The Latest Property Management Software Industry Statistics Explained
The global property management market size was valued at $12.88 billion in 2019.
The statistic indicates that the global property management market had a total value of $12.88 billion in 2019. This figure reflects the total revenue generated by companies providing property management services worldwide during that year. It suggests the substantial size and significance of the property management industry on a global scale in terms of revenue generation. This statistic highlights the growing demand for professional property management services as real estate markets continue to expand and diversify, emphasizing the importance of efficient property management practices for both commercial and residential properties.
The property management software market is expected to grow at a compound annual growth rate (CAGR) of 5.8% from 2020 to 2027.
The statistic indicates that the property management software market is projected to experience a consistent annual growth rate of 5.8% between the years 2020 and 2027. This growth is described as a compound annual growth rate (CAGR), accounting for the cumulative effect of growth over multiple years. The prediction suggests that the demand for property management software is anticipated to increase steadily over this period, driven by factors such as technological advancements, increased digitization in the real estate industry, and a greater emphasis on efficiency and automation in property management processes. This forecast provides insights for industry stakeholders to anticipate and strategize for the growth trajectory of the property management software market over the specified timeframe.
The commercial deployment of property management software services accounted for 39.1% of the overall share in 2019.
The statistic stating that the commercial deployment of property management software services accounted for 39.1% of the overall share in 2019 indicates that a significant portion of the market for property management software services was attributed to commercial operations during that year. This suggests that businesses, corporations, and other commercial entities were the primary users and adopters of property management software services, representing nearly 40% of the total market share. This statistic highlights the growing importance and adoption of technology in the commercial property management sector, showcasing a trend towards greater efficiency, organization, and automation in managing properties and real estate assets in the business world.
58% of property managers confirmed that property management software provided significant help in their daily tasks.
The statistic stating that 58% of property managers confirmed that property management software provided significant help in their daily tasks indicates that a majority of property managers find value in using technology to streamline their operations. This statistic suggests that property management software plays a crucial role in improving efficiency, productivity, and overall effectiveness in the daily responsibilities of property managers. By embracing technological tools such as software applications tailored for property management, professionals in this field can automate processes, enhance communication with tenants and property owners, track financial data, and ultimately optimize their performance. This high percentage of property managers acknowledging the benefits of software underscores the importance of leveraging advancements in technology to enhance the management of properties effectively and efficiently.
The top five property management software vendors constitute nearly 75% of the global property management software market.
This statistic indicates that the global property management software market is heavily concentrated among the top five software vendors, as they collectively capture nearly three-quarters (75%) of the market share. This high level of market share dominance suggests that these top vendors hold significant influence and control over the industry. Customers in the property management sector are predominantly choosing from these top five vendors for their software solutions, potentially due to strong brand recognition, advanced features, established customer bases, or other competitive advantages. This market concentration can also lead to intense competition among the top vendors and may pose barriers to entry for smaller or emerging software companies looking to enter the property management software market.
Approximately 70% of property managers use property management software to automate their business processes.
The statistic indicates that a large majority, around 70%, of property managers utilize property management software to streamline and automate various aspects of their business operations. This shows a prevalent trend in the industry towards adopting technology to improve efficiency, organization, and overall effectiveness within property management tasks. By leveraging software tools, property managers can more easily handle tasks such as tracking rental payments, communicating with tenants, managing maintenance requests, and generating reports, ultimately allowing them to operate their businesses more smoothly and effectively.
The United States is one of the largest markets of property management software where its market size will increase by USD 483.79 million during 2018-2022.
The statistic indicates that the United States currently holds a prominent position in the property management software market, with expectations of considerable growth in market size. The projected increase of USD 483.79 million between 2018 and 2022 highlights a significant expansion opportunity within the industry. This growth could be driven by factors such as increasing demands for effective property management solutions, advancements in technology, and a growing number of properties requiring management. With the United States’ strong presence in this market and the anticipated rise in market size, it suggests a positive outlook for the property management software industry in the coming years.
About 65% of property managers stated that property management software helped reduce accounting errors.
The statistic indicates that approximately 65% of property managers believe that using property management software has helped to decrease accounting errors in their operations. This suggests that there is a widespread perception within the property management industry that leveraging software tools can improve accuracy and efficiency in financial management tasks. The finding implies that such technology is seen as a valuable asset in streamlining accounting processes and reducing the likelihood of mistakes, ultimately contributing to better organizational performance and decision-making within property management companies.
