Well managed: Rising rental demand and industry specialisation boost profit margins

Firms in the Residential Property Leasing and Management industry play a vital role in the residential property market by linking landlords with tenants. According to the 2016 ABS Census, approximately 30.9% Australians rent property. Property managers manage most of these rental households and tenants on behalf of landlords. Property managers charge a commission fee, taken as a percentage of the rental income. Industry revenue is expected to grow at an annualised 1.4% over the five years through 2018-19, to reach $5.5 billion. This growth has largely been due to an overall decline in mortgage affordability and higher housing prices over the period. Declining housing affordability makes it difficult for people to enter the real estate market...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 14-19
1.4%
Forecast Growth 19-24
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Profit
x.x%lock
Employment
40,773
Businesses
10,574
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Low initial capital requirements allow many self-employed property managers to enter the industry
  • A higher number of people renting has boosted demand for property management services
  • Higher property prices and stable residential property yields will boost industry revenue

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    Industry Report - Industry Investment Chapter

    The Residential Property Leasing and Management industry is highly labour-intensive. For every dollar spent on capital costs, an estimated $17.00 is spent on labour. Most industry capital equipment, such as computers, office furniture and premises are leased. The industry is based on managing relationships with landlords and tenants, as well as dealing with the day-to-day tasks of managing a property. As a result, wages account for the majority of industry revenue. However, the introduction of online property management systems has caused the industry's reliance on capital to increase over the past five years. Despite this, capital intensity is expected to remain low...purchase to read more.

    Additional Insights for the Residential Property Leasing and Management Industry

    IBISWorld has determined the most important Key Success Factors for the Residential Property Leasing and Management are:

  • Ability to control stock on hand
  • Carrying out all necessary maintenance to keep facilities in good condition
  • Understanding government policies and their implications

    • IBISWorld analysts also discuss how external factors such as Demand from residential property operators and Residential housing prices in the Residential Property Leasing and Management industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Residential Property Leasing and Management Industry?

    Industry players lease and manage residential real estate, or other property that they do not own, on behalf of clients.

    Industry Products
  • Managing and leasing separate houses
  • Managing and leasing semi-detached houses
  • Managing and leasing flats, units and apartments
    • Industry Activities
  • Residential property management
  • Residential property leasing
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Demand from residential property operators
  • Residential housing prices
  • Residential property yields
  • Mortgage affordability

    • Current Performance
  • Industry structure
  • The property market
  • Independent enterprises
  • Chart: Revenue Growth

    • Industry Outlook
  • Housing affordability
  • Technological developments
  • Critical mass
  • Participation

    and profit

  • Table: Residential Property Leasing and Management Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Residential Property Leasing and Management Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Consumers

    • Key Selling Industries
  • Accounting Services
  • Electrical Services
  • Gardening Services
  • Legal Services
  • Plumbing Services

    • Products & Services
  • Managing and leasing separate houses
  • Managing and leasing flats, units and apartments
  • Managing and leasing semi-detached houses
  • Chart: Residential Property Leasing and Management Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Highest income quintile
  • Fourth income quintile
  • Third income quintile
  • Second income quintile
  • First income quintile
  • Chart: Major Market Segmentation for the Residential Property Leasing and Management Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Residential Property Leasing and Management

    • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Residential Property Leasing and Management Industry

    • Industry Globalization

    Major Companies

    There are no major players in this industry. This report includes analysis of other companies.

    Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Residential Property Leasing and Management Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

    • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Residential Property Leasing and Management Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    First Home Owner Grant
  • A government grant designed to aid first homebuyers in buying a property.
    • Loan-To-Value Ratio (Lvr)
  • The ratio that measures the relative size of the loan compared with the overall value of the property.
    • Rental Yield
  • The rent that an investor is able to get from an investment property, expressed as a rate of return.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Residential Property Leasing and Management market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Residential Property Leasing and Management:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Residential Property Leasing and Management market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Residential Property Leasing and Management, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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