Why Small Property Management Demand Is Increasing

The need for small property management is increasing in San Diego. Sunrise Management, a San Diego-based property management company, is growing its small properties division in response to the increased demand, naming new leadership with the promotion of Peyton C. Hoban to director of its small property division and Eric Paulin as regional manager.

“We have found that the demand for high caliber management of small residential properties is growing,” Hoban tells GlobeSt.com. “The inventory of small multifamily developments in San Diego County is large and many properties have been in the hands of current ownership for years.  Because of their sheer number and as long-term owners grow older and look to monetize their investments, these properties are frequently available for purchase. They can represent wonderful investment opportunities to buyers willing to inject capital into well-located, older assets.  With that kind of investment, investors need strong management to meet the evolving needs of their residents and to realize a good return on their investment. We are adding to our team to meet that demand and maintain that high level of service.”

A small property is defined as a residential property with fewer than 22 units. Currently, Sunrise has a portfolio of 82 properties, but the number is growing. “As our clients continue to buy properties and improve them, we expect our small property portfolio to increase by at least 20% this year,” says Hoban. “We also expect demand for affordable, quality housing in the San Diego area to continue.”

The value-add investment market, where investors have purchased older, smaller buildings and renovated them, is fueling the increasing demand. The renovated properties are competing with larger, more expensive units and are requiring quality management programs. “As old housing stock is acquired by investors, then renovated and offered for rent at competitive rates, service is a growing part of the value-proposition to renters,” adds Hoban. “This elevates the importance of management generally and makes superior management a competitive advantage for large as well as small multifamily properties.”

Sunrise has provide tailored client services to its small properties owners, and doesn’t plan to alter its already successful strategy. “Our goal continues to be to bring the high-level of resident and client service associated with large apartment communities to small properties,” explains Hoban. “With this in mind, we are committed to bringing best practices to the management of small properties.  This requires unique applications of technology and a real commitment to service.”