2023 Industry Report

TABLE OF CONTENTS
01 INTRODUCTION 1 04 PROPERTY MANAGERS’ EVOLVING

RELATIONSHIPS WITH RESIDENTS 36
The Challenge of Rental Affordability
02 HOW PROPERTY MANAGEMENT

COMPANIES PLAN TO GROW 3
Amid Strong Demand & High Inflation 36
− Trends in Renters’ Financial Health 38

Trends in Property Managers’ Portfolio Growth 3
− What’s Causing the Shortage
− Property Managers' Plan to of Affordable Housing? 42
Expand Their Portfolios 5
Who Lives in Rental Housing Today 45
Trends in Property Managers’ Revenue Growth 6
− Trend to Watch: The Increase in
− Property Managers' Plan to Increase Families & Older Renters 46
Their Revenue 7
Where Renters Want to Live 47
How Property Management Companies Are
Boosting Their Growth with Technology 9 − Trend to Watch: The Shift Toward
the Suburbs 47
− Renters’ Plans to Move or Stay Put 48
03 PROPERTY MANAGERS’ EVOLVING

RELATIONSHIPS WITH RENTAL OWNERS 11 − This Year’s Most Desirable
Amenities & Characteristics 51
Shifts in Property Managers’ Client Base 11
The Technologies Renters Expect 53
− Owners’ Increased Demand for
Property Management Services 11 − How Renters Prefer to Make Payments 54
− The Increase in Investors Within − How Renters Prefer to Communicate 56

Property Managers’ Client Base 12 − How Renters Search for a Rental 57
Rental Owners’ Plans to Grow or Downsize 14 Renters’ Advice for Property Managers 58
− The Owners Who Don’t Plan to Grow 14
− The Owners Who Plan to Grow 16

05 TAKEAWAYS 61
Rental Owners’ Pain Points & Areas of
Opportunity for Property Managers 19
− What Rental Owners Expect from 06 ABOUT OUR SURVEY RESPONDENTS 62
Their Property Manager 20
− The Technologies Owners Expect 22
− Maintenance & Repairs 25
− Leasing Properties & Marketing Vacancies 27
− Rent Collection & Pricing 29
− Regulatory Guidance & Legal Advice 31
− Financial Reporting & Accounting 32
− Property Improvements 34
Introduction | TOC 1
SECTION 1
Introduction
In recent years, property managers have faced constant
reminders of the conflict that can arise between their
overlapping roles—their responsibility to balance their
clients’ financial interests with their empathy for the renters
whose homes they manage, as well as their concern for
the health of their own business.
This conflict is at the heart of each of the issues that

property management professionals spoke about in
their responses to this year’s Property Management
Industry Survey. More than any other issue this year,
our respondents told us that the collision of pandemic-
driven inflation with the ongoing housing shortage has
put them in an untenable position—especially in a time
when property management companies are determined to
expand their portfolios and improve their profitability.
In our survey, we asked 1,700 industry professionals to

tell us about the opportunities and difficulties they’re
P
R
O experiencing in as much detail as their busy schedules
PE
RT would allow. Forming the backbone of this report, their
IES
MA
N AG
ED responses traced a clear path from current housing
and economic conditions to each of the challenges
they’re focused on overcoming in the next year. To
share just a few of the factors that our respondents
repeatedly identified:
EX
PA
NS
IO
N P
LA
NS Seller’s market conditions: High sales
prices are giving rental owners a reason
FOR to sell their properties, and preventing
SALE
investors from acquiring new rentals at an
ideal pace or price point.
Low margins: The cost of operating a

rental property has risen significantly due
to inflation, supply chain abnormalities, and
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labor shortages, motivating owners to raise

rents to shore up their rental income.
Introduction | 2023 State of the Property Management Industry Report 2
Rental affordability: Strong demand for 2017—and more than half anticipate significant
a limited supply of low- and mid-priced growth. Companies are actively recruiting new
rentals continues to push prices up, clients; scaling up to accommodate their current
overloading renters already dealing clients’ growth; expanding their portfolios with
with inflation and pandemic-induced new property types and in new metro areas; and
financial struggles, and resulting in searching for innovative services to prove their
fewer qualified applicants.
value to owners and renters in a time of intense
Staffing: Owners’ compressed margins competition and strained affordability.
put pressure on property managers to
How do they plan to accomplish all of this, in spite
keep overhead low. This challenges
of the headwinds that respondents identified
companies to optimize their processes
in our survey? We discovered one consistent
to maintain a level of service that proves
the value of professional management, theme across a majority of property management
while operating with smaller teams. professionals’ responses, and it can be summed
up in just 10 words: Personalized customer
Competition: High rent growth and service and streamlined processes, made
RENT rental demand have drawn more
possible with technology.
companies into property management,
increasing the competition for clients Based on the experiences of thousands of
and properties just as property property management professionals—as well as
managers are looking to expand. rental owners and renters—this report will share:
The strategies that property

1
We didn’t even mention the effect that new management companies will use to win
regulations, increased household formation, new business in a hypercompetitive,
heightened customer expectations, and the low-margin environment
ongoing labor shortage are having—and yet,
The tools that will help companies scale
property management professionals are finding 2
their processes as they expand their
reasons to be hopeful about the opportunities portfolios, without increasing headcount
that lie before them.
The economic and demographic trends
Our respondents ranked growth, efficiency, and
3
that continue to drive rental demand,
profitability as their companies’ top three priorities and how they’re shaping property
for 2023, signifying their renewed commitment managers’ focus
to the long-term health of their business after
Opportunities for service-oriented property
surviving the chaos of the last few years. More 4
management companies to create loyal
property management companies plan to add
customers and surpass the competition
new properties to their portfolios in the next
two years than we’ve seen in our survey since We hope that you enjoy our eighth annual State of
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the Property Management Industry Report!

How Property Management Companies Plan to Grow 3
SECTION 2
How Property Management

Companies Plan to Grow
Property management companies have big plans to grow in 2023 and 2024, in spite of the
unusual conditions and uncertainty that continue to characterize the pandemic economy.
This year’s Industry Survey participants were especially generous in sharing the tactics
and technologies that they’ll use to expand. We’ll share their responses in this section, and
also reveal the amount of growth that property management companies have planned for
their portfolios and their revenue over the next two years, and the hurdles they’re focused
on overcoming.
Trends in Property Managers’ Portfolio Growth

Growth, efficiency, and profitability top property management companies’
1
list of priorities for 2023. This is a meaningful departure from the previous two
years, when issues related to people—particularly residents, but also clients,
staff, and vendors—consumed so much of third-party* property managers’ energy
that business-related matters kept getting pushed down the list. Now, they’re
determined to get things back on track and have identified portfolio growth as
their companies’ #1 area of focus.
*Note: Throughout the report, we use the term ‘third-party property managers’ to refer to companies
that manage other investors’ rental properties, rather than or in addition to properties they own.
PROPERTY MANAGERS' RANKED PRIORITIES FOR 2023*
Rank YoY change
Growth 1 0
Efficiency 2 +2
Profitability 3 +2
Owners 4 –1
Residents 5 –3
Staff 6 +2
Vendors 7 0
Marketing 8 +3
Communication 9 +3
Organization 10 0
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Balance 11 –5
Technology 12 –3
Property improvements 13 0
More property management companies have reported portfolio growth in

2
the past two years than we’ve seen since 2017. And the scale of third-party
property managers’ growth has also been larger than in the past: Among the 80%
of respondents who say they’ve grown since 2020, a majority report that their
growth has been significant, which they define as the expansion of their company’s
portfolio by more than 25%.
PROPERTY MANAGERS' PORTFOLIO GROWTH OVER THE PREVIOUS 2 YEARS*
2022 2021 2020 2019 2018 2017

Grew significantly 46% 38% 31% 34% 35% 41%
Grew slightly 35% 39% 42% 37% 39% 41%
Stayed the same size 11% 12% 19% 17% 16% 11%
Shrank 9% 11% 9% 11% 10% 6%
More property management companies plan to expand their portfolios in the

3
next two years than we’ve seen since 2017, both in terms of the number who plan
to grow, as well as the scale of their planned expansion. 92% of third-party property
management companies plan to add new properties to their portfolios in the next
two years, and more than half anticipate significant growth, reflecting an outlook
that’s brightened considerably since the pandemic began.
PROPERTY MANAGERS' EXPECTED PORTFOLIO

GROWTH OVER THE NEXT 2 YEARS*
2%
6%
Expect it to grow significantly

Expect it to grow slightly
54% Expect it to stay the same

38 %
Expect it to shrink
*Excludes property managers who exclusively manage their own investment properties
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PROPERTY MANAGERS' PLAN TO EXPAND THEIR PORTFOLIOS

Rising property costs, heightened regulatory pressure, and the ongoing seller’s market
have motivated a portion of third-party property managers’ clients to sell off their rentals
over the last few years. In order to grow, more than three-quarters of companies will
actively recruit new clients over the next two years; and more than half aim to help their
current clients acquire new properties. In addition, a third of companies plan to grow by
seeking out businesses or portfolios to acquire; purchasing or developing properties of
their own; and expanding their operations to new property types or geographic locations.
HOW PROPERTY MANAGERS PLAN TO GROW THEIR PORTFOLIOS IN THE NEXT 2 YEARS*
Recruiting new
clients 77 %
Encouraging current
clients to grow 51%
Acquiring other
companies/portfolios 39%
Purchasing/building
new properties 31%
Managing new
property types 30%
Expanding to new
metro areas 30%
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Trends in Property Managers’ Revenue Growth

Profitability is property management companies’ third-highest priority for 2023.
1
This goal’s return to the position that it occupied prior to the pandemic is another
sign of companies’ renewed commitment to their long-term health and growth, after
spending more time than they’d like devising solutions to the short-term challenges
of the last few years.
More property management companies have reported revenue growth over the
2
last two years than we’ve seen since 2017 as some pandemic-related financial
difficulties have stabilized. Half of the respondents who are bringing in more than
they were two years ago report that their revenue has grown by a significant
amount—a term that most agree represents growth of more than 25%.
PROPERTY MANAGERS' REVENUE GROWTH OVER THE PREVIOUS 2 YEARS*
2022 2021 2020 2019 2018 2017

Increased significantly 42% 34% 33% 34% 37% 38%
Increased slightly 42% 46% 48% 48% 45% 46%
Stayed the same 10% 12% 13% 13% 12% 11%
Decreased 5% 8% 7% 6% 5% 5%
Virtually all property management companies expect their revenue to rise over
3
the next two years, representing the highest revenue expectations we’ve seen
since 2018, and another significant increase since the pandemic first hit. Half of
our respondents said they expect significant growth in their company’s revenue
throughout 2023 and 2024—an outlook that’s more positive than we’ve seen in our
survey for the last five years.
2%
5% PROPERTY MANAGERS' EXPECTED REVENUE
GROWTH OVER THE NEXT 2 YEARS*
Expect it to increase significantly

47 % Expect it to increase slightly
Expect it to stay the same
46% Expect it to decrease
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*Excludes property managers who exclusively manage their own investment properties
PROPERTY MANAGERS' PLAN TO INCREASE THEIR REVENUE
HOW PROPERTY MANAGERS PLAN TO INCREASE

THEIR REVENUE IN THE NEXT 2 YEARS*
Increasing rents/
resident fees 73%
Leveraging technology
to drive efficiency 48%
Expanding service
offerings 45%
Making value-add
updates to properties 44%
Increasing
rates/client fees 44%
73% of our survey respondents planned to raise rents, and 44% planned to increase the
fees that they charge to clients, between mid-2022 and mid-2024. Many small and mid-
sized property management businesses forewent significant price increases during the
worst of the COVID-19 crisis. However, with their own costs rising astronomically—and with
strong demand for both rentals and property management services expected to continue—
many companies feel that raising their rates is an inevitable next step.
To generate additional revenue, property management companies are searching for add-on
services that appeal to residents with disposable income, and that can set their properties
apart by making them a more enjoyable place to live. Similarly, in response to demand
from investors and competition from larger real estate firms, many property management
companies are offering more services to their clients than in the past. 45% of our
respondents said their company planned to increase the services it provides to renters and
owners over the next two years; though each will have to strike a balance between offering
the services that their customers want, those that set them apart from the competition, and
those that generate consistent revenue.
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Introduction | TOC 8
The Services That PMs Offer, That Owners Want,

and That Generate Revenue
PMs Who Owners Who PMs Who Find

Offer It Want It It Profitable
Rent/fee collection 94% 83% 67%
Leasing properties/
92% 70% 60%
marketing vacancies
Purchasing/selling/
SALE
64% 14% 43%
brokering property sales
Maintenance/repairs 94% 75% 24%
Construction/renovation 58% 23% 19%
Accounting/
bookkeeping
72% 44% 14%
Financial reporting/
50% 25% 8%
benchmarking
Legal advice 12% 25% 8%
Property inspections 88% 66% 7%
Outdoor services 68% 23% 7%
Cleaning 76% 42% 7%
Financial/investment
26% 6% 4%
advice
Evictions 83% 73% 3%

