Property management software is a service based platform that is changing the future of the real estate industry, providing a more efficient way to streamline operations and control a real estate portfolio.
Find out more about the property management software market, factors that influence growth, key benefits of the products and why more property managers are choosing to digitalize their operations.
Let’s take a closer look.
What Is Property Management Software?
Property management software programs are used globally by landlords and property managers. The digital systems can effectively manage daily operations and improve the productivity within real estate companies.
The real estate sector is data-driven, and employees need access to updated information to make critical decisions. For example, after a simple click, an AI enabled management tool can automatically respond to a lead or complete a property sale, often with improved customer service and less margin of error. The property management software industry offers web and cloud based solutions to help streamline processes.
In an increasingly competitive market, there is a rise in demand for property management software, and market trends anticipate significant growth in future years.
What Are The Property Management Software Market Segments?
To analyse market growth, the property management software industry is divided into segments based on type, applications and regions.
The two different types of segments are; on-premise and cloud.
An on-premise system can be found at the physical business location, such as; the workplace or office.
Cloud based software is hosted on servers in a remote facility and is accessible via portable electronic devices.
Property management software market applications are either commercial or residential.
The commercial segment is for non-residential properties, such as, offices, retail spaces, storage facilities and industrial buildings. The commercial segment may be either government, retail, real estate, construction, or others such as hotels or educational establishments.
The residential segment has the largest market share and comprises residential properties such as houses, flats and multi-storey apartments. The residential sector is anticipated to experience significant growth due to population increases.
Geographically, the industry regions are split into five major segments:
- North America – US, Canada and Mexico
- Europe – UK, France, Germany, Spain, Italy, Central and Eastern Europe, and CIS
- Asia Pacific – China, Japan, South Korea, ASEAN, India and the rest of Asia Pacific
- Latin America – Brazil and the rest of Latin America
- Middle East and Africa – Turkey, GCC, and the rest of the Middle East
In 2022, North America held the largest revenue market share, with the increased number of hotel spaces in the region and expansion of e-commerce a contributing factor.
Europe had the second largest market share, with its growth attributed to updates to its digital strategies and redesign of commercial and residential structures.
The Asia Pacific market predicts improvements due to the growth of emerging countries, evolving infrastructure, and improvements to data administration in the area.
The Middle East is also predicted to experience rapid growth, due to changes to property law and increased transparency in the industry.
Which Segment Captures The Largest Market Size?
Statistics reflect that the cloud segment accounted for the largest revenue share of 60% in 2022, and anticipate its growth to continue. The cloud segment, is predicted to retain the largest market share by the end of 2023.
What Is The Purpose Of Property Management Software?
Property management software development has enabled property managers and landlords to: more effectively manage financial and administrative tasks.
Streamlining tasks helps improve time management within a workplace, as an app-based software solution can save time, increase efficiency and improve productivity within real estate organizations. New automation tools can quickly collect data, generate reports and manage day-to-day tasks with greater speed and accuracy than the manual process.
How Big Is The Global Property Management Software Market?
In 2022, the global property management software market size reached USD 20.14 billion. The Fortune Business Insights projects the market will reach USD 42 by 2030.
The significant growth can be attributed to the growing population and the need for improved customer handling and support.
The rapid growth of the real estate industry, combined with similar expansion of the hotel and tourism market, has increased the demand for property management software.
Between 2022 and 2030, the market anticipates to experience significant growth of at least 10% during the forecast period.
Who Are The Key Players In The Property Management Software Market?
The major players in the property management software market offer innovative solutions to help sustain business growth for their customers. With a focus on product enhancements and new product launches, some of the companies leading the way include;
- AppFolio
- Entrata
- IBM Corporation
- MRI Software
- Oracle
- CoreLogic
- RealPage
- Yardi systems
What Factors Are Currently Driving The Property Market?
Management software is emerging as the preferred service method for property managers, as the accessibility of information and the ability to streamline systems and create a more efficient and sophisticated platform is becoming the new normal.
Several factors account for the current growth in the property management software market, such as the following;
- Real estate ownership and investment opportunities have experienced substantial growth in the last five years, escalating demand for web based property management software.
- Rapid urbanization on a global scale has resulted in the urgent need for more housing to satisfy the demand, with a rise in digital property buyers.
- As well as residential, the commercial sector has helped propel market demand, a growth in disposable income and the advancement of hotel management software has helped to streamline hotel operations.
- Companies have opted to digitalize their operations as it is more cost effective, scalable and easier to use.
- A rise in online hotel bookings has positively influenced the software industry.
- There are now substantially more property management software providers and a range of services, resulting in increased interest and competition.
- The rise in demand for transparency to help build client’s trust has increased, transparency is an essential tool to solidify long term success in the property management sector.
- Property management software enables property managers to have a competitive edge in the market.
- Post COVID-19, more employees are opting to work from home rather than an office.
What Challenges Affect The Property Management Software Market Growth?
The property management software market overview indicates that there will be a steady growth and demand for digital software solutions. The overview forecasts estimates and growth trends of the industry.
There are contributing factors that may influence market growth, which will impact real estate property sales and expansion, such as the following;
- Within the small business sector, the affordability of property management software is a significant factor. Some small companies may be unable to afford the new technology or unwilling to adjust to new systems.
- Property management software is new and innovative, which results in a lack of awareness within the marketplace. Understanding the benefits and increased efficiency are only possible with businesses willing to embrace new technology and adapt to the future.
- Understanding different software solutions for varying applications can be challenging for new users, and adopting the wrong system for operations is possible.
