Why Soaring Rents Are a Problem for Property Managers

Reputation

Will skyrocketing rents create a reputation management crisis for property management companies? This question looms larger by the day as apartment dwellers fork over increasingly steep monthly rents. According to Zumper, the national median price tag on a one-bedroom rental apartment has surged to an all-time high of 12% year-over-year to $1,374. In New York, rents are skyrocketing as much as 40% as COVID-era discounts go by the wayside. 

Why Are Rents Soaring?

These factors are playing a big role in driving rents up:

There’s no relief in sight. Institutional investors are buying a record share of U.S. houses. That will likely push rents even higher in the coming months, as tenants renew their leases or move to a new place. According to a national survey, 69% of respondents say they expect rent prices to continue to rise at a near-record pace. On average consumers expect rent to increase by 7.1%.

Graph of rent increase

Second graph of rent increase

What This Means to Property Management Firms

Property management firms are getting short-term financial gain from rising rents. But they’re also incurring:

Average rent star rating 2021

What Property Managers Should Do

For More Information

Read our Property Management Report for a more in-depth examination of how property managers should manage their reputations. Contact Reputation to learn how we can help you manage your entire online reputation with our property management expertise online.

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