (24%) or AI or chatbots for leasing communications
(15%) into their existing tech stack, showing room for growth
across all organizational sizes as function-specific proptech
solutions, like those provided via AppFolio Stack™, become
available for integration directly into core property management
systems.
Download the 2023 AppFolio Property Manager Benchmark Report to
review additional findings and insights.
Survey MethodologyAppFolio surveyed 4,972
employees at U.S.-based property management companies from August
10, 2022 to September 10, 2022.
About AppFolio, Inc.AppFolio, Inc. is a leading
provider of cloud business management solutions for the real estate
industry. Our solutions enable our customers to digitally transform
their businesses, address critical business operations and deliver
a better customer experience. For more information about AppFolio,
visit www.appfolioinc.com.
For more information, please contact:
Mission North for AppFolio
appfolio@missionnorth.com
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