Re-evaluating Real Estate Approaches: How Trends in Remote Work are Changing Property Management
Real estate professionals and property managers are witnessing a rise in remote work, particularly portfolio management. As more employees work remotely, tenant expectations and demand levels have shifted. Property managers must adapt their strategies to stay updated with changing preferences, demographic migration trends, and technological requirements. This requires understanding remote working statistics and being flexible in adapting operational models that support decentralized and flexible client bases.
Residential property managers are attracting more renters and buyers for units with home offices, as tenants seek better lighting, soundproofing, faster internet infrastructure, and soundproofing between work areas and bedrooms. To attract and retain tenants who value functionality over location, property managers should reconsider floor plan layouts, upgrade amenities like coworking spaces, and prioritize upgrades that anticipate tenants’ needs over location.
Remote workers are shifting their location preferences from dense urban areas to suburban or rural areas, resulting in lower housing costs and changing rental demand maps. This has challenged property managers to adapt to these changes. In markets with increased remote workers, property managers must focus on managing large properties with lifestyle amenities. At the same time, those in urban settings may need to rebrand, highlight cultural aspects, or adapt pricing strategies.
Commercial property management has been particularly discomfiting. Demand for traditional office space has decreased as remote working has become more mainstream, but vacant office spaces present both challenges and opportunities to property managers; they could repurpose them as residential units, shared coworking spaces, or mixed-use developments by working with local authorities on adaptation requirements and infrastructure upgrades. Future-proofing against changes to worker behavior as a result of future disruption.
Flexible lease terms have become more important with the rise of remote working. Tenants who desire flexibility and mobility tend to favor shorter contracts like month-to-month leases or furnished units over traditional long-term agreements. Some property managers have responded by exploring models such as month-to-month rentals or temporary occupancy that cater better to digital nomads and remote workers. While such models require greater management overhead costs for property managers, when properly promoted they can lead to greater margins while simultaneously increasing tenant satisfaction among a workforce who value choice over permanence.
Remote work has increased operational complexity, requiring property managers to adjust staffing and maintenance protocols to accommodate increased resource consumption during daytime hours. This shift necessitates improvements in energy efficiency, waste management, responsive customer service models, transparent tenant portals, and smart home systems to maintain smooth operations and adapt to the changing lifestyle of telecommuting.
Property managers should incorporate data on remote work into their investment and forecasting models for accurate investment and acquisition forecasting. Understanding demographics like freelancers and entrepreneurs can help shape marketing strategies and service offerings. Regional employment trends and housing affordability information are crucial for long-term planning. Making outdated assumptions about commuters, office usage, and tenant behavior risks falling behind in today’s evolving environment.
Remote work is a long-term evolution for property management, and those who adapt and innovate effectively are poised for success. By creating flexible living and working spaces, building sustainable value through data insights, and proactive planning, property managers can thrive in the changing landscape of property management.