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*Excludes property managers who exclusively manage their own investment properties,
as well as rental owners who don't currently have a property manager
How Property Management Companies Are

Boosting Their Growth with Technology
In their responses to this year’s Industry Survey, property management professionals
repeatedly emphasized that technology has made it possible for their teams to expand
in spite of the limitations that the current market places on them. In fact, half of this year’s
respondents agreed that technology is a critical component of their revenue generation
strategy for the next two years because of its ability to vastly increase their efficiency,
allowing them to do more with less.
The ongoing labor shortage—along with the pressure to keep costs low—can make it hard
for companies to attract and retain high-quality staff members at the same pace at which
they’re adding new doors. As a result, respondents told us, they’re turning to technology to
help them provide consistent, attentive service to their customers without adding to their
teams or overburdening current staff members.
One of the main ways that technology is able to help in this area is through its ability to
centralize key information and communications, allowing anyone to respond to requests
from customers or team members, whether they’re in the office, in the field, or working from
home. In addition, technology helps property management teams to automate repetitive
tasks. This has the benefit of creating more fulfilling work for employees, freeing up their
time so they can focus on higher-order functions like devising strategies to generate
additional revenue, and delivering the quality of service that differentiates small and mid-
sized companies from larger competitors.
The Top Technologies in Use Among Property Managers in 2022
✓ Resident portals ✓ Electronic rental applications
✓ Client portals ✓ Online maintenance ticketing
✓ Electronic payments ✓ Electronic leasing
✓ Accounting tools ✓ Property inspection tools
✓ Tenant screening ✓ Company financials
Up-and-Coming Property Management Technologies for 2023
〉 Maintenance contact center 〉 Automated/bulk invoice

〉 Customer relationship processing
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management software 〉 Self-service showings coordinator

〉 Utility management/billing 〉 Business analytics
〉 Lead generation services 〉 Virtual/360-degree tours
How Property Management Companies
Introduction
Plan to |Grow
TOC 10
IN PMs' WORDS Where Technology Has Made the Biggest Difference
We stopped taking rent payments and Having systems that [are] more streamlined
applications in our office and do it all allows us to take on more properties. Online
electronically, and this has saved us so much payments save time because we do not have
time. We now can focus on relationships and to manually enter them. Texting residents saves
have found that we are attracting better long- time because it’s not a 5-minute phone call.
term clients and tenants. Storing all files electronically saves time as we
(REAL ESTATE BROKER IN GRAND JUNCTION, CO) can access [them] from anywhere, at any time.
(COMPANY OWNER IN SPRINGFIELD, MO)
Automation and API integration. The less

you have to do twice, the more efficient your Having electronic records allows our company
business can become. In a world where time to function 100% remotely, reducing the cost of
is money and relationships are important, any maintaining office space. Our agents are more
time you can free up for your staff is priceless. organized and consistent because of routine
(OPERATIONS MANAGER IN SALT LAKE CITY, UT) tech processes that have been put in place.
Communication between team members allows
the company to run smoothly and efficiently!
Duplicating work has drastically decreased now
that technology allows for all team members to
view work that has already been completed or
still needs to be completed.
(LEASING MANAGER IN BALTIMORE, MD)
Property Managers’ Evolving Relationships with
Introduction
Rental Owners
| TOC 11
SECTION 3
Property Managers’ Evolving

Relationships with Rental Owners
Shifts in Property Managers’ Client Base
OWNERS’ INCREASED DEMAND FOR PROPERTY
MANAGEMENT SERVICES
Since the start of the pandemic, more small-portfolio rental owners than ever before
have partnered with a property manager to run their rentals. Prior to the pandemic, 55%
of the rental owners we survey each year told us that they were working with an expert
to operate their properties. This number rose to 64% in 2020, and remains elevated two
years later at 63%.
THE INCREASING NUMBER OF RENTAL OWNERS WHO WORK

WITH PROPERTY MANAGERS
2022 2021 2020 2019 2018

Have a PM 63% 63% 64% 55% 56%
Don't have a PM 37% 37% 36% 45% 44%
This increase illustrates the degree to which the pandemic-era rental market has
complicated the business of owning rental property, from increased regulations to inflated
costs, supply chain delays, and labor shortages. As a result, rental owners of all experience
levels are turning to property management companies for assistance with regulatory
compliance, resident management, maintenance and repairs, and more—which makes
particular sense when you consider that nearly two-thirds of owners don’t live near their
rental properties.
WHY RENTAL OWNERS CHOSE TO HIRE A PROPERTY MANAGER
Don't live near their property 60%

Need help with maintenance 40%
Need help managing residents 38%
Need help with regulatory compliance 25%
Want to increase their profitability 17%
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Need help with property accounting 12%

Want to be able to focus on growth 6%
Property Managers’ Evolving Relationships with Rental Owners 12
But even as property management teams devote significant energy to client acquisition
and portfolio growth, many have learned that it’s worthwhile to take the time to ensure
that they’re signing the right clients. After the difficulties of the last three years, property
managers told us, they want to work with owners who are willing to invest in their
properties; who understand the delicate balance between profitability and affordability in
the current market; and who will work collaboratively and empathetically with their property
management team and their residents to resolve any issues that arise.
THE INCREASE IN INVESTORS WITHIN PROPERTY

MANAGERS’ CLIENT BASE
Since 2018, we’ve watched the population of Accidental Landlords dwindle relative to the
number of investors seeking property management services. This trend has accelerated
in the last year as the seller’s market has given Accidental Landlords a prime opportunity
to sell off the properties they’d rented out as they waited for their value to rise over the
previous decade.
However, with rising mortgage rates slowing down the pace of home sales, a new
generation of Accidental Landlords may decide to rent out their homes as they wait for a
more lucrative time to sell.
THE SHIFT FROM ACCIDENTAL LANDLORDS TO INVESTORS IN PMs' CLIENT BASE
2022 2021 2020 2019 2018

Intentional Investors 52% 49% 49% 55% 44%
Accidental Landlords 24% 29% 30% 29% 32%
Unintentional Investors 24% 22% 21% 16% 23%
Today, 76% of rental owners consider themselves investors, while just 24% identify as
Accidental Landlords. However, Accidental Landlords may appear to be more prevalent
within property managers’ client base because they’re still the most likely to seek out their
services: 71% of Accidental Landlords currently have a property manager, in comparison
with 62% of Intentional Investors and 59% of Unintentional Investors.
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The 3 Types of Rental Property Owners
Intentional Investors Unintentional Investors Accidental Landlords

acquired their rental property came to own rental property came to own their property
as an investment from the start. due to circumstance, but they due to circumstance, and they
They represent 52% of today’s now consider themselves don’t consider themselves
rental owners—an increase of investors. They comprise 24% investors (though some make
eight percentage points since of small-portfolio rental the transition from Accidental
2018—marking a high point for owners—a number that’s stayed Landlord to Unintentional
this type of investor within the relatively stable over time—but Investor). They represent 24%
population of small-portfolio 2022 is the first year in which of today’s rental owners—a
rental owners. this group is as prevalent within decrease of eight percentage
the rental owner population points since 2018, and five
as Accidental Landlords. points in the last year alone.
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Rental Owners’ Plans to Grow or Downsize

Third-party property management companies have big plans to grow over the next two
years—but are their plans in alignment with their clients’? Here’s what small-portfolio rental
owners have in mind when it comes to acquiring, selling, or holding onto their properties
over the next two years.
THE OWNERS WHO DON’T PLAN TO GROW
Owners Who Plan to Sell

With rental property ownership growing increasingly arduous and costly over the last few
years, many small-portfolio rental owners have concluded that they stand to gain quite a bit
by selling some or all of their properties. Accidental Landlords have been the most eager to
sell off their properties; and for the vast majority, who only own a single rental property, this
means exiting the rental market altogether.
The exodus of “mom-and-pop” landlords from the market is likely not over yet. Our survey
of rental owners was conducted in the first half of 2022. As of that time, 37% of owners
who remained in the rental market were considering selling at least one of their properties
between mid-2022 and mid-2024, of whom 20% rated themselves as likely to sell (a slight
increase since 2021). 55% of owners who planned to sell any of their properties had no
plans to acquire new ones in their place.
RENTAL OWNERS' PLANS TO SELL ANY OF THEIR PROPERTIES IN THE NEXT 2 YEARS
Rental Owners Overall Accidental Landlords Intentional Investors Unintentional Investors

Likely to sell 20% 29% 19% 12%
Slightly likely 17% 15% 18% 16%
Slightly unlikely 12% 9% 13% 14%
Unlikely to sell 51% 46% 50% 58%
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Owners Who Plan to Stay the Same Size ACQUISITION PLANS AMONG RENTAL OWNERS
CONSIDERING SELLING PROPERTIES IN 2022–2024
At the time of our survey, half of rental owners planned
to keep their portfolios the same size between mid-
2022 and mid-2024. This group included both rental Don’t plan to acquire any
owners who didn’t plan to make any changes to their 56 % new properties in place
of the ones they sell
holdings; as well as those who planned to sell off their
more cumbersome or less profitable properties and Plan to acquire new residential
rentals to replace those they
acquire new ones in their place. 28%
sell—as many or more than
they had before
Nearly half of the rental owners who indicated that
they plan to sell some or all of their properties over Plan to acquire new residential
the next two years also intend to acquire new ones rentals to replace those they
11%
sell, though not as many as
during the same period. In fact, a majority plan to
they had before
purchase as many or more residential rentals than
they had before, with some hoping to diversify their Plan to acquire new
commercial properties in
holdings with different property types than they’ve 5%
place of the ones they sell,
had in the past. but not residential rentals
RENTAL OWNERS' PLANS FOR THEIR PORTFOLIOS OVER THE NEXT 2 YEARS
Rental Owners Overall Accidental Landlords Intentional Investors Unintentional Investors

Plan to grow significantly 14% 8% 19% 9%
Plan to grow slightly 26% 15% 28% 32%
Plan to stay the same 47% 52% 42% 53%
Plan to shrink 13% 25% 11% 7%
IN OWNERS' WORDS Their Plans to Keep or Replace Their Properties
Prices are sky-high and HAVE to come down [The] current student market is decreasing, so
one of these days. I'm just a small-time landlord, [we’re] turning some of those properties to a
so [I] have to be very careful about cash flow. different market.
(UNINTENTIONAL INVESTOR IN SAN DIEGO, CA) (SELF-MANAGING INVESTOR IN WATERLOO, IA)
[I will be] selling properties in [a] high-value,

lower-rent county and purchasing properties in
[a] higher-value and higher-rent county.
(INTENTIONAL INVESTOR IN ORLANDO, FL)
THE OWNERS WHO PLAN TO GROW
Owners’ Plans for Portfolio Growth

A majority of rental owners have continued to see residential rentals as a solid investment
throughout the pandemic. Over the past year, however, we’ve seen a significant increase in
the number who think it’s a smart time to deepen their level of investment within the sector.
This includes 40% of rental owners who are looking to add new properties to their portfolios
in the near future, of whom a third plan to expand by a significant amount.
This marks the most sizable increase in rental owners’ growth plans that we’ve seen
in eight years of surveys, with the number of respondents who are in an active growth
phase increasing by 11 percentage points since the early months of the pandemic. Though
investors are the most likely to have plans to invest in more properties (as we’d expect), a
surprising 1 in 5 Accidental Landlords hopes to acquire new properties as well, and may
identify as Unintentional Investors in future surveys.
RENTAL OWNERS' IMPROVING OUTLOOK ON

