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The Future of Every Property Management Company in Dallas: 2024 Trends

Image of young women using VR goggles to take a tour posted by a property management company in Dallas.

As the housing market turmoil of 2023 continues into the new year, every multifamily property management company will be faced with new challenges. Home ownership is unaffordable, pushing many new renters toward multifamily and single-family rental properties.

While this seems great at first glance, it’s worth noting that property managers will need to meet some increasingly high expectations to remain competitive as more units in large markets are completed and become available.

2024 Multifamily Trends Forecast: What’s next for every property management company in Dallas

While many of these 2024 rental and real estate market trends are universal, the Dallas area multifamily market is unique in two key ways:

With those factors in mind, 2024 could be a roller coaster year for Dallas property management company professionals. Get ahead of, and monitor, the following trends to keep your occupancy rates up and attract the best renters.

Trend 1: Use a Data-Driven Property Management Company Approach

Your Task: Collect and analyze all the data.

To really understand how your property is performing, you need more data. Data tells a story that provides insight into a property’s desirability, so here’s what you need to be doing to collect more data:

  • Tenant satisfaction surveys that address maintenance schedules, amenities, rent rates, and any other possible data point for which you don’t have good intel.
  • New tenant and lost tenant surveys. Why are they moving in? Why are they leaving? You need to know.
  • Quarterly marketing ROI analysis. Are you marketing to the right people, in the right places? Has your target audience changed as demographics have shifted due to local market changes? Keep up or get left behind.

Trend 2: Renter Mobility on the Rise

Your Task: Understand local market migration trends.

Post-COVID, remote work has become a lasting reality that gives many people the freedom to work remotely. That means your available pool of renters is no longer tied to local employers; those workers may choose one of the growing secondary markets, while others who don’t work locally may be looking to move into your area.

Surveying large local employers to learn more about their remote work policies could help inform your marketing and give you a heads-up when you’re about to see a big change, such as an impending return to the office (RTO) policy or a move to permanent remote work.

Trend 3: Cybersecurity and Data Protection

Your Task: Use property management company software and payment platforms with advanced protections.

Since more and more of what we do as property managers includes moving sensitive personal and financial information through the web, we must protect that information from a growing cybersecurity threat. Every day we hear about another major data breach. Does the Mr. Cooper data breach ring a bell?

Don’t leave yourself open to becoming another cautionary tale like Mr. Cooper. Lock down your renters’ sensitive data.

Trend 4: AI, AR, and VR-Driven Property Marketing

Your Task: Find solutions that give prospects access to AI chatbots and enhanced virtual tours.

Your prospects most likely won’t show up to your manager’s office in person to tour an apartment. They expect to be able to take a virtual tour through each of the floor plans on your website, and enhancing your tours with augmented reality (AR) and virtual reality (VR) options will help you stay ahead of the competition.

If you’re a property manager looking to create VR and AR tours, here’s a step-by-step guide to help you get started:

  1. Determine your objectives: Identify why you want to incorporate VR and AR tours into your marketing strategy. Whether it is to attract more tenants, enhance brand visibility, or stand out from the competition, having a clear objective will guide your decision-making process.
  2. Research available technology: Evaluate the VR and AR tools and platforms available in the market. Look for software that suits your needs, offers user-friendly interfaces, and provides the features required to create engaging tours.
  3. Gather the necessary equipment: To create VR tours, you will need a 360-degree camera capable of capturing high-quality images and videos. Additionally, ensure you have a stable tripod, a microphone for audio, and a computer powerful enough to handle VR content rendering. Grab a ring light to address low-light areas while filming.
  4. Plan and capture the property: Choose the areas and features you want to highlight during the tour. Begin by capturing high-resolution, 360-degree photos and videos of each room or area. Pay attention to lighting, angles, and staging to showcase the property in the best possible way. While we hope it doesn’t have to be said…make sure your property is clean.
  5. Create a storyboard: Before diving into the editing process, create a storyboard to outline the flow and narrative of your VR or AR tour. This will help you organize the captured content and ensure a smooth and engaging experience for your viewers.
  6. Edit and enhance the content: Use VR and AR software to edit and enhance the captured content. This might include adding interactive elements, integrating features like hotspots, annotations, audio descriptions or closed captioning (TikTok style), and fine-tuning the visuals to create a seamless and immersive experience.
  7. Test and optimize: Once you have created a VR or AR tour, test it thoroughly on your website to ensure everything functions as intended. Fix any technical issues or bugs that might hinder the experience. Additionally, optimize the content to ensure fast loading times and compatibility across various devices and platforms, especially smartphones.
  8. Publish and promote: Once your tour is ready, decide on the platforms where you will host and distribute it. You need it on your website (that’s a given), but you should also upload it to popular virtual tour hosting platforms and real estate listing sites. Promote your tours through various channels, such as social media, email newsletters, and local Realtor email services.
  9. Gather user feedback: Encourage viewers to provide feedback on their experience with the VR and AR tours. Analyze the feedback to identify areas for improvement and continuously enhance the quality and effectiveness of your future tours.

