Real estate investors shift toward professional management and new construction

Real estate investors are increasingly shifting toward professional management and new construction to mitigate risks and optimize returns. Data indicates a rising trend in professional property management; the percentage of rental owners utilizing these services grew from 55% before the pandemic to 64% in 2020.

In markets like Fort Worth, owners are turning to professional services to navigate local complexities, tenant expectations, and evolving regulations. Professional management helps reduce vacancies and protects owners from legal or maintenance errors that can impact profitability.

Additionally, investing in new construction is becoming a preferred strategy to avoid the high costs associated with older properties. In areas such as Bozeman, MT, new builds offer lower operating expenses due to modern HVAC, plumbing, and roofing systems. A Realtor.com study suggests that new homes can save owners more than $25,000 over ten years compared to older properties, primarily through reduced maintenance and energy expenses.