RESIDENTIAL RENTAL PROPERTIES
2022 2021
Smart area to invest in right now 52% 32%
Somewhat smart area to invest in 27% 40%
Somewhat risky area to invest in 13% 17%
Too risky to invest in right now 8% 10%
IN OWNERS' WORDS Their Plans to Grow or Hold
Even with soaring prices, I'm trying to add Prices are inflated, but if the deals pencil
more doors, as rents are outpacing mortgage out, [investing in rental properties] is
costs and [we’re] seeing a greater need for still a good way to enjoy equity gains,
nice [single-family homes]. cash flow, and depreciation, and [to]
(INTENTIONAL INVESTOR IN DENVER, CO) supplement retirement income.
(INTENTIONAL INVESTOR IN RIVERSIDE, CA)
While most housing prices have been

escalating rapidly the past two years, it is still
possible to find pockets of undervalued units
if you are willing to buy anywhere in the U.S.
(INTENTIONAL INVESTOR IN SAVANNAH, GA)
Third-party property management companies, given the extent to which their business
growth depends on their clients, should definitely feel encouraged by these figures.
However, the pace at which owners acquire new rentals will, of course, depend on the
trajectory that property prices and interest rates take from here. As many rental owners and
property management professionals identified in this year’s surveys, acquiring properties at
the top of the market makes it harder to balance rent prices that sufficiently cover owners’
mortgage payments and property costs with prices that the average renter can afford.
Owners’ Plans for Revenue Growth

4 in 5 rental owners expect their properties’ revenue to increase in the next two years—an
increase of 20 percentage points since the low point of the pandemic. Investors are feeling
particularly optimistic, though most expect their growth to be slight rather than significant.
Most rental owners now own their properties primarily as a source of income, including
57% of owners who are actively reliant on their rental income to pay their bills or fund their
retirement. (This stands in contrast with the Accidental Landlords of the previous decade,
who had more personal reasons for owning their rental properties—often homes that they’d
inherited or used to live in.) With only 1 in 3 small-portfolio rental owners reporting that their
properties are consistently profitable, increasing their income while lowering their costs is
top of mind, though the current environment presents considerable challenges.
RENTAL OWNERS' REVENUE GROWTH EXPECTATIONS

FOR THE NEXT 2 YEARS
2022 2021 2020

Expect it to increase significantly 24% 12% 13%
Expect it to increase slightly 56% 52% 48%
Expect it to stay the same 17% 29% 33%
Expect it to decrease 3% 7% 7%
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How Small-Portfolio Owners Plan to Generate Additional Revenue

✓ Expanding to new areas, property types, demographics, and types of investments –
e.g. multiple metro areas, vacation rentals, student housing, property development
✓ Hiring a property manager in order to spend less time on operational aspects of
rental ownership, and more on revenue-driving activities – e.g. acquiring new rentals,
flipping properties
✓ Raising rents or resident-paid fees while lowering property costs (staying below rates
that hurt their properties’ occupancy) – e.g. having renters pay a flat fee for utilities
that the owner previously covered
✓ Updating their properties to justify higher rents and raise their property values
✓ Changing up their leasing practices to avoid and shorten vacancies – e.g. keeping
rent increases low for their best residents, having their PM initiate the renewal
process earlier
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Rental Owners’ Pain Points & Areas of

Opportunity for Property Managers
With every passing year, third-party property managers describe their relationships with
their clients as more of a balancing act: They have big plans to grow, but in order to do so,
they have to win new, growth-oriented clients in an extremely competitive environment;
while also supporting their current clients in expanding and maintaining their portfolios.
More often than in the past, property managers told us, they need to set accurate
expectations for their owners when it comes to the potential profitability of any property
they acquire. With margins shrinking and new apps popping up every year, property
managers worry that the temptation is very real for owners to run their properties without
the assistance of an expert.
Together, what all of this means is that property management companies are working
harder than ever to demonstrate the value of their services—and based on our most recent
survey of small-portfolio rental owners, their efforts are paying off. By our measure, owners
who work with a property manager to run their rentals are less stressed than owners who
attempt to do so on their own by a full 16 percentage points. 1 in 4 owners with a property
manager report that they didn’t experience any stress related to their property in the last
year, in comparison with just 1 in 10 owners who run their properties on their own.
RENTAL OWNERS’ RANKED SOURCES OF STRESS IN THE LAST YEAR
Rank YoY Change

Maintenance 1 0
Finding/working with a property manager 2 +3
Accounting 3 +1
Renovations 4 +4
Legal issues 5 +1
Filling vacancies 6 –4
Residents 7 (tie) –4
Vendors 7 (tie) 0
Rent collection 9 0
Finances 10 +1
Communication 11 +2
Growth 12 –2
Balance 13 –1
TABLE OF CONTENTS
Efficiency 14 0
Helping owners to navigate shifting legal conditions, fill vacancies with high-quality renters,
respond to maintenance emergencies, collect rents, and fulfill other time-consuming and
complex duties remains a strong value proposition for professional property management
services, no matter the market—and that’s why the number of rental owners who work with
property managers continues to rise.
In this section, we’ll talk about the services and technologies that rental owners expect their
property management company to provide; where rental owners are feeling the most pain;
and the opportunity that property managers have to prove their value and increase their
revenue by meeting their clients’ evolving needs.
WHAT RENTAL OWNERS EXPECT FROM THEIR

PROPERTY MANAGER
The 9 Services That Most Rental Owners Expect Their

PM to Provide
✓ Rent collection ✓ Accounting & bookkeeping
✓ Maintenance & repairs ✓ Regulatory guidance
✓ Leasing properties & & legal advice

marketing vacancies ✓ Construction & renovation
✓ Evictions ✓ Outdoor services
✓ Financial reporting
& benchmarking
The Top 6 Considerations for Rental Owners in Hiring a PM

〉 Customer service quality
〉 Reporting & transparency
〉 Local market expertise
〉 Regulatory expertise
〉 Online presence & reputation
〉 Referrals & word-of-mouth reputation
TABLE OF CONTENTS
Introduction
Rental Owners
| TOC 21
IN OWNERS' WORDS What They Look for in a Property Manager
Highly communicative with both tenants and Expertise [and] superior knowledge of her
me. Be available to respond as needed for job. Understands my goals for my property.
emergencies. Professional, considers all risks Timely response to both mine and my
as well as upside, seeks counsel or advice tenants’ reasonable needs and requests [with]
when unsure, detail-oriented, understands trustworthy, two-way communication. Assertive,
and is aligned with my needs as an investor, decisive, and lawful responses to difficult
takes a long view (20-30 years or more) on situations. Helps me make informed decisions
our relationship and portfolio. Really think on improvements and problems. Has discovered
about the significance of the portfolio I am the best group of vendors to call on when
entrusting to you and manage it in a fiduciary necessary. [I want to] feel like I am a participating
manner. Actively provide me with ideas for member of my team [and] my opinions are
forced equity, tax strategies, risk mitigation, and valued and respected.
scaling my portfolio. In return, I will introduce (ACCIDENTAL LANDLORD IN OGDEN, UT)
you to my network, mentor you, and send

business your way.
(INTENTIONAL INVESTOR IN PROVO, UT)
THE TECHNOLOGIES OWNERS EXPECT

As of 2022, 80% of rental owners are comfortable doing business online—a number
that’s risen steadily since the beginning of the pandemic, with investors catching
on to the benefits of technology the fastest. Most rental owners now expect their
property management company to send and receive payments, maintenance
requests, messages, and documents online; and to manage processes like leasing,
property accounting, and financial reporting electronically as well.
Property management companies are increasingly providing their clients with access
to owner portals, which give them self-service access to the information they need
to feel reassured that their properties are in good hands, from inspection reports
to monthly statements. Survey respondents told us that this has resulted in fewer
incoming requests from owners, and requires significantly less manual work from
property management teams.
The Tools with the Largest Gains in Interest from Owners in 2022
〉 Online document sharing: +17 percentage points
〉 Property accounting software: +12 points
〉 Digital communications: +8 points
〉 Digital financial reports: +6 points
〉 Property inspection tools: +5 points
The Types of Information Rental Owners Most Want from Their PM

〉 Accounting, bookkeeping & financial statements
〉 Property inspection reports with photos
〉 Maintenance & repair records
〉 Assessments of property value and suggested improvements
〉 Updates on renters and vacancy status
〉 Local market updates
TABLE OF CONTENTS
Introduction
Rental Owners
| TOC 23
IN OWNERS' WORDS The Info They Want to Receive (and How Often)
Rent opportunities, when [the property] is Market analysis specific to my portfolio—is the
rented, increases in rent charges, need for neighborhood trending up/down, major local
maintenance, any issues going on, end-of-year news that may impact returns.
paperwork for taxes, monthly communications (INTENTIONAL INVESTOR IN JACKSONVILLE, FL)
regarding rent disbursement.

(ACCIDENTAL LANDLORD IN COLORADO SPRINGS, CO) Weekly summary reports and monthly
financial and operating reports on occupancy,
Financial statement and maintenance reports maintenance, and capital projects.
with photo documentation once per month. Instantaneous updates on acquisition of
(UNINTENTIONAL INVESTOR IN NEW ORLEANS, LA) target properties. Ad hoc communication on
possible improvements.
(INTENTIONAL INVESTOR IN PROVO, UT)
FEATURES THAT ALLOW YOU TO SHARE

THE INFORMATION OWNERS WANT
WITHOUT SLOWING YOU DOWN
The right property management software can give
you access to the information you need to make
data-driven decisions and keep your rental owners
happy. Communicate with your clients and give
them self-service access to the information they
want—whenever and wherever it’s convenient for
them—with features like:
Analytics & insights
Owner portals
Property accounting
Financial reporting
Maintenance request tracking
Mobile property inspections
Learn how Buildium’s simple, unified platform can

help you to take control of your portfolio, your
business, and your life: buildium.com/features/
Learn how Propertyware’s open and customizable

platform can enable you to reach and exceed your
business goals: propertyware.com/rental-property-
management-software/
TABLE OF CONTENTS
MAINTENANCE & REPAIRS
Challenges Property Managers Are Facing

AVAILABILITY OF SUPPLIES & VENDORS
Thanks to macroeconomic forces like supply chain delays, inflation, and labor shortages,
property management companies are having greater difficulty finding supplies, appliances,
and maintenance workers on the timeline that renters would like, and at the price point
that owners would like. When emergency repairs are needed, property management
companies find themselves in competition with larger firms and developers for a small pool
of skilled workers. In addition, our respondents said, it’s harder to get owners to spring for
preventative maintenance when high costs have severely strained their rental income.
RISING CUSTOMER EXPECTATIONS
With residents spending more time at home, property management companies noticed a
significant uptick in both the amount of wear and tear that residents’ units receive, as well
as the number of maintenance requests that their teams receive. They also told us that the
switch to online processes (as well as the steady influx of a new generation of tech-native
renters) has increased residents’ expectation that property management teams provide
instantaneous responses and solutions.
Customer Demand for This Service

For each of the five years that we’ve asked rental owners about their greatest sources of
stress, maintenance has been at the top of the list. Half of survey respondents who found
rental ownership stressful in the last year identified maintenance as a top pain point; and
nearly half said that the need for assistance with emergency repairs and preventative
maintenance is the primary reason they work with a property manager.
THE DIFFERENCE A PROPERTY MANAGER MAKES

Maintenance services are critical not only for owners who don’t have the time or expertise
to deal with these responsibilities on their own, but also for the majority of owners who
don’t live near their rental properties, with emergency repairs standing out as a particular
pain point. We found that rental owners with a property manager’s assistance in this area
report lower stress levels by a difference of seven percentage points. TABLE OF CONTENTS
Opportunities to Increase Revenue & Efficiency

Maintenance services are offered by 94% of the third-party property management
companies represented in our survey, making this the most popular service that they offer
to clients (tied with rent collection). However, just 24% of our respondents reported that
maintenance services are a leading source of revenue for their business, which is likely a
consequence of high labor and material costs.
How PMs Are Making This Service More Profitable

〉 Bringing maintenance requests online to cut down on time spent
coordinating work orders
〉 Providing residents with a maintenance contact center for emergencies
outside of business hours
〉 Building an in-house maintenance team to maximize profits from this
service, or overseeing maintenance work performed by vendors
〉 Expanding their offerings into preventative maintenance (beyond the basics),
renovations, outdoor services, pest control, and other related areas
〉 Offering resident services like HVAC filter replacement, garbage pick-up,
and a priority maintenance queue that also improve the rental experience
〉 Charging property inspection fees to owners every 6 to 12 months,
with detailed reports and photos to make the value more tangible
A majority of both renters and owners expect property management companies to provide
online maintenance ticketing, where residents can submit and track repair requests.
Additional tools that help property managers meet their customers’ needs in this area
include a maintenance contact center and mobile property inspection tools.
IN PMs' WORDS Where Technology Has Made a Difference
[The] Buildium app is helpful for operating on We have a maintenance system that has improved
the run while in the field. [It] helps with task our labor efficiency ratio and [helps us] track open
alerts and creating [work orders] for vendors. maintenance requests.
(PROPERTY MANAGER IN OKLAHOMA CITY, OK) (COMPANY OWNER IN KENNEWICK, WA)
[Maintenance ticketing makes it] easy to Electronic property inspection templates are time-
assign repairs and keep up with updates saving, photos can be uploaded directly to the
for both owners and tenants. It is [a] great report and sent to owners/tenants. [We also use a]
accountability tool. maintenance customer service line for after-hours
(MAINTENANCE MANAGER IN CAPE CORAL, FL) calls so issues are being addressed 24/7.
(LEASING MANAGER IN BRUNSWICK, GA)
LEASING PROPERTIES & MARKETING VACANCIES

RENTER QUALITY
Recent levels of rent growth have made renter quality a significant pain point for property
FOR RENT
management companies and landlords. Our survey respondents told us that applicants with
incomes at least three times the monthly rent are increasingly rare; and low credit scores,
inconsistent payments, evictions, foreclosures, and employment instability have become
increasingly commonplace in renters’ histories.
DEMAND OUTSTRIPPING SUPPLY
Property management professionals—particularly those who operate in popular metro

areas—have reported that demand for rentals is outstripping the availability of units for
lease, driving the record-high occupancy rates that the industry witnessed over the last
year. With so much competition for a limited number of low- to mid-priced units, property
managers find themselves worrying about where renters will live when their applications
aren’t accepted or their leases aren’t renewed.

