GITNUXREPORT 2025

Property Management Industry Statistics

Property management industry grows, adopts technology, emphasizes communication, sustainability.

Jannik Lindner

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Key Statistics

Statistic 1

Approximately 60% of property managers reported increased operational costs in 2023

Statistic 2

The average annual rent increase in urban areas is approximately 3.5%

Statistic 3

Security deposits collected annually in the US property management industry total over $10 billion

Statistic 4

The average vacancy rate for multifamily properties in 2023 is around 6.8%

Statistic 5

The average property management fee for residential properties is approximately 8-10% of the monthly rent

Statistic 6

Average property management overhead costs are estimated to be around 15% of gross rental income

Statistic 7

38% of property managers expect vacancy rates to increase during economic downturns

Statistic 8

65% of property management firms outsource maintenance services to reduce costs

Statistic 9

Tenant default rates in residential properties are approximately 2.1% annually

Statistic 10

The average cost of property repairs per unit has increased by 15% over the last year

Statistic 11

The majority of property management companies (around 80%) operate on a fee-based structure

Statistic 12

The average turnover rate for rental properties managed professionally is around 36%

Statistic 13

In the US, property management companies experience an average profit margin of 12%

Statistic 14

The average monthly rent for apartments managed professionally in major US cities exceeds $1,500

Statistic 15

80% of property managers agree that tenant retention is more cost-effective than tenant acquisition

Statistic 16

45% of property managers expect to increase staff in the next year

Statistic 17

The average time to lease a property has decreased from 30 days to 24 days in 2023

Statistic 18

The median age of property management companies in the US is 12 years

Statistic 19

43% of property managers experienced cyber security breaches related to data theft in 2023

Statistic 20

The average age of properties under management in the US is approximately 28 years old

Statistic 21

Approximately 25% of landlords use third-party management services

Statistic 22

67% of property managers cite tenant screening as a critical factor for minimizing risk

Statistic 23

The average length of lease agreements in residential property management is approximately 13 months

Statistic 24

The number of property management companies with remote working policies increased by 30% in 2023

Statistic 25

65% of property managers report difficulties in managing maintenance schedules efficiently

Statistic 26

The global property management market was valued at approximately $19.5 billion in 2022

Statistic 27

The average property management company manages around 250 units

Statistic 28

The property management industry is expected to grow by 8.2% annually until 2027

Statistic 29

Commercial property management accounts for nearly 35% of the total property management industry revenue

Statistic 30

The online property management software market is projected to grow at 10% CAGR through 2028

Statistic 31

The commercial property segment experienced a 12% increase in rent prices in 2023

Statistic 32

Real estate investors managing small portfolios (less than 10 properties) make up approximately 50% of the industry

Statistic 33

The number of residential properties managed digitally has increased by 40% over the past three years

Statistic 34

40% of property management firms plan to expand their portfolios in the next 5 years

Statistic 35

The proportion of properties managed by AI-driven systems grew by 18% in 2023

Statistic 36

78% of property managers use cloud-based software for operations

Statistic 37

Technology adoption in property management has increased by 25% over the past three years

Statistic 38

80% of property managers rely on digital marketing to attract tenants

Statistic 39

In 2023, almost 50% of property managers had adopted AI tools for screening applicants

Statistic 40

55% of property managers are planning to invest in smart building technology within the next 2 years

Statistic 41

Over 70% of property managers use online portals to communicate with tenants

Statistic 42

The use of virtual tours in property marketing increased by 35% in 2023

Statistic 43

50% of property managers plan to adopt more automation tools within the next year

Statistic 44

The share of rental properties equipped with smart security systems increased by 22% in 2023

Statistic 45

23% of property managers utilize data analytics to optimize rental yields

Statistic 46

42% of tenants prefer online rent payment options

Statistic 47

65% of property managers cite tenant communication as a top operational challenge

Statistic 48

52% of tenants believe transparent communication improves their overall satisfaction

Statistic 49

69% of tenants say responsive maintenance improves their likelihood to renew

Statistic 50

55% of property managers believe sustainability initiatives are vital for future growth

Statistic 51

30% of residents prioritize eco-friendly features when choosing a rental property

Statistic 52

70% of property managers report increased tenant retention through improved communication strategies

Statistic 53

The most common reason tenants choose a property is location, cited by 85% of renters

Statistic 54

25% of tenants are lost due to unresponsive maintenance requests

Statistic 55

72% of property managers say that maintaining good tenant relations is essential for their success

Statistic 56

58% of tenants say they would be willing to pay higher rent for enhanced digital amenities

Statistic 57

52% of property management firms reported increased demand for eco-friendly building certifications

Statistic 58

The average age of tenants in managed residential properties is around 35 years

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Key Highlights

  • The global property management market was valued at approximately $19.5 billion in 2022
  • Approximately 60% of property managers reported increased operational costs in 2023
  • The average property management company manages around 250 units
  • 42% of tenants prefer online rent payment options
  • 78% of property managers use cloud-based software for operations
  • The average annual rent increase in urban areas is approximately 3.5%
  • The property management industry is expected to grow by 8.2% annually until 2027
  • 65% of property managers cite tenant communication as a top operational challenge
  • Commercial property management accounts for nearly 35% of the total property management industry revenue
  • 52% of tenants believe transparent communication improves their overall satisfaction
  • Security deposits collected annually in the US property management industry total over $10 billion
  • The average vacancy rate for multifamily properties in 2023 is around 6.8%
  • 45% of property managers expect to increase staff in the next year

As the global property management industry, valued at nearly $20 billion in 2022, accelerates towards an 8.2% annual growth fueled by innovative technologies and shifting tenant preferences, it is redefining how landlords and managers optimize operations, improve tenant satisfaction, and adapt to a dynamic real estate landscape.

