Australians’ passion for residential property investment, aided by supportive taxation policies plus an economic shift that’s pushed more people into rental accommodation, has helped drive growth in the nation’s property management industry.
Recent estimates have 4.5 million Australians, or 1.8 million households (about a quarter of all households), living in private rental accommodation – numbers that are expected to grow as housing affordability becomes an issue for a larger proportion of Australia’s population.
Yet the nation’s burgeoning private rental market isn’t the only reason the property management industry has grown. The regulatory complexity involved in managing tenants is, to some extent, becoming more onerous for time-poor and often novice property investors – many of whom live interstate from their investments.
At the same time, more real estate agency principals now appreciate the value of property management’s reliable and recurring income stream. Property management is no longer the poor cousin of an agency’s ‘glamourous’ sales department and, as such, it’s receiving a greater share of investment and resources.
The rental market’s growth has also presented opportunities for an increasing number of firms dedicated to providing property management services. With the industry’s evolution has come a push towards greater professionalism, accountability and efficiency, as agencies seek to build their rent rolls and investors seek improved service offerings.
Rapid technological innovation has assisted in this regard, giving today’s property managers an array of tools that allow them to effectively manage more properties with less effort.
The property management industry appears poised for even more growth against a backdrop of continuing investor demand for residential property, and an improved service offering driven by an increasingly competitive and innovative market.