Why Today's Rental Market Demands Smarter Strategies: Analysis by John Wilhoit, Property Management Expert

Real estate expert John Wilhoit tackles rising costs, interest rates, and tech’s impact on property management. A must-read for investors and operators navigating today’s turbulent U.S. market

"Rising costs, talent shortages, and soaring interest rates are reshaping the U.S. property management landscape—and only the most strategic operators will thrive," warns John Wilhoit, a veteran real estate executive with decades of experience.

In an exclusive interview, Wilhoit pulls no punches as he dissects the industry’s toughest challenges, from squeezed profit margins to tech’s growing role in modern operations. "You can’t just cut your way to success anymore," he insists, stressing the need for smarter, data-driven management.

As demand shifts and investors hunt for hidden opportunities, Wilhoit’s insights offer a roadmap for navigating today’s turbulent market—where adaptability and operational discipline separate the winners from the rest.

What are the biggest challenges property managers face in the U.S. today?

The number one challenge is maintaining operational efficiency amid rising costs. Labor is more expensive, insurance premiums are skyrocketing, and utility costs are refusing to cooperate. Add to this a talent shortage, and you've got operators doing more with less—fewer staff, tighter budgets, and escalating expectations.

Let's be clear: property management isn't getting any easier. And while some still think you can "cut your way to success," the truth is you can't slash your budget into profitability. You must be strategic—control what you can and maintain a high service level.

How are rising interest rates affecting the U.S. housing market?

Higher interest rates are rewriting the script. It's no longer about "how fast can we close." It's about "can we make the numbers work?" For buyers, it's reduced affordability—plain and simple. For sellers, cap rates are adjusting, and values are softening unless NOI growth can keep pace.

If you're sitting on an adjustable-rate mortgage or considering a refinance, the pain is real. Institutional money is still in the game, but underwriting is more conservative. Deals that would've cleared in 2021 are now stalled or dead. The era of cheap money is over—and that changes everything.

What role does technology play in modern property management?

Technology is no longer a luxury; it's a foundational element. From automated rent collections to AI-driven lease renewals and digital maintenance tracking—tech saves time, reduces friction, and creates clarity. But let me be clear: tech doesn't manage properties—people do.

The best operators pair people and platforms with purpose. You still need a seasoned manager who knows when to bend policy to retain a tenant or how to pivot during a crisis. Tech is a multiplier—but only if you already have good processes in place.

How is the demand for rental properties changing across major U.S. cities?

Demand is shifting. It's not just about metro versus suburban anymore—it's about flexibility, affordability, and functionality. Residents want work-from-home space, innovative layouts, and reasonable rents. Hot markets like Austin and Phoenix have cooled slightly while overlooked second-tier cities are gaining momentum.

Also, don't ignore the flight-to-quality: renters may pay more, but only for a clear value proposition. If you're managing a tired property with outdated finishes and high rents, expect high turnover. Today's renter is picky—and rightfully so.

What are the key responsibilities of a property manager?

Think of a property manager as a CFO, HR director, customer service lead, and maintenance supervisor—all rolled into one. Their job is to preserve NOI, optimize resident experience, enforce compliance, and protect the asset. In short, they operate where the rubber meets the road.

There's no such thing as a "hands-off" property manager—not if you want to succeed. The best ones walk the property, read their reports, listen to residents, and understand the bigger financial picture. This is a business of detail and discipline.

How can investors find good real estate opportunities in the current U.S. market?

Start by throwing out the idea that good deals are obvious—they're not. In a high-rate environment, your edge comes from operational insight, not price alone. Look for inefficiencies—such as poor management, under-marketed assets, or overlooked markets.

Study rent rolls, not just listing brochures. Also, consider the role of local tax policy, insurance volatility, and demographic trends. And, for the love of capital preservation, please avoid "no money down" gimmicks.

Good deals still exist, but you have to dig—and you better know how to operate once you close.