In 2019, the SaaS deployment type held the maximum market share of the property management software market.
The statistic stating that in 2019, the Software as a Service (SaaS) deployment type held the largest market share of the property management software market indicates that SaaS-based solutions were the most popular choice among property management professionals and businesses. This data suggests that property management software users preferred the flexibility, accessibility, and cost-effectiveness offered by SaaS deployment over other methods such as on-premises or hybrid solutions. The dominance of SaaS reflects a shift towards cloud-based technologies in the property management industry, emphasizing the importance of scalable and efficient software solutions for managing properties effectively.
Online portals, a feature of property management software, are said to be used by 60% of tenants and property owners.
The statistic stating that online portals, a feature of property management software, are used by 60% of tenants and property owners indicates a significant adoption rate of this technology within the real estate industry. Online portals allow tenants and property owners to conveniently access important information such as lease agreements, rental payments, maintenance requests, and communication with property managers through a digital platform. This high usage rate suggests that there is a strong demand for more efficient and streamlined communication and management processes in the property sector. The widespread adoption of online portals may lead to increased efficiency, transparency, and satisfaction among tenants and property owners, ultimately improving the overall property management experience for all parties involved.
Tenants who can pay rent through property management software now comprise about 79% of the market.
This statistic indicates that a significant portion, specifically about 79%, of tenants in the market are using property management software to make rent payments. This could suggest a growing trend towards digital solutions for handling rent payments and property management tasks among tenants. The data implies that property management software has become a popular and convenient option for tenants to handle their financial obligations related to renting properties. The widespread adoption of property management software by tenants may also have implications for property managers and landlords in terms of streamlining rent collection processes and improving overall efficiency in managing rental properties.
RealPage, AppFolio, Inc., and Entrata control approximately 75% of the property management software market.
The statistic provided indicates that the three companies, RealPage, AppFolio, Inc., and Entrata, collectively dominate a significant portion of the property management software market, controlling around 75% of the market share. This high level of market concentration suggests that these companies are major players in the industry, potentially enjoying significant competitive advantages such as strong brand recognition, product offerings, customer base, and technological capabilities. The dominance of these companies may also indicate barriers to entry for new competitors, as the market is largely controlled by these established firms. Customers within the property management software market are likely to primarily consider these three companies when making purchasing decisions, given their stronghold on the industry.
The residential segment dominates the property management software market share with nearly 68% share.
This statistic indicates that in the property management software market, the residential segment holds a significant lead in market share, capturing approximately 68% of the total market. This suggests that a majority of properties being managed using software are residential properties like apartment buildings, single-family homes, or condominiums. The dominance of the residential segment implies that property management software tailored towards this sector may be in higher demand or more widely used compared to software designed for commercial or industrial properties. Understanding this distribution of market share can help software developers and property management companies better target their products and services to meet the needs of the largest segment of customers in the industry.
Around 35% of US property management companies currently use property management software.
The statistic that around 35% of US property management companies currently use property management software indicates the level of adoption of technological solutions within the property management industry. This suggests that a significant portion of property management companies have recognized the benefits of utilizing software tools to streamline their operations, improve efficiency, and enhance overall management processes. The use of property management software can offer various advantages such as automating tasks, organizing data, facilitating communication with tenants, and providing insights for better decision-making. This statistic underscores the trend towards digital transformation in the property management sector and highlights the importance of leveraging technology to stay competitive and meet the evolving needs of property owners and tenants in today’s market.
Around 98% of property management software users report that the software saves them time and contributes to real cost savings.
The statistic states that approximately 98% of users of property management software have reported that the software effectively saves them time and contributes to real cost savings. This high percentage indicates a strong positive impact of the software on the users’ efficiency and financial performance. The reported benefits suggest that the software streamlines various property management tasks, automates processes, and helps in reducing operational costs. Overall, the statistic highlights the significance of property management software in improving productivity, efficiency, and financial outcomes for users in the real estate industry.
Conclusion
Based on the property management software industry statistics discussed, it is evident that the market is poised for growth with increasing adoption of technology in property management. The statistics highlight a shift towards automation, efficiency, and improved customer experience in the industry. As competition continues to rise, property management software companies will need to stay innovative and aligned with market trends to capitalize on the opportunities presented in this growing industry.
References
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6. – https://www.www.ipropertymanagement.com