In the current high-occupancy environment, the amount of stress that rental owners feel
about filling vacancies has temporarily decreased. However, a desire to outsource the
energy-intensive work of managing, attracting, and retaining residents remains a top reason
why rental owners seek a property manager’s help—particularly Accidental Landlords.
Rental owners with a property manager are less stressed about filling vacancies by a
difference of six percentage points, making this another area where working with an expert
has a significant impact. In this year’s survey, owners named three key areas of leasing
where their property manager has helped them in the last year: finding high-quality renters,
positioning their properties against local market trends, and handling reams of leasing-
related communications.
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Leasing services are property managers’ third-most common offering, with 92% of the
third-party property management companies represented in our survey reporting that
they provide this to their clients. In addition, however, leasing services are companies’
second-most profitable offering: 60% of those who offer it report that it’s a leading
source of revenue for their business.

✓ Significantly cutting down time spent on leasing through
virtual and self-showings, electronic leasing, online applications
and tenant screening, and listing syndication
✓ Providing resident benefit packages with offerings like credit reporting,
renters insurance, identity protection, utility set-up, and HVAC filter delivery
✓ Charging additional fees, such as those for lease administration,
renewals, and management during periods of vacancy
(so long as owners feel there’s sufficient value)
✓ Offering tenant placement services/relocation assistance
to residents in need of a new place to live
Both renters and rental owners now expect that listings, applications, and leases
will be shared, signed, and stored online. We’ve also seen a large uptick in renters’
interest in virtual showings and 3D tours over the last two years, with the pandemic
increasing their appetite for technologies that help them sense what it’s like to live in
a property without physically visiting it.
Online services really help with automation and Self-showings [have] allowed us to almost
a smooth process, [and they] make processing double our doors without increasing the number
[applications] and finding the most qualified of leasing agents.
applicant a breeze! When [an applicant is] trying (COMPANY OWNER IN VIRGINIA BEACH, VA)
to move to this area, they can view photos,

apply, be approved, pay the deposit, and sign Electronic applications have been extraordinarily
the lease all without being here. helpful in streamlining the process of tracking
(LEASING MANAGER IN CRESTVIEW, FL) an applicant from prospect to resident. We have
saved many hours of work, and reams of paper,
by digitizing the process.
(PROPERTY ACCOUNTANT IN WASHINGTON, DC)
RENT COLLECTION & PRICING
1650
$ Challenges Property Managers Are Facing
RENT
RENTAL AFFORDABILITY & PRICING
With rental prices and property costs reaching previously unseen levels, property managers
are struggling to set prices that their residents can afford; that allow their owners to
cover their own rising bills; and that show enough of a profit to prove the continued value
of their services.
Rent collection is a service that virtually all rental owners want, and that virtually all property
managers provide. Rental owners who work with a property manager to run their properties
are less stressed about resident-related issues—of which rent collection has been a big one
in recent years—by a difference of five percentage points. During the pandemic, property
managers’ efforts to track down late payments, help residents access financial aid, set rents
at appropriate levels, and keep owners informed of their progress have made a significant
difference in rental owners’ stress levels, particularly for Accidental Landlords.
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94% of third-party property management companies offer rent and fee collection to their
clients, and 67% say that it’s a significant source of revenue—the highest rate among the 13
services we asked about. But because rent collection is so central to property managers’
business model, many believe that there’s always room for improvement.

〉 Enabling credit card payments and charging a small convenience fee (where allowed)
〉 Offering payment-related services, such as a security deposit alternative
(for renters) or a tenant payment guarantee (for clients)
〉 Expanding payment collection services to local community associations
A significant majority of rental owners and renters now expect their property management
company to offer the option of making payments online—including older adults who may
have been wary of electronic payments prior to the pandemic. In each of our surveys over
the last few years, renters have continually emphasized how much they appreciate being
able to pay in the way that’s most convenient for them, from any location and at any time;
whether that’s a card payment made through their resident portal, or a cash payment made
at a nearby store.
[Giving] our residents an online payment The option for e-payment of owner
option has hands-down been the best decision disbursements has really saved me time and
we have made for both our efficiency and [the] hassle of hand-writing checks.
their convenience. (PROPERTY MANAGER)
(PROPERTY MANAGER IN TOLEDO, OH)
We have been using [Buildium’s] Resident

Center for online rent payments for a while, but
Automated EFT allows us to save time from
have recently added Retail Cash and have had
processing monthly rent payments, then taking
greater success [in] getting residents paying
the trip to the bank for deposit, and then
remotely vs. bringing in/mailing in payments.
confirming several days later that the payments
(OFFICE MANAGER IN COLUMBUS, OH)
have been posted or if they have been returned
due to [insufficient funds]. ePay takes all these
worries away.
(OFFICE MANAGER IN NEW YORK, NY)
REGULATORY GUIDANCE & LEGAL ADVICE

INCREASING REGULATIONS
The uptick in tenant protections during the pandemic—and the frequency with which
these laws have shifted—has caused immense confusion and concern for rental owners,
particularly when it comes to collections and evictions. Respondents told us that these
legal shifts have contributed to rental owners’ exodus from the market, particularly in
states like California, Colorado, and Oregon. But among the many owners who remain
in the market, there’s been a noticeable increase in demand for property managers’
expertise in ensuring that their properties are operating in compliance with both new and
long-standing regulations.
Customer Demand for Regulatory Guidance & Legal Advice

Legal issues and regulatory compliance have steadily risen up rental owners’ list of
concerns since 2018, and now occupy position #5, though our survey respondents are
feeling less stressed in this area than they did at the height of the pandemic. Still, as of
2022, 25% of owners say that their need for assistance with legal issues and compliance
was a primary motivation in their decision to hire a property manager, and regulatory
expertise was also one of owners' top selection criteria. However, just 51% say that their
property management company currently offers legal advice as a service, while an
additional 20% wish that this was provided to them.
Rental owners who work with a property manager reported lower levels of stress regarding
legal issues and regulatory compliance by a significant difference of 12 percentage points,
making this the area where property managers have the most measurable impact on rental
owners’ pain points.

Just 12% of third-party property management companies currently provide legal advice as a
service, of whom a miniscule percentage (8%) report that this service generates a significant
amount of revenue. However, there’s a fair amount of demand from customers for guidance
in this area. So, for teams who have the required expertise, or who develop partnerships
with local attorneys, legal services can help differentiate them from the competition. At a
minimum, property managers can satisfy rental owners’ desire for guidance in this area by
staying up-to-date on rental market regulations at local, state, and federal levels to assuage
their concerns about their properties’ compliance.
TABLE OF CONTENTS
FINANCIAL REPORTING & ACCOUNTING

Accounting is rental owners’ third-highest source of stress in 2022. This is a pain point
that has deepened for rental owners during the pandemic, perhaps as residents’ financial
difficulties have increased the complexity of their procedures.
In addition, financial reporting is an area where many rental owners feel that their property
management company could do more to communicate the full picture of their rentals’
performance, from cash flow statements and rent ledgers to detailed lists of expenses
and repairs made within their properties. 40% of rental owners say that finding a property
manager who regularly shares financial reports, profit/loss statements, and other property
insights is a priority in their search, particularly for investors; and there’s an appetite among
Accidental Landlords for more prescriptive financial and investment advice.
Rental owners without a property manager are more stressed about accounting and
bookkeeping than those with one by a difference of six percentage points, making this yet
another area where having a property manager has a measurable impact.

72% of third-party property management companies offer accounting and bookkeeping
services to their clients, but only 14% report that it generates significant revenue for their
business. The right accounting software can not only make this process vastly more
efficient, but can also help less accounting-savvy employees to keep track of income,
expenses, and other key data points in a central location that both owners and other team
members can easily view.
Accounting and financial reporting are two areas where we’ve seen a noticeable increase
in owners’ desire for digital delivery of information. 58% of rental owners now expect their
property management company to use dedicated property accounting tools rather than
tracking income and expenses by hand or in a spreadsheet—an increase of 12 points over
the last year alone.
In addition, 57% of rental owners want their property management company to provide
them with financial reports in a digital format—for example, through their owner portal—
representing an increase of six percentage points in the last year alone. Providing owners
with on-demand access to property insights can not only help owners feel more at ease
about the health of their properties at any given time (without the need to reach out to
TABLE OF CONTENTS
your team for help), but also presents an excellent opportunity for property managers to
demonstrate the value of their expertise.
Introduction
Rental Owners
| TOC 33
IN
IN PMs'
PMs' WORDS
WORDS Where Technology Has Made a Difference
Automatic property management accounting I wouldn't be able to keep track of financials

software is wonderful. Saves time of inputting or understand three-way bank reconciliations
everything by hand. It allows [us] to have all without the aid of technology. Technology helps
the information on tenants, owners, accounts to keep me organized.
receivable, and accounts payable in one (COMPANY OWNER IN DENVER, CO)
location, so there is no need to have information

spread all over the office. [The biggest impact has been in] revenue
(REAL ESTATE BROKER) collections and accounting/financial reporting.
Technology’s best use in our space is the
Buildium reports are invaluable. To hand- [automation] of repetitive tasks, leaving
generate those would be too specialized decision-making to the human side
time-consuming. of [the] operation.
(COMPANY OWNER IN WENATCHEE, WA) (COMPANY OWNER IN CINCINNATI, OH)
PROPERTY IMPROVEMENTS

LOW PROPERTY MARGINS
Many small rental properties are getting on in their years, are seeing increased wear and
tear, or need updates in order to justify higher rent prices. However, in an environment
where two-thirds of rental owners aren’t consistently earning a profit from their properties,
setting aside a portion of their rental income for property enhancements is a hard sell. In
addition, the same macroeconomic forces that we discussed in the section on maintenance
services have strained the availability of construction materials and labor, causing prices to
rise higher than ever.