- Data breaches and internet security issues are possible for cloud based segments.
- Global political unrest or financial crisis in developing nations may pose significant risks.
- Physical issues, may impact growth, such as; operational hazards, due to accessibility of building materials, lack of funds, delays on building sites or fraudulent operations.
What Business Solutions Exist Within The Property Management Software System?
The real estate business is a very competitive landscape, and property managers and real estate professionals must ensure they continually seek to improve their processes and find ways to retain a competitive edge. Property management software solutions offer functionalities like online cloud based services, which can improve efficiency and accessibility to information, resulting in increased productivity and client satisfaction.
The web based service applications vary depending on the program, and some of the features include the following:
- Document storage and sharing
- Integrated banking
- Financial reporting and management
- Electronic lease agreements
- Email management
- Track maintenance tasks
- Lease tracking
- Data collection via WIFI
- Rent collection
- Accounting management
- Building maintenance tasks
- Online payment processing
- Online maintenance requests
- Service tracking
Property Management Software Key Benefits
Property management software services help to automate the workflow of busy real estate professionals. Eliminating the need for manual input saves time and increases their efficiency, enabling them to increase productivity and business opportunities.
There are several other benefits of the management software systems, including the following;
- Efficient management of residential and commercial properties
- Supervision and management of daily property related operations
- A centralized platform to view properties
- Automation of back office operations
- Adaptable and scalable system to be used by a variety of users
- Innovative solutions to streamline operations
- Cloud based systems improve the accessibility of information on smartphones, tablets and mobile devices, suitable for busy rental professionals
- Implementation of property management software can boost market sales and provide a competitive advantage
- Diverse marketing strategies which include; market segmentation, product differentiation and divergence
- Elimination of manual input of data
- Improved security when using cloud based software, avoiding loss of data due to power failure, loss or physical disasters
- Storage of all documents on a single platform
- Seamless data integration
- Backup capability to prevent data loss
Covid 19 Impact On The Property Management Software Market
The after effects of COVID-19 have significantly impacted most industries worldwide. Businesses had to make dramatic changes to their operations to comply with movement restrictions, and many forced to shut down as changes were not viable. Companies had to review their business models and adapt quickly.
During the pandemic, the real estate sector experienced extreme disruptions. The initial focus was to keep tenants safe whilst complying with government restrictions. It forced the industry to pivot, rethink strategies and change their work structure. It resulted in an accelerated adoption and introduction of artificial intelligence (AI) based technologies. The e-commerce and software industries experienced rapid development during this period.
The pandemic allowed residential property managers to use new tools, enabling them to change how they do business. Resulting in improvements to efficiency, flexibility and their ability to adapt to the future.
Ultimately, the introduction of AI enabled management tools has helped reduce operational risks and improve customer service within the property management market.
Companies are eager to launch online solutions and applications to ensure they remain viable within the marketplace by providing their products and services online. COVID-19 has changed how we do business by accelerating the adoption of digital technology.
Summary
Property management software is a service based platform that is changing the future of the real estate industry. Property management software services help to automate the workflow of busy real estate professionals, which saves time and increases their efficiency, enabling them to increase productivity and business opportunities.
COVID-19 has changed how we do business by accelerating the adoption of digital technology. Companies had to review their business models and adapt quickly.
The pandemic allowed property managers to use new tools, enabling them to change how they do business, resulting in improvements to efficiency, flexibility and ability to adapt to the future.
The real estate business is a very competitive landscape, and property managers and real estate professionals must ensure they continually seek to improve their processes and find ways to retain a competitive edge. Property management software solutions offer functionalities like online cloud based services to improve efficiency and accessibility to information, resulting in increased productivity and client satisfaction.
In 2022, the global property management software market size reached USD 20.14 billion. The Fortune Business Insights projects the market will reach USD 42 by 2030.
Management software is emerging as the preferred service method for property managers, as the accessibility of information and the ability to streamline systems and create a more efficient and sophisticated platform is becoming the new normal.
FAQs
What Is The Purpose Of Property Management Software?
Property management software development has enabled property managers and landlords to more effectively manage financial and administrative tasks.
Streamlining tasks helps improve time management within a workplace, as an app based software solution can save time, increase efficiency and improve productivity within real estate organizations.
Companies have opted to digitalize their operations as it is more cost effective, scalable and easier to use.
The real estate business is a very competitive landscape, and property managers and real estate professionals must ensure they continually seek to improve their processes and find ways to retain a competitive edge. Property management software solutions offer functionalities like online cloud based services, which can improve efficiency and accessibility to information, resulting in increased productivity and client satisfaction.
How Big Is The Global PMS Market?
In 2022, the global property management software market size reached USD 20.14 billion. The Fortune Business Insights projects the market will reach USD 42 by 2030.
The significant growth can be attributed to the growing population and the need for improved customer handling and support.
Between 2022 and 2030, the global property management software market anticipates to experience significant growth of at least 10% during the forecast period.
What Is Property Management System And Its Advantage?
Property management software is a service based platform which is a more efficient way to streamline operations and control a real estate portfolio. AI enabled management tools have increased efficiency and improved productivity within real estate organizations. New automation tools can quickly collect data, generate reports and manage day to day tasks with greater speed and accuracy than the manual process.
The pandemic allowed property managers to use new tools, enabling them to change how they do business, which improves efficiency, flexibility and their ability to adapt to the future.
The benefits of using cloud based property management systems include seamless data integration and a backup capability, which can prevent data loss.