BOSTON--(BUSINESS WIRE)--Buildium, the property management solution for real estate professionals, today released the findings from its inaugural Rental Property Owners Survey, conducted in conjunction with subsidiary All Property Management, which sheds light on how rental property owners manage their investment properties, their relationships with property managers and the needs of their tenants. The survey was distributed to All Property Management’s database of more than 1,000 property owners in late February, 2016.
The findings show that an overwhelming majority of rental property owners see their properties primarily as a financial investment, yet many are unequipped for the demands of rental ownership, from maintenance needs to tenant management. This is why an increasing number of rental property owners are actively seeking property management, either for the purpose of lessening their burdens of work and worry or enabling them to more quickly scale and grow. The report aims to help rental property owners calibrate their own expectations and help them better manage their investments.
One of the main themes of the report is centered on the different types of property owners. The report identifies that many rental property owners do not set out to be investors, but are turned into landlords by circumstance, thus falling into two distinct categories—intentional investors and unintentional investors. Despite these differences, they share many of the same concerns when it comes to managing properties.
Key findings from the report include:
- Maintenance and tenant management are the two main pain points that rental property owners need property managers to solve. 62 percent of respondents reported maintenance as the biggest stressor, and finding and keeping good tenants was a close second at 58 percent.
- Most rental property owners find and hire property managers by searching online, using either search engines or a proven online resource, such as All Property Management that can connect them to experienced property managers.
- Good communication is the top reason rental property owners rely on property managers, while poor service was the leading reason rental property owners will leave a property manager, according to 74 percent of respondents.
- Not surprisingly, cost is the top reason self-managing rental property owners decide not to use a property manager, with 50 percent saying they simply don’t want to pay for one.
- However, the number of rental property owners who use a property manager continues to rise. 51 percent of surveyed owners already have a property manager, with an additional 24 percent indicating they are searching for property management in 2016.
- Rental property owners who have expanded their portfolio in the past five years are 65 percent more likely to experience further expansion by 2018. In turn, 58 percent of those who have remained stagnant are likely to remain so, and 68 percent of those who have shrunk their portfolios are likely to continue to contract.
“Managing a rental property can be a rewarding and profitable venture, but it’s also a huge undertaking, whether you’re an intentional or unintentional investor,” said Michael Monteiro, co-founder and CEO of Buildium. “Fortunately, there are a lot of great tools and services that can help rental property owners find a strong property manager that can ease the challenges of property ownership while enabling opportunities for growth.”
A full copy of the 2016 Rental Property Owners Survey can be downloaded from the Buildium website.
Buildium is the only property management solution that helps real estate professionals win new business from property owners and community associations seeking services. Backed by expert advice and relentless support, Buildium enables you to outperform across all facets of your business with intuitive software that balances power, simplicity and ease of use. Buildium services more than 12,500 customers in 46 countries, totaling nearly one million residential units under management. In 2015, Buildium acquired All Property Management, a leading online marketing service for property managers, making Buildium the only company to give property managers a way to acquire new customers and increase revenues. For more information, visit www.buildium.com, and connect with us on Twitter, LinkedIn and Facebook.