Renovations are rental owners’ fourth-highest source of stress in 2022—the highest position
that this concern has ever held, as rental owners feel the pressure to update their properties
at the same time as their rentals’ profitability is strained. Just 51% of rental owners say that
their property management company currently offers renovation services, and an additional
12% say that they wish this service were provided to them. Not every property management
team will have the skill set to offer construction and renovation services, and not every
rental owner will need them at any given time; but it’s an area that poses an opportunity for
certain companies.
TABLE OF CONTENTS

58% of third-party property management companies report offering construction and
renovation services, but just 19% say that this is a key driver of revenue for their business.
As with maintenance services, this is likely a reflection of the current high cost of both
materials and skilled labor.
✓ Expanding their in-house repairs team to include painters, contractors,

and other professionals to work on property turns and renovations
✓ Consulting with owners on updates that current or prospective
properties might need to generate more revenue
✓ Advertising renovation services to local homeowners or rental
owners looking to convert a house into a rental
✓ Offering to manage construction projects for owners
who don’t live near their rental properties
✓ Supervising capital improvement projects for larger communities
Learn more about how property managers can prove the value of their
services to Accidental Landlords and Small-Portfolio Investors in our
2022 Rental Owners' Reports.
DOWNLOAD THE REPORT 〉 DOWNLOAD THE REPORT 〉

Property Managers’ Evolving Relationships with Residents 36
SECTION 4
Property Managers’ Evolving

Relationships with Residents
The Challenge of Rental Affordability Amid
Strong Demand & High Inflation
Within this year’s Industry Survey, few property management professionals spoke about the
recent pace of rent growth as a clear-cut opportunity for their business. Instead, many told
us that balancing prices that their residents can afford with prices that allow their clients to
pay their own rising bills has become their foremost struggle.
Property managers told us that for the most part, they’ve tried to keep increases low
on lease renewals to avoid pricing out reliable residents. But they’ve also discovered
the ceiling on rent increases for new leases: Though vacant units are receiving an
overwhelming amount of applications, there’s a finite number of applicants whose income
fully covers the rent at current rates.
At the same time, however, property management companies are under pressure to raise
prices to market rate in the next year, with property costs rising just as quickly as rents; and
with some owners feeling tempted to switch to a property management company with lower
rates, manage their properties on their own, or sell off their properties altogether.
Within this section, we’ll review where rent growth, payment rates, and evictions currently
stand; take a look at renters’ overall financial health; examine the causes of the housing
shortage that’s driving current trends; and discuss why rent control policies worsen the
affordability issues they aim to solve.
Update on Rent Growth

In the first quarter of 2022, single-family properties saw asking rents grow by 13%, in
comparison with an average price increase of 3% per year between 2015 and 2019,
according to CoreLogic.(1) During the same time period, data from RealPage showed double-
digit growth over the previous year's prices for professionally managed apartment buildings
in markets across the country.(2)
At the high end of the rent growth continuum, popular Sun Belt markets experienced price
increases of between 22 and 42% year over year, according to an analysis of RealPage data
by Harvard’s Joint Center for Housing Studies. This has been a shock for renters inhabiting
TABLE OF CONTENTS
once-affordable cities in states like Florida, Arizona, Texas, North Carolina, and Nevada.
Though primary markets in states like California, New York, and Massachusetts all took a
hit during the first year of the pandemic, they, too, saw double-digit growth in asking rents
between Q1-2021 and Q1-2022.(2)
By the end of Q2-2022, though rent growth remained well above historic levels, it showed
signs of moderating. This was not a surprise given the unsustainable pace of growth we’ve
seen over the previous year, but was somewhat surprising given the timing during leasing
season. Metro areas with especially high rates of rent growth—and significant decreases in
affordability for local residents—seemed to be the first to show signs of deceleration. These
areas (primarily Sun Belt cities that have seen an influx of new residents) include Phoenix,
AZ; Las Vegas, NV; Tampa, FL; and Palm Beach, FL, according to CoStar.(3)
Update on Payment Rates & Eviction Rates

Rent payments have stabilized significantly since the early months of the pandemic.
However, 15% of renters reported that they were still behind on rent, according to a Joint
Center for Housing Studies analysis of data from the Census Bureau’s Household Pulse
Surveys. That rate is closer to 23% in states with high poverty rates, like Mississippi and
Louisiana; as well as in states with a high cost of living, like New York and New Jersey.(2)
Also as of early 2022, evictions had returned to 2012–2016 levels in half of the cities
tracked in Princeton University’s Eviction Lab database as pandemic-era tenant protections
have gradually expired.(2)
TABLE OF CONTENTS
TRENDS IN RENTERS’ FINANCIAL HEALTH To evaluate renters’ overall financial health, we’ll
take a look at five different indicators measured by
Rental affordability has gradually worsened over
this year’s Renters’ Survey.
the last twenty years, but has become a particularly
pressing issue for low- and middle-income renters RENTERS' HOUSEHOLD INCOME
during the pandemic. Between 2001 and 2019, Within our sample, renters’ incomes appear to
the median price of rent in the U.S. grew by 16%, have increased over the last year. We saw the
while the median income among renters rose by number of households earning annual salaries
just 5%, according to a Joint Center for Housing of less than $50,000 decrease by 10 percentage
Studies analysis of American Community Survey points between Q1-2021 and Q1-2022 as those
data.(2) This effect is particularly pronounced within renters moved into higher income brackets. This
smaller rental properties that have traditionally is primarily a result of increasing wages; but it may
been more affordable for renters, whereas also reflect the presence of higher-income renters
RealPage has found that renters’ incomes within who ordinarily would have left our sample to
market-rate apartment buildings are generally transition to homeownership if market conditions
keeping pace with recent rent increases.(4) hadn’t been so impenetrable for first-time buyers
over the last two years. (53% of young and middle-
Though this imbalance already threatened the
aged adults—and rising—say that their inability to
state of rental affordability over the previous
afford a home is the primary reason why they rent.)
decade, pandemic-driven market conditions
have pushed this trend further in the wrong Unfortunately, inflation has severely watered
direction. In 2020 alone, the number of renters down the positive effects of rising wages. In
who were considered “cost-burdened” rose by June 2022, we saw inflation increase by 9%
several percentage points, leaving 46% of renters year over year, resulting in a 4% decrease in real
spending more than a third of their income on average hourly earnings when the high price of
housing, and 24% spending more than half— housing, food, energy, gas, and other expenses
figures that have almost certainly worsened is taken into account, according to the Bureau
throughout 2021 and 2022.(2) of Labor Statistics.(5)
RISING INCOMES AMONG RENTER HOUSEHOLDS
2022 11% 9% 6% 7%
2021
50 60% % 33 % 25
%
<$50k $50k-99k $100-149k >$150k

TABLE OF CONTENTS
Property Managers’ Evolving Relationships
Introduction
with Residents
| TOC 39
RENTERS’ EMPLOYMENT STATUS
64% of respondents to our Renters’ Survey in the spring of 2022 were employed—a
significant improvement of 10 percentage points over the previous 12 months as the labor
market adjusted to pandemic conditions.
IMPROVEMENTS IN RENTERS' EMPLOYMENT

OVER THE LAST YEAR
2022 2021
Full-time (salaried) 25% 22%
Full-time (hourly) 23% 16%
Retired* 21% 23%
Part-time/temp/freelance* 11% 11%
Out of work 7% 15%
Student 5% 3%
Business owner* 4% 6%
Stay-at-home parent 3% 5%
*Note: Between 2021 and 2022, we moved 'freelancer' from the 'business owner' category to the 'part time/
temporary' category, which may account for any change between these two employment statuses over the
last year. In addition, the number of retirees in our sample is higher than in the population overall because
we intentionally recruit equal numbers of renters in every age group.
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RENTERS’ ABILITY TO PAY BILLS RENTERS' ABILITY TO PAY THEIR BILLS OVER
THE LAST YEAR
64% of renters have paid all of their bills on time
and in full over the last year, and an additional 26%
Able to pay all bills
have been able to pay most bills on time and in
on time & in full 64%
full. However, 11% reported that they’re struggling
to keep up with their household expenses.
RENTERS’ ACCESS TO SAVINGS Able to pay most bills

on time & in full 26%
56% of renters have been able to set aside income
as savings in the last year, giving them critical Struggling to
11%
resources to fall back on in times of financial need, keep up with bills
or (for some) to save for a home of their own.
Another 18% of renters have been able to maintain
their existing savings, though they weren’t able to RENTERS' ABILITY TO SET ASIDE SAVINGS
OVER THE LAST YEAR
add to it over the last year. Concerningly, however,
25% have no savings at all—whether they’ve
never had the ability to set money aside, or have
26%
depleted the savings they once had.
30%
RENTERS’ LEVEL OF DEBT
In addition to paying their rent each month, 3 in 4

renters devote a share of their income to paying
off loans. Middle-aged renters are the most likely
25%
to have debt, and are most often working to pay 18%
off revolving credit card balances and vehicle
loans; followed by young adults, who frequently
Consistently able to save
have student loans in addition to credit card debt
Sometimes able to save
and car loans.
Not able to save, but have
maintained existing savings
Not able to save and have
depleted existing savings
MOST COMMON TYPES OF DEBT AMONG
41 % TODAY'S RENTERS
31%
27% 24%
18% 14% 11% 10%
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Revolving Vehicle Student Medical Personal Consumer/ Personal No debt

credit loans loans debt debt to installment bank loans
card family/ credit
balance friends
Which Renters Are Struggling Most?

11% of the renters we surveyed have had trouble keeping up with their bills over
the last year. Here are some patterns we’ve identified as to which renters are
experiencing financial difficulties:
More likely to be unemployed or underemployed, and less likely to have an

employed significant other to lean on.
More likely to have debt than other renters—particularly credit card debt—and
significantly less likely to have savings to fall back on.
More likely to be middle-aged: 15% of middle-aged renters, versus 10% of older

renters and 8% of young adult renters, are struggling to pay their bills each month.
More likely to live in households with 3+ occupants: Middle-aged adults who are

struggling to pay the bills tend to support larger households, including a significant
other, children, or other relatives. Young adults under financial strain often move in
with their parents or other family members. Older adults are the exception: those
who live on their own are more likely to be struggling to get by.
Knowing how competitive the current rental market is, property management professionals
told us that they worry about the small group of residents who have been making an effort
to pay each month, but who simply can’t keep up with payments as aid programs come
to an end. Even renters who have been able to keep up with their rent on paper may be
relying on credit cards, savings, and loans from friends and family to make ends meet—
resources that are all diminishing after nearly three years of the COVID-19 crisis.
IN PMs' WORDS The Impacts of the Housing Affordability Crisis
There is not enough affordable housing. Every owner/ Just raising rents will not cover rising expenses,
investor wants top dollar rent for their property, but [and] it will put more tenants in the street. We
there are fewer and fewer renters that are able to all need to find ways to be profitable without
afford that. More housing needs to be built. making life unbearable for those in the lowest
(PROPERTY MANAGER IN SACRAMENTO, CA) level of the economy.
(PROPERTY ACCOUNTANT IN PHOENIX, AZ)
Not enough housing stock. Not renewing someone's

lease means there's a good chance they become
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homeless. That's a weight we didn't have to carry

before, and we are forced to deal with this ethical
issue that Wall Street should care about more.
(COMPANY OWNER IN LEWISTON, ME)
WHAT’S CAUSING THE SHORTAGE OF AFFORDABLE HOUSING?

Over the last few years, demand for rentals has completely outstripped the supply of
available housing. This has driven vacancy rates to record lows—particularly in suburban
and affordable urban neighborhoods, both of which saw vacancy rates fall below 5% in
Q4-2021, according to a Joint Center for Housing Studies analysis of data from CoStar.(2)
In this section, we’ll take a look at the conditions that are driving the current rate of growth
in rents and occupancy rates, and talk about why rent control is an ineffective solution to
the affordability crisis.
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DEMOGRAPHIC TRENDS DRIVING THE CRISIS
As the economy emerged from the initial wave of the pandemic, we saw new households
being formed at a heightened pace. Recent household formation has been driven primarily
by Millennials, who have reached the age at which adults tend to transition from living with
family or roommates to living on their own or with a partner. And when they do so, at least
initially, they tend to rent—particularly as many young and middle-aged renters have found
themselves shut out of the ultra-competitive housing market for the time being.
This swell in the total number of renter households has added up to 1.1 million additional
households living in rental properties since 2020(2)—one of the main reasons why rental
occupancy rates have remained so high. Particularly in the markets that have attracted an
influx of new residents in the last few years, prospective renters have found fewer available
properties on the market than ever before, resulting in greater competition and higher
prices for the units that are available.
CONSTRUCTION TRENDS DRIVING THE CRISIS
All of this is on top of the existing shortage of affordable housing, whose origins are
complex and generally predate the current crisis. They include the suppressed rate of
residential construction due to labor shortages following the Great Recession; local zoning
laws that prevent the construction of multifamily housing; and land and material prices
that make it hard to build profitable housing at affordable price points. But at its heart, the
housing shortage comes down to simple economics: Demand is outpacing supply, and with
the pandemic exacerbating these conditions, rents have risen to previously unseen levels in
markets across the U.S.
The construction of both single-family and multifamily rentals has been occurring at a
record-setting clip throughout 2021 and 2022. However, the addition of new, affordable
rental housing simply can’t keep up with the demand—and construction continues to be
focused on maximally profitable, high-end rentals.(2)
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THE COUNTERINTUITIVE EFFECTS OF RENT CONTROL POLICIES ON HOUSING AFFORDABILITY
Rent control policies have been under discussion in many areas that have seen affordability
stretched to a breaking point. However, as many real estate professionals intuitively
understand, these policies target the effect of the affordable housing crisis rather
than the cause.
Rent control tends to have a cooling effect on markets where it’s implemented. When new
residents move to the area, or when current residents’ housing needs change, they have
greater difficulty finding a place to live because existing residents tend to stay put to lock
in lower rates. When they’re unable to adjust rent prices to keep pace with property costs,
many small-portfolio rental owners don’t have enough rental income left over to reinvest
in the property through maintenance and improvements. This not only impacts living
conditions within the property—it also motivates some owners to sell, potentially handing
their properties to larger investors with every incentive to raise rents to market rate.
But most problematic of all is the cooling effect that rent control has on efforts to build
new housing—the keystone of any effective strategy to improve rental affordability. The
Wall Street Journal estimates that a rent control measure passed in St. Paul, Minnesota
in November 2021 has led to an 82% decline in multifamily building permits in the city in
comparison with the previous year, as developers have abandoned existing projects and
chosen to initiate new projects elsewhere.(6)
Why does rent control have such a chilling effect on real estate development? With prices
for land, materials, and labor rising with every passing year, developers and their lenders
need rents to be set at higher rates for projects to pencil out. When annual rent growth is
capped in an attempt to keep rents affordable, significantly less housing is built—pushing up
prices for existing properties, and exacerbating the housing shortage.
As of this spring, the Wall Street Journal reported that rent control measures were up for
discussion in a dozen different states, from Massachusetts, New Jersey, and Florida on the
East Coast to Colorado out west.(6) However, awareness of the policy’s ineffectiveness as a
means to address housing affordability—and the critical need to remove barriers that limit
the country’s rate of housing production—is also spreading. TABLE OF CONTENTS
Who Lives in Rental Housing Today