Financial Metrics and Cost Analysis

  • Approximately 60% of property managers reported increased operational costs in 2023
  • The average annual rent increase in urban areas is approximately 3.5%
  • Security deposits collected annually in the US property management industry total over $10 billion
  • The average vacancy rate for multifamily properties in 2023 is around 6.8%
  • The average property management fee for residential properties is approximately 8-10% of the monthly rent
  • Average property management overhead costs are estimated to be around 15% of gross rental income
  • 38% of property managers expect vacancy rates to increase during economic downturns
  • 65% of property management firms outsource maintenance services to reduce costs
  • Tenant default rates in residential properties are approximately 2.1% annually
  • The average cost of property repairs per unit has increased by 15% over the last year
  • The majority of property management companies (around 80%) operate on a fee-based structure
  • The average turnover rate for rental properties managed professionally is around 36%
  • In the US, property management companies experience an average profit margin of 12%
  • The average monthly rent for apartments managed professionally in major US cities exceeds $1,500
  • 80% of property managers agree that tenant retention is more cost-effective than tenant acquisition

Financial Metrics and Cost Analysis Interpretation

Navigating the property management landscape in 2023 feels like balancing a 15% overhead tightrope while juggling rising costs, fluctuating vacancy rates, and the ever-elusive quest for tenant retention, all amid the math of a $10 billion security deposit industry and profit margins hovering around 12%.

Management Practices and Operational Trends

  • 45% of property managers expect to increase staff in the next year
  • The average time to lease a property has decreased from 30 days to 24 days in 2023
  • The median age of property management companies in the US is 12 years
  • 43% of property managers experienced cyber security breaches related to data theft in 2023
  • The average age of properties under management in the US is approximately 28 years old
  • Approximately 25% of landlords use third-party management services
  • 67% of property managers cite tenant screening as a critical factor for minimizing risk
  • The average length of lease agreements in residential property management is approximately 13 months
  • The number of property management companies with remote working policies increased by 30% in 2023
  • 65% of property managers report difficulties in managing maintenance schedules efficiently

Management Practices and Operational Trends Interpretation

As the property management industry evolves—shrinking lease times, rising staffing plans, and a surge in remote policies—it's clear that modern managers must juggle cybersecurity threats, aging assets, and tenant screening risks, all while striving for efficiency in an increasingly digital and complex landscape.

Market Size and Industry Growth

  • The global property management market was valued at approximately $19.5 billion in 2022
  • The average property management company manages around 250 units
  • The property management industry is expected to grow by 8.2% annually until 2027
  • Commercial property management accounts for nearly 35% of the total property management industry revenue
  • The online property management software market is projected to grow at 10% CAGR through 2028
  • The commercial property segment experienced a 12% increase in rent prices in 2023
  • Real estate investors managing small portfolios (less than 10 properties) make up approximately 50% of the industry
  • The number of residential properties managed digitally has increased by 40% over the past three years
  • 40% of property management firms plan to expand their portfolios in the next 5 years
  • The proportion of properties managed by AI-driven systems grew by 18% in 2023

Market Size and Industry Growth Interpretation

With a booming valuation of nearly $20 billion, a steady 8.2% annual growth forecast, and nearly half of investors managing small portfolios, the property management industry is clearly evolving into a digital-driven, lucrative arena — where commercial rents are rising, AI is gaining ground, and firms are betting on expansion, proving that in real estate, even the smallest units are becoming part of a high-tech, high-reward future.

Technology Adoption and Digital Tools

  • 78% of property managers use cloud-based software for operations
  • Technology adoption in property management has increased by 25% over the past three years
  • 80% of property managers rely on digital marketing to attract tenants
  • In 2023, almost 50% of property managers had adopted AI tools for screening applicants
  • 55% of property managers are planning to invest in smart building technology within the next 2 years
  • Over 70% of property managers use online portals to communicate with tenants
  • The use of virtual tours in property marketing increased by 35% in 2023
  • 50% of property managers plan to adopt more automation tools within the next year
  • The share of rental properties equipped with smart security systems increased by 22% in 2023
  • 23% of property managers utilize data analytics to optimize rental yields

Technology Adoption and Digital Tools Interpretation

With nearly four-fifths embracing cloud solutions, half deploying AI screening, and over 70% communicating via online portals, the property management industry is clearly trading traditional hands-on methods for a data-driven, high-tech approach—making smart buildings and virtual tours not just trends but essentials in the 21st-century rental marketplace.

Tenant Preferences and Engagement

  • 42% of tenants prefer online rent payment options
  • 65% of property managers cite tenant communication as a top operational challenge
  • 52% of tenants believe transparent communication improves their overall satisfaction
  • 69% of tenants say responsive maintenance improves their likelihood to renew
  • 55% of property managers believe sustainability initiatives are vital for future growth
  • 30% of residents prioritize eco-friendly features when choosing a rental property
  • 70% of property managers report increased tenant retention through improved communication strategies
  • The most common reason tenants choose a property is location, cited by 85% of renters
  • 25% of tenants are lost due to unresponsive maintenance requests
  • 72% of property managers say that maintaining good tenant relations is essential for their success
  • 58% of tenants say they would be willing to pay higher rent for enhanced digital amenities
  • 52% of property management firms reported increased demand for eco-friendly building certifications
  • The average age of tenants in managed residential properties is around 35 years

Tenant Preferences and Engagement Interpretation

In an industry where 85% of tenants prioritize location and 70% cite responsive maintenance as key to renewal, property managers must navigate a digital and sustainable shift—embracing online payments, transparent communication, and eco-friendly features—if they hope to keep their tenants happy, engaged, and paying, all while ensuring operational success in a landscape where nearly a quarter of renters are lost due to unresponsiveness.

Sources & References