Introduction
Within the current economy, there is a great need for property management organizations engaging in property rentals. Due to the high growth in the rental sector, a number of investment firms have acquired a large inventory of housing stock in order to place on the rental market (Popper, 2013). However, these firms are not adequately equipped to manage these properties on their own, and require the use of property management agencies to handle the day-to-day affairs.
Body
As such, I propose the creation of a property management department within the organization to address this new market opportunity. The current market has shown that a large percentage of the American housing market prefers to rent, as it is seen as a less financially heavy method of maintaining a residence. Furthermore, the 2008 boosted the demand for rental housing due to it being a cheaper alternative than owning and maintaining a home. There is a great deal of profit to be obtain in this area of business, as current forecasts demonstrate that the demand for new housing will continue to grow as the population increases. Establishing leadership in this sector is crucial, as this will draw in additional customers and allow for future growth.
Conclusion
Due to the previously established trends, it is in the best interest of the organization to engage in this area of business. As such, this would involve the establishment of a dedicated department to dealing in the market. Through such efforts, it would be possible to obtain a lead in this market, and to increase the long-term growth of the organization.
- Popper, N. (2013, June 3). Behind the Rise in House Prices, Wall Street Buyers. New York Times.