DEMOGRAPHIC TRENDS TO WATCH
CHANGES IN THE TYPES OF HOUSEHOLDS LIVING IN RENTAL PROPERTIES
2022
27 % 2022
28%
2021
27 % 2021
31%
Couples One-Person
Without Kids Households
2022
23% 2022
15%
2021
19% 2021
9%
Multigenerational Couples with Kids
Households
2022
12% 2022
3%
2021
12% 2021
4%
Roommate Single-Parent
Households Households
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THE INCREASE IN FAMILY RENTERS

Multigenerational Households and Couples with Kids
represent the two fastest-growing types of renter
households within our sample. Though One-Person
Households and Couples Without Kids are still the
most prevalent household types within today’s
rentals, families are rapidly catching up.
The forces behind this trend include the following:

〉 The hot housing market, which has forced
some couples to grow their families while
living in rental housing rather than waiting
until they’ve purchased a home of their own
〉 The sheer size of the Millennial and
Baby Boomer generations, resulting in
more households where both children
and older relatives are present
〉 Rapid growth in the population of people of
color, who are more likely to live in households
with children as well as multiple generations(2)
THE INCREASE IN OLDER RENTERS

The oldest Baby Boomers—members of the second-
largest generation of all time—are now in their mid-
seventies. As a result, the population of older adults
is expected to swell to more than 50 million by 2038.
Many of these adults will live alone: Already, 28% of
Americans between the ages of 50 and 64, 38% of
those ages 65 to 79, and 56% of those ages 80 and
older live by themselves, according to a Joint Center
for Housing Studies analysis of data from the U.S.
Census Bureau.(2)
This growing population of older residents will

need access to ADA-accessible dwellings within
communities that can support their evolving needs—
but they’ll also need to be affordable to residents
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living on a fixed income, neither of which our current

stock of rental housing can accommodate on the
scale that’s needed.(2)
Introduction
with Residents
| TOC 47
Where Renters Want to Live

TREND TO WATCH: THE SHIFT TOWARD THE SUBURBS
Over the last five years, the renters we’ve surveyed have indicated a growing preference
for neighborhoods that are safe, quiet, and lower-density—a shift that was accelerated
by the pandemic. As a result, we’ve seen a 12-percentage-point shift away from urban
neighborhoods, with 68% of our respondents now residing in suburban and rural areas.
This trend holds across every age group, though middle-aged renters have left downtown
neighborhoods at the highest rate.
Overall, a Joint Center for Housing Studies analysis of Census data shows that 1.2 million
Americans left core neighborhoods within large metro areas in 2021, continuing a trend that
began in 2020. They moved to small and mid-sized cities, which gained 539,000 residents
in 2021; suburban neighborhoods outside of large cities, which gained 428,000 residents;
and rural areas, which gained 235,000 residents.(2)
RENTERS' GRADUAL SHIFT TOWARD SUBURBAN & RURAL AREAS
2022 2021 2020 2019 2018

Renters in urban areas 32% 37% 31% 36% 44%
Renters in the suburbs 52% 47% 54% 49% 44%
Renters in rural areas 16% 16% 16% 15% 13%
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RENTERS’ PLANS TO MOVE OR STAY PUT
Trend to Watch: Low Moving Rates

The amount of ink that’s been spilled over pandemic-era migration trends makes it seem
as though people are moving more than they did in the past. However, as you may have
surmised from your own properties, the opposite is true: Not only do the vast majority of
Americans stay put from year to year, but moving rates have been below historical averages
since the Great Recession—and in 2021, they were actually lower than the norm established
over the previous decade.
This decrease in mobility has occurred even among the two groups who tend to move
most often: young adults and renters. Just 17% of renters moved in 2021—a decrease
of six percentage points in comparison with the previous decade, according to a Joint
Center for Housing Studies analysis of data from the Census Bureau’s Current Population
Survey. In addition, moving rates among 18- to 24-year-olds fell by four percentage points;
and they declined nearly as much among 25- to 34-year-olds in comparison with the
previous 10 years.(2)
To blame for this trend are affordability concerns—the high rate of rent growth on new
leases, plus the expenses associated with moving and putting down a deposit on a new
home—in addition to the limited supply of available rentals and starter homes.
The Renters Who Plan to Stay Put

As of our survey in the first half of 2022, 36% of renters planned to stay in their current
rental between mid-2022 and mid-2023.
A quick summary of how we got here: Within our sample, we saw retention rates drop
precipitously in 2020 as pandemic-driven shifts in residents’ lifestyles changed their rental
preferences. Retention then rose dramatically in 2021 as occupancy rates soared. In 2022,
retention has leveled out at slightly below the long-term average.
RENTERS' PLANS TO MOVE YEAR BY YEAR
2022 H2-2021 H1-2021 2020 2019 2018

Plan to stay in current rental 36% 41% 49% 26% 40% 41%
On the fence 33% 30% 30% 42% 33% 37%
Plan to leave current rental 31% 29% 21% 32% 27% 23%
Note: Renters' responses describe their plans to move between the time of our survey (June 2022) and June 2023.
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Who are the residents who plan to renew their leases for another year?
Within our survey, renters with the following characteristics were the least likely to
be considering moving:
✓ Renters who live alone ✓ Residents of small multifamily
✓ Older adults, particularly Baby properties (those with 2–4 units)

Boomers and retirees ✓ Renters who say they don’t
✓ Households with incomes of less than want the responsibility of

$50,000 per year, and those who owning a home
don’t have any savings set aside
The Renters Who Plan to Move Out

Between mid-2022 and mid-2023, 31% of the renters in our survey planned to move out of
their current rentals; and an additional 33% of renters were on the fence about whether or
not to move. As renters take factors like rising rents and moving costs into account, we’ve
noticed that they’re feeling greater uncertainty about whether to stay or go than they have
for the last few years—particularly younger renters.
Here’s who our survey revealed are the most likely demographics to be set on moving
out by the midpoint of next year:
✓ Young adults with full- ✓ Households with annual incomes

time employment of more than $150,000 who have
✓ Couples and families with kids
been able to save up for a down
payment over the last year
✓ Residents of single-family
✓ Renters with a strong desire
properties and high-end rentals
to own a home
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WHY RENTERS ARE CONSIDERING MOVING OUT
Homeownership: 35% of renters who are considering moving plan to purchase a

home of their own—particularly young and middle-aged couples and families
Affordability: 32% of renters considering moving out named affordability as a

primary consideration, whether they’re struggling financially or looking for
better value
Location: 25% of renters who are considering moving may change locations for
personal reasons, while 17% (primarily young adults) may do so for work or school
Amenities: 22% of renters thinking of moving out are looking for a rental with
features that are more desirable or that better suit their needs, particularly young
adults, followed by middle-aged renters with kids
Space: 18% of renters may move in the next year because their household’s needs
have changed, whether they need more space, less space, or a different layout
Experience: 14% of renters are considering moving because they haven’t been
satisfied with their experience in their current rental
Property managers have a sense that their customers’ expectations have dramatically
ramped up over the last few years—particularly their insistence on instantaneous responses.
In addition, multiple Industry Survey respondents told us that as rent prices rise, so do
renters’ expectations for the caliber of their rental experience.
In an environment where local property management companies are competing with

national firms and institutional investors, providing an unsurpassed experience for their
renters can be an effective differentiator when competing for rental owners’ business. And
the way they can accomplish this, according to renters and property managers alike, is by
combining technology that makes processes more convenient and seamless for renters and
TABLE OF CONTENTS
owners with the kind of human connection that creates memorable experiences.
THIS YEAR’S MOST DESIRABLE AMENITIES & CHARACTERISTICS
NEIGHBORHOOD
ORGANIZED
AGAINST CRIME
Safe
1 neighborhood
2 Air
conditioning
3 &In-unit
dryer
washer
4 High-speed
internet
5 Quiet
neighborhood
6 Option to
have a pet
7 Parking 8 Dishwasher
Close to stores
9 & resturants
10 Private
space
outdoor
The Decreased Draw of Community Amenities

Today’s renters are increasingly drawn to properties that offer the comforts of a home at
an affordable price point—and they’re increasingly finding these characteristics in smaller
rental properties located in suburban and exurban neighborhoods. In their search for
an ideal rental property, residents say they care most about living in a safe, convenient
neighborhood, closely followed by a desire for amenities that increase their comfort in
their unit; and they care least about the kind of shared amenities that are found in newer,
higher-end communities. It’s not that the average renter wouldn’t enjoy having access
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to features like a pool, fitness center, or lounge—they’re simply willing to forego these
luxuries in exchange for lower rents.
What Single-Family Renters Want

✓ A safe, quiet, family-friendly neighborhood
✓ The indoor and outdoor space they need to be comfortable as they welcome kids,
relatives, and pets to their family
✓ A child-friendly home that provides air conditioning, a washer and dryer,
and a dishwasher
✓ Offerings that could be potential differentiators: High-speed internet; lawn care;
pest control; garbage/recycling/compost pick-up; access to community
amenities like a garden, pool, and space to host events; regular preventative
maintenance visits
What Small Multifamily Renters Want

✓ A safe, quiet neighborhood with easy access to stores, restaurants, and
transportation to work or school
✓ A property that balances affordability with a convenient location, and that offers a
little more indoor and outdoor space than an apartment building would
✓ A unit that provides a washer and dryer, air conditioning, a dishwasher, sound-
proofed walls, and the option to have a pet
✓ Offerings that could be potential differentiators: Private parking, high-speed
internet, storage units, security system, designated outdoor area for pets
What Apartment Building Renters Want

✓ A safe neighborhood that’s close to stores and restaurants
✓ A unit with a washer and dryer, air conditioning, a dishwasher, sound-proofed

walls, and the option to have a pet
✓ Services that could be potential differentiators: Part-time concierge, delivery
of food/packages to their door, dog-walking, garbage/recycling pick-up,
security system
✓ Community amenities that could be potential differentiators: High-speed
internet, private parking, pool, fitness center, well-kept outdoor space (e.g.
community garden, designated pet area), storage space, “healthy building”
features (e.g. enhanced ventilation, sanitization of shared spaces), opportunities
to get to know their neighbors (e.g. online bulletin board, resident events)
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The Technologies Renters Expect

As of 2022, 83% of renters are comfortable taking care of at least some tasks online—most
often making payments, communicating with your team, signing their lease, and submitting
maintenance requests. Renters’ level of comfort with technology has continued to rise
dramatically with each year of the pandemic: Within 2021 alone, the number of renters who
elected to complete some or all of their rental processes online rose by 12 percentage
points. This includes smaller gains of 7 points among young adults, who have long
expressed enthusiasm about these technologies; as well as large gains of 19 points among
middle-aged adults, and 13 points among older adults. It’s noteworthy that a majority of
renters of all ages now expect their property management company to provide options for
completing a range of transactions online.
6 Tools That Renters Expect Their PM to Provide
MONEY-CHECK-ALT Electronic payments SCREWDRIVER-WRENCH Online maintenance ticketing
Email & text Reporting of on-time

