Whether you’re just starting to grow your property management business or you’re well established as a leader in your market, it’s important to understand where you measure up in comparison to other PMCs in your area. Knowing the competition will help you better understand where you need to improve, what your differentiators are, and how you can win more business and delight more residents. That’s where a property management market analysis comes in.
In this post, we’ll cover what a market analysis is, why it’s so important for property management leaders, and how to conduct an analysis of your local market.
A market analysis is a comprehensive look at the many factors that play into your property management strategy and how they compare to the other companies in your market. A market analysis is materially different from a rental comp analysis or a general real estate market forecast.
Unlike a real estate forecast, this analysis is specific to the day-to-day operations of your business and how you approach property management. Rather than focusing primarily on pricing, you’re also looking at service offerings, marketing, branding, and more.
Your market analysis will definitely help you evaluate rental rates, but it will also help you make better decisions about your complete service package, spot risk, and differentiate your business.
A well-conducted market analysis is invaluable to your business. At the end of the day, it helps you avoid guesswork and make data-backed decisions. Let’s look at some of the biggest benefits of a detailed analysis:
The market data gained from your analysis will help you evaluate future business opportunities, like expansion into a new location, new service offerings, or even the prospect of acquiring other businesses nearby. It also helps you better plan for investments in property upgrades, staffing, or tech, and reduce the risk associated with those expenses.
Your research will also help uncover local expectations among renters around amenities, service responsiveness, and pricing. There are plenty of research firms looking at these trends nationwide, but because every market is different, it’s important to also look at your local area.
You should be analyzing demographic information like age, income, and household size to better tailor your offerings. A married couple with two kids is going to have very different needs and expectations than a group of college students, for example.
Part of your analysis should also include looking for areas of change. Population growth, job creation, and new housing developments will often indicate areas with changing demand. That will allow you to enter underserved areas before they become saturated by your competitors. It’s a great way to gain a strategic advantage when you’re either expanding your company or shifting focus.
Market insights also help you give your investors clear, data-backed recommendations. You’ll be better equipped to answer tough questions about pricing, upgrades, and property positioning using the information you’ve gathered through your market research. Plus, if you’re working to attract investors who are currently self-managing, your analysis can help prove out the value of hiring a good property manager—and why your competitors fall short.
Real estate markets are always in motion, so your strategy should be, too. Ongoing research and analysis can help you pivot when market dynamics shift, especially when you see changes in demand and vacancy rates.
A useful market analysis goes beyond just looking at rent prices. If you want to gain true insight into your market, here are some additional pieces of information you need to be digging into:
Things like age and income, along with a breakdown of what percent of people rent vs. own in your target neighborhoods will help you better evaluate the opportunities in front of you. You can use publicly available tools like the U.S. Census and data from your local chamber of commerce to understand many of these dynamics.
You should always be evaluating median rent prices and vacancy rates in your area, but you should also be looking at increases in rent over time, as well as the overall growth in number of renters locally. These factors all contribute to whether it’s a renter-friendly or owner-friendly market, which will help you determine rent prices, marketing investments, and more.
Make sure to look at what types of properties dominate your market. Is it primarily single family homes, small multifamily, or apartment complexes? Maybe it’s a mix of all three. What’s the average square footage of available rental properties? How many bedrooms and bathrooms do they have?
One of the most important parts of your analysis will be examining your competitor landscape. How do you stack up compared to other property managers in your area? Start by researching who those other companies are, as well as what they include in their service packages, especially if they have multiple tiers or optional add-on services. See what you can find on their pricing, as well as their core value proposition and pitch messaging.
Part of the competitor analysis is also to determine whether there are gaps that no one in your market is currently serving. For example, there may be demand for high-end properties, more pet-friendly units, or even short-term rentals that’s currently going unmet.
Make sure that you have a comprehensive understanding of the amenities and services available around your properties. You should understand local transportation options, walkability, school quality, and more, which all impact resident satisfaction and shape how your properties stack up against others.
When you approach a market analysis, you have to analyze the data you uncover through the lens of your business goals. Determine what it is that you’re trying to achieve, and then make sure you’re getting the information you need to inform that goal. Here are some steps to building an effective market analysis:
Of course, you want to start with your existing coverage area, but you should also analyze areas that you’re looking to grow into. Start with neighborhoods you currently serve, but make sure to research expansion opportunities thoroughly in order to inform your growth strategy.
A demand-based analysis focuses on resident expectations, like amenities, pricing, and location. You’re basically looking at what the customers in your market demand.
A supply-based analysis consists of looking at other properties or management companies in your area and how they’re positioned. You’re looking at what’s currently being supplied in your area.
Running both types of analysis can be extremely valuable because it shows you very clearly where the current players in the market are failing to meet expectations, and what gaps you might want to fill with your company. It provides a clearer picture of where your offering stands in comparison, and where you should focus on improving.
When it’s time to start compiling data, it’s helpful to start with data that’s already publicly available. For example, Census Reporter contains a wealth of demographic data, and tools like Rentometer offer great local rent data. Depending on your market, there are likely other local financial reports available, either from your city or county government, local nonprofits, or even for-profit research firms.
