Like many small property managers, you probably want to grow your business. But how do you go about it when you have limited resources for marketing, hiring staff, adding new services, etc.?
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Start Your TrialThe key is to prioritize growth strategies that don’t break the bank but still deliver big returns. That means staying on top of industry trends and knowing where the real opportunities lie—all covered in the 2025 Property Management Industry Report.
Every year, we survey property management professionals, rental owners, and renters to get the freshest insights on the industry. We’ve pulled out the top six takeaways from our latest report, tailored specifically for small property managers looking to stay ahead.
Fact #1: Portfolio Growth Is Slowing, But Still a Top Priority
Portfolio growth has moderated compared to previous years but remains the top priority for property managers, who plan to actively recruit new clients or encourage current clients to acquire new properties.
For the seventh consecutive year, portfolio growth tops the list of third-party property management companies’ priorities, with 91% planning to expand their portfolios over the next two years. However, the pace of growth has slowed since 2023, with a majority of businesses planning to expand their portfolios by 25% or less over the next two years.
When asked how they plan to grow their portfolios moving forward, 78% of property management companies said actively recruiting new clients and 49% said encouraging current clients to acquire new properties.
For small property managers, finding new customers can be challenging in a competitive market. However, cultivating strong relationships with existing clients and encouraging them to expand can be a more cost-effective way to add doors to your portfolio—particularly in a market where more rental owners may be interested in acquiring new properties in comparison with the recent past.
Fact #2: Virtual Assistants and Remote Workers on the Rise
As labor costs continue to rise, many property managers are turning to overseas virtual assistants and remote workers to expand their business.
Over the last year, staffing jumped five positions on property managers’ list of priorities. Many cite the challenge of hiring and retaining workers in a competitive labor market, with 58% of respondents reporting an increase in labor costs for full-time employees.
One way property management companies are adapting is by hiring virtual or remote staff. This saves (even eliminates) the need for office space and lets you select from a wider talent pool, including areas with lower labor costs.
As a small property manager, hiring a part-time virtual assistant or remote worker can be a great way to expand your staff at a relatively low cost.
Fact #3: Tenant Quality Is Property Managers’ Top Concern
Finding financially stable tenants is getting harder as rent growth outpaces wages, causing property management companies to prioritize tenant screening.
In 2024, tenant quality emerged as the #1 concern for property management companies. This comes as U.S. renters’ financial health has declined steadily. Between 2001 and 2022, for example, rents rose by 21%—while renters’ incomes rose by just 2%.
As a result, cost-burdened renter households are at an all-time high, with many renters reporting that they’ve been unable to pay all of their bills on time and in full over the last year.
This can make finding quality tenants (while keeping rents competitive) more difficult. However, by rigorously screening applicants, you can reduce turnover and help prevent costly evictions. Moreover, thorough tenant background screening ranks among the top services that owners want from a property management company.
Did you know? Buildium’s software can automate rental history verification, automatically sending survey forms to applicants and displaying their responses. Buildium’s identity verification and fake reference detection features are powered by TransUnion®, one of the three accepted nationwide providers of credit reports, so you can gain peace of mind knowing that previous landlords reported by applicants aren’t fraudulent.
Fact #4: Rental Owners and Tenants Want More Tech
More and more rental owners and tenants want to do business with property management companies online, with exceptions for some processes such as important communication and property tours.
The vast majority of rental owners (99%) want to do business with their property management company online at least some of the time. The same goes for renters—88% of them would like to complete at least some rental processes online, a 17-point increase since 2021.
By automating the more run-of-the-mill, time-consuming processes, property managers can devote their attention to more important interactions that require a human touch.
Small property managers should find the right balance between tech and in-person interaction. For instance, the majority of rental owners want their property management companies to handle payments electronically, and renters prefer to complete most processes on their smartphone, with the exception of applying for rentals and signing up for renters insurance.
Fact #5: Maintenance Costs Are Rising
Property management companies see work order management software as the main opportunity for improving property maintenance, a top concern among rental owners and tenants.
For 77% of PMCs, vendor and contractor labor costs have gone up over the last year, exacerbated by the rising cost of materials and supplies. This helps explain why maintenance was property managers’ second-greatest challenge in 2024. It was also the #1 source of stress for rental owners and among their top reasons for hiring property managers.
As a small property manager, you can help ease these challenges by focusing on regular preventative maintenance—or addressing issues before they turn into more costly repairs.
Consider using work order management software to accept and track maintenance requests. This not only streamlines the maintenance process but improves the experience for tenants, many of whom expect landlords to address maintenance issues quickly.
Fact #6: Customer Service Is a Pressing Priority for Rental Owners
Great customer service is the top quality rental owners look for in a property management company.
Of the rental owners we surveyed, 57% say that best-in-class customer service is their top consideration when choosing a PMC. The next-highest consideration was reporting and transparency. Many rental owners prioritize finding a company that regularly shares financial reports, profit/loss statements, and property insights.
In other words, if you don’t provide quality customer service—including regular and transparent reporting—it’ll be harder to find and retain new clients. However, small property managers have a natural advantage here. With fewer customers to manage, you can give more attention to each. Regular communication, clear financial reporting, and proactive updates can go a long way in strengthening client relationships and differentiating yourself from larger competitors.
Furthermore, in today’s tight market where many owners are keeping a close eye on their profit margins, updating rental owners—on the good and bad—is more important than ever.
Take Your Property Management Business to the Next Level
Growing your property management business doesn’t happen overnight—it takes time, strategy, and the right moves. But by staying ahead of the game and tapping into these trends, you can position yourself for long-term success. It’s all about making smart choices now to set yourself up for bigger wins down the road—like taking the first step with property management software.
Buildium’s software prioritizes efficiency and ease-of-use to help even the smallest property management companies play to their strengths and grow on their own terms. Sign up for Buildium’s no-risk, 14-day free trial to get full access to our property management software’s features, including tenant screening, accounting, maintenance requests, and much more. You don’t need a credit card, and it comes loaded with sample data so you can jump right in.
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