COMMENT-ALT communications LIST-DOTS payments to credit bureaus
🖹 Electronic leasing Online utility setup & billing
The Tools with the Largest Gains in Interest from Renters in 2022
〉 Electronic leasing: +16 〉 Utility setup & billing: +5 points
percentage points 〉 Maintenance ticketing: +4 points
〉 Electronic payments: +11 points 〉 Self-showings: +4 points
〉 Virtual showings: +7 points 〉 Rental listings: +4 points
IN RENTERS' WORDS Their Desire for Technology from Their PM
Invest in an online portal for both electronic Be open-minded about using technology for
payments and maintenance requests. I always processes if you haven’t already started using
worry my bank won’t get the check through the it. It makes things easier for your tenants and
mail on time, and it can feel like you’re bothering yourself once you figure it out.
somebody to text maintenance requests. (SINGLE-FAMILY RENTER IN SALT LAKE CITY, UT)
Additionally, texting requests just seems less

professional. If you want tenants to let you know
about issues before they become critical, you
should make reporting less personal.
(SINGLE-FAMILY RENTER IN SPRINGFIELD, MO)
HOW RENTERS PREFER TO MAKE PAYMENTS

Since 2021, the number of renters who say they’d prefer to pay their rent electronically grew
by an enormous 26 percentage points. The largest gains in interest occurred within the
following payment types:
Venmo, PayPal, Zelle & similar payment

EXCHANGE-ALT tools: +9 percentage points
MONEY-CHECK-ALT Electronic bank transfer & ACH: +9 points
💳 Credit cards: +8 points
In addition, for the first time in 2022, a majority of renters reported that they already pay
their rent electronically. This is a sign of not only the increasing appeal of online payment
methods to renters, but also their increased adoption among property managers and
landlords since the pandemic began.
RENTERS' CURRENT VS. PREFERRED METHOD OF PAYING RENT
Current Method Preferred Method

Digital Methods (Total) 55% 76%
Electronic bank transfer/ACH 30% 32%
Electronic payments (e.g. Zelle, 12% 19%
PayPal, Venmo)
Debit card 9% 12%
Credit card 4% 13%
Physical Methods (Total) 46% 24%
Check 26% 13%
Cash 11% 8%
Money order or cashier’s check 8% 3%
IN RENTERS' WORDS How They Want to Pay Rent
Electronic payments are a must. It is vastly I would like to be able to pay rent electronically
better than handling paper checks for all from my bank account [and] report my on-time
parties involved. payments to credit bureaus.
(MULTIFAMILY RENTER IN BOSTON, MA) (MULTIFAMILY RENTER IN ROANOKE, VA)
Set Up Renters
Insurance
1 2 3

$1,500.00
POLICY ABOUT YOU PAYMENT
Payment Amount
$13.75 start date
/mo 8/20/22
PURCHASE POLICY
Accounts Receivable $570.00
Balance $570.00
Rent Income $380.00

Balance $380.00
226 Main Street Late Fee Income $50.00

Balance $50.00
LISTING DETAILS
Select account to $500.00

allocate amount Balance $500.00
POST LISTING
+ Add another account
HOW TO DELIVER THE FEATURES & INFORMATION RENTERS WANT

WITHOUT SLOWING YOU DOWN
The right property management software will allow your residents to take care of
all of their needs on their own schedule, without adding unnecessary tasks to your
team’s plate. Give renters access to all of the features they want in one central
location, including:
Online payments Renters insurance
Maintenance request Document signing,

tracking sharing and storage
Text and email Online rental listings

communications and applications
Learn how Buildium’s simple, unified platform can help you to take control of your portfolio,
your business, and your life: buildium.com/features
Learn how Propertyware’s open and customizable platform can enable you to reach and
exceed your business goals: propertyware.com/rental-property-management-software
TABLE OF CONTENTS
Introduction
with Residents
| TOC 56
IN RENTERS' WORDS How They’d Like to Get in Touch with You
[Please provide] email communication so I'm not Always have multiple ways for residents to get in
constrained by office hours for phone calls. contact with you.
(MULTIFAMILY RENTER IN NEW YORK, NY) (MULTIFAMILY RENTER IN LOUISVILLE, KY)
HOW RENTERS PREFER TO COMMUNICATE

Email has been the most widely-accepted method of contact among renters since 2018,
and is how most young and older adults still prefer to be contacted. However, openness
to communicating with their property manager via text message has increased by eight
percentage points since 2021, and is now middle-aged adults’ preferred method of contact.
HOW RENTERS WANT TO BE CONTACTED
2022 2021
Email 49% 54%
Text message 46% 38%
Phone call 39% 43%
Online resident portal 15% 16%
In-person visit 15% 9%
Paper notice/mailed letter 12% 12%
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Social media 3% 3%
HOW RENTERS SEARCH FOR A RENTAL

Renters of all ages are increasingly turning to online rental listings when they’re looking
for a new place to live. This year, 43% of our respondents said that they look for available
properties on national rental listing sites, and the same number turn to the websites of local
rental communities and property management companies. Secondarily, renters of all ages
continue to ask for tips from people they know, illustrating the importance of referrals in
attracting new renters in the year to come.
HOW RENTERS SEARCH FOR A PLACE TO LIVE
National rental Social media/

listing sites 43% community groups 19%
Local PM/rental Local newspaper/
communities' sites 43% bulletin boards 15%
City-specific rental
Tips from friends 30% listing sites 13%
Real estate broker/
For Rent signs 27% leasing agent 12%
IN RENTERS' WORDS Their Tips on Your Properties' Online Presence
Have a nice, working site. Care about the Provide a complete selection of images of
reviews the property has in places like Google. the specific property on offer in the rental
Before I move anywhere, I always read the listing, a breakdown of costs (including rough
bad reviews and pay special attention to the estimates for any utilities), and a detailed
property’s response. and accurate description of the place and all
(MULTIFAMILY RENTER IN SEATTLE, WA) available amenities.
(MOBILE HOME RESIDENT IN SYRACUSE, NY)
Three-dimensional, interactive, immersive walk-

throughs of apartments are super helpful.
(MULTIFAMILY RENTER IN SAN JOSE, CA)
Introduction
with Residents
| TOC 58
Renters’ Advice for Property Managers
We asked renters to tell us the most impactful changes their property management
company could make to improve their rental experience. Here’s what they told us:
Show as much interest in residents’ satisfaction after they move in as before by

1
regularly asking whether there’s anything you can do to improve their experience.
It’s important to make clear that you take their feedback seriously, even if you don’t
have the resources to immediately act on every issue that they raise.
Set clear and consistent expectations from the get-go. Many of the residents we
2 surveyed told us that they expend considerable effort to respect the guidelines that
their property manager has set, and they try to find answers on their own to avoid
bothering them. However, guidelines that are unclear, incomplete, or inconsistently
enforced across the property can lead to frustration.
Provide options for taking care of standard rental processes. The vast majority
3
of renters now prefer to complete transactions online, but preferences vary when
it comes to the method they find most convenient and intuitive. We recommend
providing multiple options for paying rent (e.g. EBT, PayPal, and credit card) and
communicating with your team (e.g. resident portal, email, and text), and also having
an agent available by phone if they run into any trouble.
Be available during the hours when they’re home. Property management

4 offices tend to be open during the same hours when many renters are at work.
Consider providing a contact to whom renters can direct questions outside of
standard business hours; a maintenance contact center that can assist with
emergency repairs; and a resident portal where they can complete many processes
on their own.
Let them know you’ve received their message and when to expect a response.
5 Renters told us that they find it far easier to be patient in waiting for a solution if
they know that you’ve received their message, you’ve taken action on it, and you’ll
keep them updated on any next steps.
Proactively care for the property without being asked. From renters’ perspective,
6 the energy you devote to property upkeep demonstrates the degree to which you
and the owner care about the rental, both as an investment and as their home.
Consider conducting periodic inspections where you can address any minor issues
around the property, benefiting both residents and rental owners.
TABLE OF CONTENTS
Renters’ Advice for Property Managers
Don’t skip inspections and cleanings between tenants. A unit that doesn’t make a
7
great first impression, or that immediately has issues needing to be addressed, can
leave renters worried that they won’t have a good experience in the property; and
it also sets poor expectations about the level of care you expect them to take while
they live there.
Reach out in advance if you need them to be available, or if major work is

8
being done. Renters with busy schedules appreciate not having to scramble to
accommodate last-minute visits or notifications that they won’t have access to Wi-Fi,
water, or other necessities. They appreciate it if you can provide advance notice
or flexibility on timing.
They want to feel like renting is a little more rewarding. Programs like rent
9
reporting to credit bureaus, or rewards for long-term residents who always pay on
time, can help incentivize consistent payments. They may also motivate residents to
continue renting from you over a competing property.
Your empathy matters more than you might realize. Unlike customers of any other
10 kind of business, renters’ daily lives take place inside the properties you manage;
and it matters to them that you keep this in mind when communicating with them.
They want to know that you see them as more than the rent payments they
make each month.
It’s been a hard few years for renters, rental owners, and property managers alike.
Negative headlines about real estate investors have proliferated during the pandemic,
fueling feelings of opposition between renters and the companies that own and manage the
rentals they call home. Perhaps, the current moment presents an opportunity for customer-
service-focused property management companies to foster feelings of trust, empathy,
and kindness—traveling in both directions—within these relationships once again. As one
renter put it: “To stand out, prove you care about your residents, and people will spread
your good reputation.”
TABLE OF CONTENTS
Learn how you can retain your best residents

and improve the appeal of your properties in
our 2022 Renters' Reports.
DOWNLOAD THE REPORT 〉 DOWNLOAD THE REPORT 〉
FOOTNOTES:
1 "Single-Family Annual Rent Growth Off to a Fast Start in 2022," CoreLogic, https://www.corelogic.com/
intelligence/single-family-annual-rent-growth-off-to-a-fast-start-in-2022, (March 15, 2022)
2 "The State of the Nation's Housing 2022," Joint Center for Housing Studies of Harvard University, https://
www.jchs.harvard.edu/state-nations-housing-2022, (June 22, 2022)
3 "Renters Finally See Market Starting to Cool After Record Growth," The Wall Street Journal, https://www.wsj.
com/articles/apartment-rents-begin-tapering-off-after-record-growth-11659301974, (August 1, 2022)
4 "2022 Market-Rate Apartment Affordability Report," RealPage, https://s.realpage.com/wp-content/uploads/

sites/20/2022/07/RealPage-Affordability-Study-1.pdf, (July 20, 2022)
5 "Real Earnings Summary," U.S. Bureau of Labor Statistics, https://www.bls.gov/news.release/realer.nr0.htm,

(July 13, 2022)
6 "St. Paul's Rent-Control Backfire," The Wall Street Journal, https://www.wsj.com/articles/st-paul-rent-control-

backfire-minnesota-twin-cities-permits-building-apartments-11657472375, (July 11, 2022)
TABLE OF CONTENTS
Takeaways | 2023 State of the Property Management
Introduction
Industry Report
| TOC 61
SECTION 5
Takeaways
Third-party property management companies are ready to double down on
1
expansion, primarily by attracting new clients and supporting current clients’
growth. After nearly three years of directing their energy toward shorter-term,
pandemic-induced challenges, companies are ready to shift their gaze back
to their long-term health. Their outlook remains bright despite headwinds like
increased property sales and slower property acquisitions among their clients
due to the hot housing market.
Companies are searching for new revenue streams that add value for
2
customers. In a high-inflation, low-margin environment, property management
companies are focused on increasing the revenue that their businesses and
portfolios generate. But in addition to raising prices—which many companies plan
to do in the next year—they’re on the hunt for revenue-generating offerings that
will add tangible value to renters’ and owners’ experiences with their business.
Rental owners’ demand for property managers’ expertise remains elevated. As

3
the complexity and expense of operating rental properties has increased, more
small-portfolio owners have turned to professional property managers for help. In
spite of the temptation to manage their properties themselves to keep costs low,
owners continue to see the value in property management services—particularly
when it comes to collections, maintenance/repairs, leasing, compliance, local
market expertise, and financial reporting.
Competition has increased as more real estate companies enter property

4
management. Markets with strong rent growth and rental demand have seen
new property management companies entering the game, real estate brokerages
expanding their services, national firms acquiring smaller companies, and
institutional investors moving in. As small and mid-sized companies look to grow,
they’re finding that technology is the key to doing more with less; enabling them
to provide the personalized service that’s their strongest selling point, even as
the labor shortage prevents their teams from scaling as quickly as they're adding
new doors.
Rental affordability is being recognized as the most critical issue facing our
5
industry. Though the shortage of affordable housing isn’t new, the impact on
renters has vastly increased during the pandemic, with double-digit rent growth
and inflation neutralizing short-term increases in renters’ wages. Property
managers are feeling the strain of trying to balance rent prices that residents can
TABLE OF CONTENTS
afford with prices that cover owners’ rising costs; and industry organizations are
increasingly focused on the dire need for more housing to be built at affordable
price points.
About Our Respondents 62
APPENDIX:
About Our Respondents

