Market trends will come and go, and this year – we’ve been following a lot of them.
The demand, the prices, and the activity in the Colorado Springs rental market have kept us busy. We’ve seen higher rental rates, low vacancy, and an increasing demand for well-maintained rental homes. The population in Colorado Springs has increased rapidly over the last 10 years. In fact, it’s increased by 15 percent since 2010. That’s delivered a large population of tenants into our market.
At Muldoon Associates, we work hard to stay up to date on all the industry trends and market shifts that will impact the properties our clients own. We pay attention to the competing properties on the market, the rental values that rise and fall, and the demands and wishes of the best residents we’re trying to place into your homes.
Our property management insights for 2024 are around technology, tenant demand, and remote work.
For us, it still comes down to the basics: property management knowledge and customer service. We’ll continue doing what we’ve always done best while we adapt to the needs and demands of the market and our owners and our tenants.
Here are some of the anticipated trends that we find most interesting as Colorado Springs and Pueblo property managers.
Colorado Springs Rental Values
While rents are peaking and even dropping elsewhere, they’re still rising in Colorado Springs.
The jumps are not as dramatic as they were a year ago, but you shouldn’t have to lower the asking price for your rental properties quite yet. Recent statistics show that between January and July of 2023, the average rent in Colorado Springs is 0.6% higher.
While no one has a crystal ball or special psychic powers, we do expect that rents will continue to be high in our market. You should prepare for stabilizing rents (how much higher could they reasonably go?), but even as they settle, those rental values will remain high enough that you can increase what you earn every time you sign a lease renewal.
As we head towards 2024, we expect to continue seeing well-qualified residents who are financially comfortable and more than prepared to continue paying higher rental values. Their expectations will also be higher, so you’ll have to be prepared for that. Think about what you can offer that attracts good tenants and justifies a higher rent.
Anticipating Market Shifts
Earlier in the year, there was a lot of talk about another recession.
So many experts were sure it was coming. That doesn’t look as likely, now. We expect that everything will remain strong, and investors will remain profitable. It’s easy to look at the real estate market on a huge, general, and macroeconomic level, but it’s not really a good idea to make predictions and identify trends without paring it down to the part of the market that impacts you and your investments.
Real estate is extremely local, and whatever you’re hearing nationally does not necessarily apply to Colorado Springs. There will always be a set of nationwide trends and predictions that are hard to ignore, but it’s important for investors to focus on their local markets and the nuances that come with them. This is why a relationship with your Colorado Springs or Pueblo property management partner is so important.
Technology Trends: Pueblo Property Management and A.I.
You might have noticed that the latest trends everyone is talking about involve ChatGPT and other similar technologies. You may have noticed that Google is now offering to write your emails for you. Artificial intelligence (A.I.) is the source of a lot of contention. Some people love it. Others hate it. Many of us wonder what it’s really capable of.
As property managers, we know that it can help us do our jobs and serve our owners and tenants more efficiently. A.I. has improved systems and saved time in very non-invasive ways.
A.I. is not going to replace your live property manager. We promise. People still want a human connection, and they always will, especially when it comes to property. Homes are emotional. Investing is complicated. We need to have conversations and interpersonal interaction. That will never go away.
As we think about the future and tech trends in our industry for 2024, we can tell you that A.I. will likely be used more consistently by property managers, real estate agents, leasing agents, and even vendors and contractors. There’s a lot it can do to help with more automated functions.
The artificial intelligence we use in property management can quickly process large amounts of data, and that’s going to help us with pricing your property more accurately, marketing it more strategically, and screening your tenants more thoroughly and consistently. Costs are often minimized with A.I. while efficiency is increased, and this adds to more satisfaction among our owners and our team members. Rent collection, tenant screening, and other easily delegated tasks will leave our property managers more time to fulfill their more professional endeavors.
Technology Trends: Make Your Property Desirable with Smart Home Technology
When we’re talking about technology, it’s not just A.I. taking the industry by storm. Your tenants are looking for rental homes that will allow them as much convenience and integration as possible.
They want smart home technology.
This is a huge trend that we tell all of our investor and landlord clients to watch for: tenants wanting and needing extra tech in the homes that they rent.
Colorado Springs rental homes will need to offer more smart home technology in the next year. In fact, property managers in our area need to be prepared for high demand from tenants. The remote working trend means that tenants can live anywhere they want. They can come to Colorado Springs and enjoy our high quality of life and low cost of living even while keeping their highly-paid jobs from other, more expensive cities. Those remote-working tenants will want a home with good technology.
Our job as your property manager is to help you understand what’s worth your investment, because this tech isn’t cheap.
Residents are currently using and enjoying video doorbells, smart thermostats, and apps that allow them to turn on lights and lock doors remotely.
The appreciation high-quality tenants have for smart home technology will only grow, and the property owners and managers who can provide it will have an easier time attracting and retaining high-quality residents.
There are additional benefits to installing smart home technology in your investment properties.
- By remotely managing various systems within properties, such as HVAC, lighting, and security, energy costs can be reduced for property owners and for tenants, even while efficiency and productivity are increased.
- Tenants will appreciate having greater control and convenience. They’ll respond favorably to rental homes offering smart home technology.
- Smart locks allow remote access, which is both secure and convenient. The smart locks or digital keypads allow for easy property showings, and they also allow maintenance workers to get inside the property without someone running over there to meet them or make another key.
When you’re willing to invest in these technologies for your rental property, you’ll find you have access to a variety of advantages, from efficient leasing and managing and maintaining your property to cost-savings to increased tenant retention and higher rental values.
Goals for 2024: Creating Meaningful Customer Experiences
There has been a long march towards better customer service over the last few years, and most of us are doing it well. As we journey into 2024, we’re going to have more time to focus on customer experience thanks to technology and A.I. We’re going to be busier working with tenants and owners. That means better relationships, deeper communication, and an understanding of what people really want from us.
Good tenant experiences will lead to better retention rates, on-time rent collection, and better tenancy for everyone. Fewer disputes and legal challenges. Easier lease negotiations.
We expect that serving tenants and treating them like valuable customers will only become more important. Landlords and property managers who are willing to invest in residents will find those investments to be worth their resources.
Here’s what a good property management-driven customer experience looks like:
- Targeted, strategic advertising
- More objective resident screening
- A commitment to creating an enjoyable resident experience
These are the things that our property management team will be focused on in 2024, to deliver better experiences for owners and residents.
Customer service is always evolving. It means something different now than it did 10 years ago or even one year ago. We know that we’ll always meet and exceed the needs of our customers by providing outstanding and responsive maintenance, listening actively, providing transparent financials and accounting statements, and following all of the local, state, and federal rental laws. Our owners and our tenants are happy to be working with us. Whatever trends come along in 2024, that’s always our goal.
We’ve been talking about some of the most interesting and exciting trends that we see for the property management industry as a whole and the Colorado Springs rental market in particular for 2024. When you’re looking for a professional property management partner in our area, make sure you’re choosing a partner who understands and leads the industry.
For help with Colorado Springs and Pueblo property management, please contact us at Muldoon Associates.