Trend 5: The Housing Affordability Crisis Remains an Issue

Your Task: Deliver a rental experience that meets the needs of those priced out of the buying experience.

Home prices and historically high-interest rates are expected to normalize slowly throughout 2024, but many people are still priced out of the dream of home ownership. Like remote work, this is leading some to migrate to more affordable secondary markets. For those who choose to stay in Dallas, a great property management company can get on board with their dream and still keep rents and occupancy rates up:

  • Reach prospects through Realtors, who continue to help clients find great rental properties.
  • Jump on the MLS-style listings for apartments, led for now by Bright MLS and RentSpree. Get your property listed.
  • Offer credit-building options for renters who pay on time. For many would-be homeowners, their credit score needs work before they can buy. Help them remove that barrier to finally owning a home of their own by participating in Freddie Mac’s rental credit reporting partnership with Esusu. As a bonus, participating multifamily property investors can get help with closing costs from Freddie Mac on new property purchases.

The Bottom Line: 2024 Looks Like Work and Opportunity

It might not be pretty, but this year has a lot of opportunities for improvement and growth for rental properties and their management companies. Take a proactive look at what you’re delivering and how your property is preparing for what’s to come, and then make a plan to lead the Dallas rental market from the front of the pack. Class A Management can help, so reach out to learn more about our revolutionary Dallas rental property management company.

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Property Investment Opportunities in A Growing Industry

Property Investment Opportunities in A Growing Industry

The demand for multifamily living continues to increase. High demand is good news for those involved in investment property ownership and management. In addition to continued high occupancy, on a national level, industry experts predict the nation will need an additional 4.3 million multifamily units by the year 2035. The current demand for new multifamily units is 266 thousand per year just to meet demand. 

What does this mean for property investment opportunities in Texas? 

Texas property investment opportunities and industry overview

Texas is home to 16 major cities. Each of these cities has a unique local property investment market. The one thing they all have in common is their significant contributions to a heavy statewide industry. 

The multifamily housing industry in Texas currently represents:

  • 4 million residents
  • 2.27 million apartment homes
  • $8.3 billion contributed to the Texas economy

“Now is a great time for current investment property owners and those wishing to invest for the first time,” states Cathy Fontana, owner and CEO of Class A Management. “We closely monitor all aspects of the Texas investment property industry. New construction and community expansion projects are creating good opportunities to expand your investment.” 

Class A Management actively works with clients to positively leverage high industry demand to maximize investor returns. 

Find the information you need with Class A Management

To meet current industry demands, 47 thousand new units across Texas must enter the market. Dallas and Fort Worth markets need to contribute 19 thousand of those units to meet yearly local demand. 

For over four decades, our team of multifamily industry experts has continued to provide unparalleled service for both investors and residents. By closely watching industry and market trends and accurately interpreting relevant data, Class A Management skillfully manages your current investment holdings and presents opportunities for potential investment expansion. Our team makes assessments and conducts due diligence, providing you with the information you need to make investment decisions. Once you decide to expand your property investment portfolio, we will be with you through the whole acquisition process with our brokerage and development services, then provide productive property management. 

Contact us to discover all the data associated with the communities where you have investments, then discuss how this data helps identify the best investment opportunities for your local market. 

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3 Reasons Property Investment in Dallas has a Bright Future

Property investment in Dallas

What does the future hold when it comes to property investment and management? 

That’s the question that plagues investors and managers when markets become volatile like they are now. The real estate market outlook depends heavily on the state of the economy, inflation, interest rates, and market projections. 

The good news is, despite some contradictory predictions, the Dallas rental market continues to perform well, as rents and occupancy rates have hit record highs and have stabilized.

