The property management industry has been on a wild ride in recent years, adapting to rapid shifts at every turn. Inflation may have cooled since its 2022 peak, but costs are still high. The labor shortage has eased slightly, yet unemployment remains low. Apartment construction is booming at levels unseen in decades, the housing market is picking up steam, and technologies like artificial intelligence are no longer futuristic—they’re here.
Running a property management company in 2025 looks vastly different from just a few years ago. To thrive, you need a clear view of what’s coming next. That’s why we’ve pinpointed the five biggest industry trends set to define 2025, drawn straight from our 2025 Property Management Industry Report. This annual report, packed with insights from thousands of professionals, helps companies navigate their environment, grow their portfolios, and keep residents and owners happy. Want the full scoop? Grab your free copy of the report for deeper research on today’s rental market dynamics.
Here’s what’s on the horizon for 2025:
Trend #1: Evolving Growth Strategies for Property Management Companies
Property managers are doubling down on growth, but their playbook is changing. For the third straight year, over 90% of surveyed industry pros say they’re aiming to expand their portfolios in the next two years. What’s new in 2025? The how is getting creative.
In 2023, growth hinged on landing new clients and nudging existing ones to buy more properties. But with high property prices and interest rates slowing owner acquisitions, companies are pivoting. They’re buying or building their own properties, snapping up competitors’ portfolios, and branching into new property types and regions. It’s a bold shift to keep the momentum going—proof that adaptability is the name of the game.
Trend #2: Rising Costs Squeeze the Industry
Costs are still a thorn in the side of property managers and their rental owner clients. Compared to pre-COVID days, everything’s pricier: insurance premiums (up 26% in the last year alone), property taxes, utilities, materials, and labor. Efficiency is now a survival skill.
To fight back, 94% of companies expect revenue to climb over the next two years. How? Nearly 40% plan to roll out new services like cleaning or landscaping, while 33% aim to manage fresh property types—think vacation rentals or HOAs. Meanwhile, rental owners’ thinning margins are tempting some to self-manage, though most still lean on property managers’ expertise to navigate today’s complexities. Proving value has never been more critical.
Trend #3: Competition Heats Up
The battle for clients is fiercer than ever. With the home sales market sluggish—1.5 million Realtors chasing just 563,000 listings in March 2023—real estate agencies are dipping into property management. One respondent nailed it: “As the real estate market softens, agents will jump in, taking opportunities—but their inexperience opens doors for us to stand out.”
Smaller firms also face pressure from big players slashing fees thanks to economies of scale. The counterpunch? Personalized service and broader offerings. In 2025, differentiation is the edge that keeps companies in the game.
Trend #4: Resident Retention Takes Center Stage
With 960,000 multifamily units under construction—the most in decades—the rental market is cooling, especially at the high end. Property managers are zeroing in on keeping their best residents. Tactics include top-notch service, unit upgrades, and capping rent hikes for current tenants.
One Memphis manager shared: “With hundreds of new units hitting downtown, we’re boosting retention with tenant events—birthday cards, Wine-Down Wednesdays. Longer stays mean better profits and happier clients.” Screening for reliable, long-term renters is also key, especially with economic uncertainty lurking.
Trend #5: Technology Becomes the Backbone
Tech isn’t just a nice-to-have—it’s the heartbeat of property management in 2025. Software slashes time on grunt work, letting companies scale without skimping on service, offset rising costs, and tackle the labor crunch. One respondent put it simply: “Efficiency lets staff handle more with less, cutting employee costs.” Another added, “It frees us from rote tasks, boosting job satisfaction.”
Renters and owners expect it, too. Post-pandemic, 95% of owners and 90% of renters demand online options—payments, document sharing, communication, maintenance requests. Tech isn’t just streamlining; it’s redefining the customer experience.
Looking Ahead
These trends paint a clear picture: 2025 is about agility, value, and smart tech. Property management companies that embrace these shifts—diversifying growth, managing costs, outshining competitors, retaining residents, and leaning on technology—will come out on top. Dive into the 2025 Property Management Industry Report for more data to fuel your strategy. How are you gearing up for the year ahead? Let’s hear your thoughts!
