Staying Ahead of Market Trends: San Mateo Property Management Insights for 2023 and Beyond

As San Mateo real estate experts providing property management services in the Peninsula, we work hard to stay up to date on all the industry trends and market shifts that will impact the properties our clients rent out. 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. 

We’ve had a lot of activity in the rental market over the last few years, and it seems like we’re always adjusting to some new normal. 

Still, there’s a lot happening in the property management industry, and we’re pretty excited about the opportunities and even the challenges. 

We want to share with landlords, real estate investors, and rental property owners some of the property management industry trends we expect to see throughout the rest of 2023 and into the 2024 year. Some of these will come as no surprise – technology will continue to make our lives easier, for example, and the demand for high-quality rental housing will remain high. Some trends may surprise you, however, such as the continued hesitancy of people to buy right now, and the way positive customer experiences are really becoming the bedrock of good rental policies.  

Here are some of the anticipated trends that we find most interesting as San Mateo property managers. 

Peninsula Property Management Technology 

Technology is always going to be trending, in every industry and in every local market. 

The amount of technology that’s now available to property managers is incredible. We are moving far beyond software systems and digital platforms. Now, we’re talking about Artificial Intelligence (A.I.) and how it can help us respond to tenants intuitively. You’ll want to take a look at how AI works – and doesn’t work – for your investment property.

Every property manager in San Mateo and throughout the Peninsula is: 

• Using an online portal to collect online rental payments, maintenance requests, and offer owners a real-time look at how their property is performing financially
• Offering self-showings for ease, convenience, and a faster leasing period.
• Leveraging digital inspection software that allows us to take photographs, videos, and notes while in the property, and then creating a detailed inspection report in real time. 

Machine learning and A.I. will be used to manage more and more automated tasks, leaving property managers free to focus on tenant relationships and unique resident experiences. 

Choices for Property Management Services in the Peninsula 

For a while, it looked like large corporate property management companies were taking over. 

They seemed to be buying up all the smaller and more local companies. That’s not exactly what happened, however. Independent landlords and even real estate investors with large portfolios have realized the value in hands-on property management that comes from local experts who love what they do. 

One thing that these institutional investors have impacted, however, is the supply in the market. You may be looking at the real estate market in San Mateo or anywhere, really, and wondering who is buying up all of the single-family homes, condos, and townhomes. You may be wondering why the inventory remains so low and the prices continue to rise. 

There are a lot of reasons for that, but there’s one in particular: institutional investors. 

Creating Customer Experiences

Providing a great customer experience for residents has been a priority for a few years now. For property managers, we’ve invested a lot of time and energy into resident relationships. It’s contributed to: 

• Better retention rates
• On-time rent collection
• Better rental experience for everyone 

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. 

Targeted, strategic advertising, more objective resident screening, and a commitment to creating an enjoyable resident experience are some of the things we expect in the next year.  When you invest your resources in developing a great resident relationship before they even move in – you’re setting yourself up for a more profitable investment experience. 

Customer service may continue to evolve. It’s always going to require responsive maintenance, effortless communication, transparent expectations, and conveniences like online rental payments. However, it will also mean more security in the home, a more personalized property where residents can really feel at home, and flexible lease terms such as longer or shorter leases. Residents are looking for smart home tech. They want flexibility. Prepare for those trends.

Rising Rental Values 

In San Mateo alone, rents are six percent higher this year than they were last year. 

That’s even with rent control across the state. Rents are beginning to peak after a pretty steady increase. They’re still quite high in San Mateo, but we don’t expect that you’ll be able to continue asking for higher and higher rents with new properties that are listed. 

Prepare for stabilizing rents that are still high enough that you can increase what you earn every time to sign a lease renewal and raise the rent. As we move deeper into 2023, 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.  

None of us has a crystal ball to make perfectly accurate predictions. This is what we see and expect based on our experience as property managers in San Mateo. 

If you’d like to talk about how the sifting rental market and the newest property management industry trends may impact your investment specifically, please contact us at Bayside Management. We lease, manage, and maintain investment properties in San Mateo and around the Peninsula, including San Carlos, Redwood City, Pacifica, San Bruno, Half Moon Bay, Daly City, Mountain View, Foster City, and Palo Alto.