“The future of the Dallas rental market looks promising,” says the owner and CEO of Class A Management,  Cathy Fontana. “We’re seeing positive things for all our clients’ Dallas properties.” 

With more than 40 years of property investment and management experience in the local Dallas market, Fontana says she is confident about the future.

“Now is a great time to own and manage multifamily properties in this area.”

Here are the top reasons we’re optimistic about the future of property management and investing in Dallas and nearby areas.

Reason #1: Demand Remains High

It’s no surprise that demand is high. Dallas continues to adapt to the needs of current and potential residents. Even though the area ranks first in new construction, the vacancy rate continues to stay low. 

In addition to attracting new residents, 62 percent of 2022 residents chose to renew their lease. The continued trend of potential residents from other states, such as California, also contributes to high demand. So, why is this area so appealing? 

Here are some of the top reasons Dallas is attractive to potential renters: 

  • A robust job market
  • Highly rated schools
  • Favorable local tax laws
  • Easy access to various entertainment venues

An appealing environment with ample opportunities is great for residents, but how does this translate into high returns on property investment? 

Reason #2: Market Analysts Love the Dallas RE Investor Outlook

Data from 2022 investment property research speaks to a promising future. Market research gathers and analyzes data property managers and investors use to make informed decisions about where to place assets. An expert manager knows market trends and outcomes, and how to leverage these into property management opportunities that result in investor asset growth. 

Research numbers take the following data into account: 

  • Number of days vacant
  • Percent occupied by renters
  • Number of prospective renters competing
  • Percent of renters who renew their leases
  • Share of new apartments completed in 2022

The results are in, and they show good standing and great potential for the Dallas property management market. The Dallas occupancy rate reached its highest at 95 % during 2022 and currently sits at 92.4%, ranking the city first in occupancy rates. In addition to high occupancy, Dallas was ranked as the third most competitive market at the end of 2022. 

How does this compare to other markets? Dallas beat out Houston, San Antonio, and Austin when it comes to Texas metropolitan markets. These areas also ranked high, with occupancy rates sitting just above 90 percent. 

Knowing where your investments sit within a market is good for big-picture analysis. Still, to ensure overall investment success, consider other factors more personal to residents. 

Reason #3: Residents Choose to Rent in Dallas

Here are five factors going beyond basic supply and demand to show why Dallas residents are choosing to rent, keeping investment properties in high demand. 

  1. Builders are catching up: New construction is catching up from Covid-19 delays. The worst of the slowdown seems to be over, but there are still some issues with supply and labor. Even with a large amount of new construction in the area, occupancy is keeping pace with development. 
  2. Home ownership is too expensive: Home ownership continues to trend downward. As prices stay high and interest rates continue to rise, home ownership is proving too expensive for many. What is disheartening for home sellers is positive for real estate investors. The situation increases the potential rental pool and rental market competition, helping maintain and raise rents and occupancy rates.
  3. Would-be buyers are risk-averse: There is just the plain old truth that many people are just too fearful to own a home in a volatile economy. Renting is seen by many as the “safer” alternative to making such a sizable investment, raising the national average age of first-time home buyers to 36 years old. Expert predictions from the early fall of 2022 were that rents would continue to rise over the first half of 2023, causing concern about renters’ ability to afford price rates. In reality, multifamily rents either remained stable or went down
  4. Younger adults prefer renting: New graduates and young professionals continue to show a preference for renting. Studio apartments tend to see the highest price growth for rental rates. In response, more units are being shared among younger tenants as they learn to navigate life outside of a school environment.
  5. Community keeps occupancy rates high: Owners might feel pressured to change up the look of a property to attract renters to maintain occupancy. This isn’t the case. Many different demographics are looking for properties, including communities just like yours. Your marketing should focus on attracting the type of tenant you want by accentuating your property’s unique amenities, location, and community characteristics.

Class A Property Investment Services: Your Partner for Profitable Investing

Many real estate investors are searching for property investment and management services in Dallas. Whether you live locally or simply own an investment property in Dallas, you need a management company that knows this city and keeps up with the changing market. 

Class A Management actively manages over 2,400 units in the Dallas-Fort Worth Metroplex. Our team offers a comprehensive menu of management services to maximize your investment growth. From feasibility to property renewals, purchases to divestitures, and all the property management in between, Class A Management has the experience to guide you to the best market opportunities. 

Contact us to see how we can help keep your property at occupancy regardless of market conditions. With Class A, the future for your property is in good hands.