Competitor data can take a bit more digging. Start by looking at their company websites, but also search for their listings on popular listing services like Zillow. Make note of their branding and language, what services they offer, and what fees they’re charging. You should also record what kind of marketing you see from them, especially whether they’re purchasing Google Ads, social media sponsored posts, or even ads in the local paper.
You should also be leveraging your own network of owners to gain additional insights. Consider sending short surveys to your investor clients to learn what they want most from a property manager. If you record your investor calls with a tool like Gong, you can also search transcripts or recordings of previous calls to gain insights into what they’re looking for.
Local laws and regulations directly affect your ability to operate and grow. That makes this a critical step for every market analysis, especially if you’re looking to expand. Broadening your service area to a new city or county often comes with a whole new set of regulations, so make sure you fully understand what you’re signing up for before jumping in.
Online review sites and listing platforms can provide plenty of insight, not just into how your competitors are performing, but also what renters in your area are looking for. Look at the most common complaints or points of praise and make sure that your business is excelling in those areas. Google, Yelp, and Facebook may seem like the most obvious places to look, but don’t forget about forum sites like Reddit.
Sites like Apartments.com, Redfin, and Zillow also reveal how properties are being marketed, what features are being emphasized, and what prices other property managers are asking.
A rent comparison helps you understand what local renters are paying and what they expect for that price. Many businesses run comps every 30-90 days in order to make sure their properties are priced competitively but fairly.
Start by determining how wide you want your analysis to be. You’ll typically want to focus on properties that are similar in size, condition, and amenities in order to get the most accurate picture. Check listings across the major trusted listing sites, but also check local classifieds.
Rent isn’t the only expense that residents pay each month, so it shouldn’t be the only piece of your price analysis. Make sure that you’re digging into factors like utilities (and whether or not they’re included), parking, pet fees (one-time or monthly), and amenity access when comparing rent prices. Look for other lease-enrolled services like Resident Benefits Packages, too. These added costs can influence how residents perceive overall affordability and what they’re willing to pay for base rent.
It’s important to run rental comps frequently because of seasonal fluctuation. Depending on your market, you may see larger or smaller seasonality. For example, if you’re in an area with a lot of students, demand is going to be higher in August and September than in April or May. Other factors are more consistent across geographies, like a decrease in demand around the December holidays. Make sure that you’re adjusting your pricing to match peak vs. off-season demand.
Make sure that you’re considering the property’s current condition when evaluating pricing. If you’ve renovated or upgraded things like appliances, flooring, or amenities, make sure you’re factoring that in. Even small things like higher quality finishes can justify premium rent prices and attract more qualified residents who are willing to pay a bit more.
Remember, the market changes constantly, and so should your pricing. Revisit comps regularly and be open to adjustments, even if it means decreasing prices. Demand, competition, and resident feedback are just a few of the factors you should be keeping tabs on.
Tools like Rentometer can offer valuable insights into prices, but remember that they’re only one piece of the puzzle. Be sure to pair them with real-time feedback from showings and applications to fine-tune your pricing strategy.
Raw information is all well and good, but you need to be deliberate about how you turn it into an actionable business strategy.
Compare your rental rates to local averages, factoring in amenities, property condition, and service quality. Make sure that you’re using rent comparison data to identify opportunities to raise rates responsibly. When you list your properties, make sure to highlight premium offerings like Resident Benefit Packages or renters insurance, which can improve resident satisfaction and justify higher rent.
Remember, the goal is to remain competitive but fair, and make sure you’re doing your fiduciary duty to your clients.
The insights you gather should all inform how you present your company to the market. Tailor listings, website copy, and outreach to reflect what local renters care about most, and emphasize features your analysis shows are in high demand—like location, pet policies, or energy efficiency. When pitching yourself to prospective clients, position your services clearly against the competition. Don’t be afraid to brag a bit if you have stronger owner reporting or better resident perks.
Demographic and demand data can help you spot market gaps between what residents want and what you and your competitors are delivering today. Look for emerging neighborhoods or underrepresented segments, especially those with a growing population of renters, to capture growth before your competitors.
Be sure to look at yourself in comparison to other PMCs serving the same areas that you are. Compare occupancy rates, pricing, and resident retention rates to see where you stack up and how you can improve. This can also help inform your service offerings, staffing priorities, and pricing.
All of this data is music to your investors’ ears. Tailor your owner reports to the needs of your different investor personas, like growth-focused investors, passive landlords, or institutional clients. Be sure to focus on the metrics that matter most, like vacancy rates, rent collection, maintenance turnaround times, and retention rates.
Once you have a more comprehensive understanding of your market, you can start to use value-added offerings like air filter delivery, credit reporting, and pest services to stand out. These can help improve resident satisfaction and retention while also decreasing the workload on your team.
For example, according to AppFolio’s 2025 Renter Preferences Report, 71% of surveyed renters said that lease-attached resident services would be important to them when evaluating a new rental home, but only 42% reported having those services available to them. That’s a big opportunity to fill the gap and set your company apart.
If you want to see how a Resident Benefits Package can help you support next-level service, schedule a call with a local expert today.