According to Statista, the forecasted revenue for property managers will exceed $48B by 2019. Although this is up from previous years, the revenue % growth has slowed down. As more downward pressure on rental rates begins to hit the major markets, this will begin to decrease property manager’s revenue potential.
Although there are various types of cloud based property management software that has made it easier for property managers to make more revenue and profit through rental pricing optimization and operational efficiencies, this same technology has also made it easier for smaller landlords to bypass property managers and self manage the properties on their own. Within the next 5 years, this may lead to a dramatic decrease in the amount of properties that are professionally managed for owners who own less than 10 rental units.