OUR PROPERTY MANAGER RESPONDENTS
We conducted our eighth annual Industry Survey of property management
professionals in June 2022. Our 1,668 participants were drawn from the Buildium,
NARPM, Propertyware, and All Property Management databases.
THE PROPERTY TYPES THEIR COMPANY MANAGES
19% 12%
76 % 65 % 46 % 37 %
SINGLE-FAMILY SMALL MULTIFAMILY APARTMENT APARTMENT APARTMENT MOBILE HOMES/

RENTALS: RENTALS: BUILDINGS: BUILDINGS: BUILDINGS: OTHER PROPERTY
1 unit 2–4 units 5–10 units 11–50 units >50 units TYPES
THE NUMBER OF UNITS THEIR COMPANY MANAGES WHOSE PROPERTIES THEIR COMPANY MANAGES
22% 28%
31%
41%
10%
7%
10% 32%
7%
7%
2 4%
%
Mix of own &

1-20 601-1000 others' properties
21-40 1001-2500 Other investors'
41-100 properties
2501-5000
TABLE OF CONTENTS
101-400 >5000 Own investment

401-600 properties
THE PRIMARY METRO AREA WHERE THE NUMBER OF METRO AREAS WHERE
THEIR COMPANY OPERATES THEIR COMPANY OPERATES
1 2%
Atlanta, GA
6%
2 Los Angeles, CA
3 Chicago, IL
1
2-5
4 New York, NY
39%
54% 6-10
>10
5 Houston, TX
6 Miami, FL
7 Dallas, TX
8 Phoenix, AZ
THE RESIDENTIAL PROPERTY TYPES THEIR
9 San Antonio, TX COMPANY MANAGES
10 Boston, MA Community associations 25%

Subsidized housing 23%
Luxury rentals 21%
Short-term rentals 14%
Student housing 13%
Senior housing 6%
Military housing 3%
Non-specialized housing 52%
TABLE OF CONTENTS
THE SIZE OF THEIR TEAM (ALL FULL-TIME TOP 10 JOB TITLES AMONG
EMPLOYEES, INCLUDING THEMSELVES) OUR RESPONDENTS
19% 1
Property
manager 33%
2
3-5
Company
owner/CEO 21%
15% 6-10
29% 11-20
Accountant/
bookkeeper 9%
5% 21-30
31-40
Real estate
broker 7%
2%
41-50
2%
3% >50
Office
manager 7%
11%
15% Operations
manager 7%
Leasing
manager 4%
HOW MANY OFFICE LOCATIONS THEIR
COMPANY HAS
Real estate
investor 3%
Maintenance
manager 2%
Real estate
agent 2%
THE PROPERTY MANAGEMENT SOFTWARE
19% 60% 18% 2% 1% 1%

THEIR COMPANY USES
0 1 2-5 6-10 11-20 >20
2%
58% Buildium
Propertyware
24% Another software

brand
None
17%
TABLE OF CONTENTS
SEE SECTION 2 FOR MORE INFORMATION ON OUR PROPERTY MANAGER RESPONDENTS

About Introduction
Our Respondents
| TOC 65
IN PMs' WORDS The Value of NARPM Membership
[It's] great to have a professional organization

with [a] respected code of ethics, education to
raise the level of property management, and
RATES OF NARPM MEMBERSHIP AMONG [a] voice in the real estate industry. [It's a] big
OUR RESPONDENTS
selling feature when interviewing new clients.
National, state, (COMPANY OWNER IN PHOENIX, AZ)
24 % or local NARPM
member
The communication, education, news, and
announcements are essential for us. We also
76 % enjoy the case studies and questions posed by
Not currently members that create good discussions.
a NARPM
(COMPANY OWNER IN AUGUSTA, GA)
member
Best investment in making my business more

productive and profitable.
Learn more about the benefits of
becoming a member of the National (COMPANY OWNER IN DALLAS, TX)
Association of Residential Property

TABLE OF CONTENTS
Managers: NARPM.ORG/JOIN
OUR RENTAL OWNER RESPONDENTS THE TOP 10 METRO AREAS WHERE

THEY OWN RENTAL PROPERTY
We conducted our eighth annual survey of small-portfolio rental
property owners during the first quarter of 2022, recruiting our 1 Los Angeles, CA
349 participants from the All Property Management database.
2 Orlando, FL
3 Phoenix, AZ
THE NUMBER OF RENTAL UNITS THEY OWN
4 Denver, CO
4% 3
%
4% 5 Chicago, IL
1 6 San Francisco, CA
12 2-4
40%
%
5-10 7 San Diego, CA

11-20
21-40 8 Dallas, TX
>40
36% 9 Riverside, CA
10 Albuquerque, NM
THE RENTAL PROPERTY TYPES THEY OWN
67% 40% 10% 7% 2% 3%

SINGLE-FAMILY SMALL MULTIFAMILY APARTMENT APARTMENT APARTMENT MOBILE HOMES/
RENTALS: RENTALS: BUILDINGS: BUILDINGS: BUILDINGS: OTHER PROPERTY
1 unit 2–4 units 5–10 units 11–50 units >50 units TYPES
TABLE OF CONTENTS
RENTAL OWNERS' HOUSEHOLD FOR HOW MANY YEARS THEY'VE

INCOME IN 2021 OWNED RENTAL PROPERTY
26% 8%
$50–$99k 23 %
21%
$100–149k
19%
15% 17% >$200k 28%
$150–199k
<$50k
18%
8%
17%
1–2 11–15
3–5 16–20
6–10 >20
WHAT RENTAL OWNERS DO FOR WORK
Have a job unrelated

to their properties 47%
Retired 36%
Consider themselves
a landlord 17%
Consider themselves
an investor 11%
Other 5%
TABLE OF CONTENTS
SEE SECTION 3 FOR MORE INFORMATION ON OUR RENTAL OWNER RESPONDENTS

OUR RENTER RESPONDENTS

We conducted our seventh annual survey of U.S. adults who rent their homes during
the second quarter of 2022, recruiting our 1,569 respondents through SurveyMonkey.
THE PROPERTY TYPES RENTERS LIVE IN
21% 5% Single-family rental in Apartment building:

a community of mostly 11–50 units
homeowners
Apartment building:
13% Single-family rental >50 units
23% in a community of
mostly renters Mobile home/
other property type
Small multifamily
11% rental: 2–4 units
Apartment building:
10% 5–10 units
17%
5%
4%
8%
42%
RENTERS' TENURE IN THEIR
CURRENT PROPERTY
16%
<2 years 11–15 years
3–5 years 16–20 years
TABLE OF CONTENTS
6–10 years >20 years
26%
TOP 10 METRO AREAS WHERE OUR WHY TODAY'S RESIDENTS RENT THEIR HOMES
RESPONDENTS LIVE
1 Finances prevent
New York, NY
them from buying
a home for now
47%
2 Los Angeles, CA
Current rental meets
3 Chicago, IL
their needs/Don't feel
like moving
28%
Don't want the
4 Boston, MA responsibility of
owning a home
21%
5 San Francisco, CA
Like the flexibility
that renting gives them 18%
6 Phoenix, AZ
Allows them to live
7 Miami, FL in a central
neighborhood
14%
8 Houston, TX Like the amenities/
community they
have access to
12%
9 Dallas, TX
10 Seattle, WA HOW MANY PEOPLE LIVE

IN RENTERS' HOUSEHOLDS
27%
HOW OLD OUR RESPONDENTS ARE

33%
Generation Z: Born in 1997 or later 11%
Millennials: Born in 1981–1996 30%
Generation X: Born in 1965–1980 32%
16%
Baby Boomers: Born in 1946–1964 24%
Silent Generation: Born in 1945 4%
13%
or earlier
Note: Middle-aged and older renters are more

prevalent within our sample than within the 6%
population overall to allow us to collect statistically
significant results for every age group.
5%
TABLE OF CONTENTS
SEE SECTION 4 FOR MORE INFORMATION ON OUR RENTER RESPONDENTS

BUILDIUM®
Buildium, a RealPage company, delivers an industry-leading, cloud-based
property management platform that lets managers of residential rental and
association properties take control of their business, whether in the office or
fully remote. Backed by expert advice and relentless support, Buildium outfits
property management businesses with intuitive software that’s the perfect
balance of simplicity and sophistication. Buildium services customers in more
than 50 countries, totaling over 2 million residential units under management.
For more information, visit buildium.com. | Connect with us: FACEBOOK-SQUARE LINKEDIN TWITTER-SQUARE INSTAGRAM-SQUARE
VISIT REQUEST
BUILDIUM.COM A DEMO
READ CONTACT US
OUR BLOG SALES@BUILDIUM.COM
PROPERTYWARE®
Propertyware, a RealPage company, is a powerful, customizable, and open
software solution designed to help single-family property management companies
run their business their way. Propertyware provides unmatched customization, an
open API for two-way data exchange, portfolio-level accounting and reporting,
and the industry’s ideal solution for multi-regional expansion and growth, allowing
managers to easily monitor local operations and view holistic reporting.
For more information, visit propertyware.com | Connect with us: LINKEDIN TWITTER-SQUARE
THE NATIONAL ASSOCIATION OF RESIDENTIAL

PROPERTY MANAGERS®
Established in 1988, NARPM is the only national organization focused primarily on
residential property management. NARPM is committed to bringing the highest
level of professionalism and ethics to the property management profession.
Education is a fundamental component of the organization, with a growing number
of classes and materials being developed for members. In addition to the many
educational opportunities at local, state, and national conferences, NARPM has
developed a core of courses that are required to earn NARPM designations.
Learn more about joining the organization on their website: narpm.org/join

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TABLE OF CONTENTS

01 INTRODUCTION 1 04 PROPERTY MANAGERS’ EVOLVING

The Challenge of Rental Affordability

02 HOW PROPERTY MANAGEMENT

− Trends in Renters’ Financial Health 38

− Renters’ Plans to Move or Stay Put 48

03 PROPERTY MANAGERS’ EVOLVING

− The Increase in Investors Within − How Renters Prefer to Communicate 56

− The Owners Who Don’t Plan to Grow 14

− The Owners Who Plan to Grow 16

− What Rental Owners Expect from 06 ABOUT OUR SURVEY RESPONDENTS 62

Their Property Manager 20

− The Technologies Owners Expect 22

− Maintenance & Repairs 25

− Leasing Properties & Marketing Vacancies 27

− Rent Collection & Pricing 29

− Regulatory Guidance & Legal Advice 31

− Financial Reporting & Accounting 32

This conflict is at the heart of each of the issues that

In our survey, we asked 1,700 industry professionals to

Low margins: The cost of operating a

labor shortages, motivating owners to raise

The strategies that property

the Property Management Industry Report!

How Property Management

Trends in Property Managers’ Portfolio Growth

PROPERTY MANAGERS' RANKED PRIORITIES FOR 2023*

Rank YoY change

More property management companies have reported portfolio growth in

PROPERTY MANAGERS' PORTFOLIO GROWTH OVER THE PREVIOUS 2 YEARS*

2022 2021 2020 2019 2018 2017

Grew slightly 35% 39% 42% 37% 39% 41%

Shrank 9% 11% 9% 11% 10% 6%

More property management companies plan to expand their portfolios in the

PROPERTY MANAGERS' EXPECTED PORTFOLIO

Expect it to grow significantly

54% Expect it to stay the same

PROPERTY MANAGERS' PLAN TO EXPAND THEIR PORTFOLIOS

Trends in Property Managers’ Revenue Growth

PROPERTY MANAGERS' REVENUE GROWTH OVER THE PREVIOUS 2 YEARS*

2022 2021 2020 2019 2018 2017

Expect it to increase significantly

PROPERTY MANAGERS' PLAN TO INCREASE THEIR REVENUE

HOW PROPERTY MANAGERS PLAN TO INCREASE

The Services That PMs Offer, That Owners Want,

PMs Who Owners Who PMs Who Find

Rent/fee collection 94% 83% 67%

 Maintenance/repairs 94% 75% 24%

  Construction/renovation 58% 23% 19%

Legal advice 12% 25% 8%

 Property inspections 88% 66% 7%

Outdoor services 68% 23% 7%

Cleaning 76% 42% 7%

Evictions 83% 73% 3%

How Property Management Companies Are

The Top Technologies in Use Among Property Managers in 2022

✓ Resident portals ✓ Electronic rental applications

✓ Client portals ✓ Online maintenance ticketing

✓ Electronic payments ✓ Electronic leasing

✓ Accounting tools ✓ Property inspection tools

Maintenance/repairs 94% 75% 24%

Construction/renovation 58% 23% 19%

Property inspections 88% 66% 7%