Published on October 31st, 2025
By Kwame Donaldson

This market update analyzes how well property managers serve U.S. metro areas and the factors that influence this level of service. We use a star-rating system based on units per employee to define high-service and low-service markets, observing that higher service levels are associated with larger apartment complexes and increased domestic migration. Labor-saving technology offers new avenues for property managers to improve service in all markets.

Measuring Market Service Level: Rental Units per Employee

Property managers in Salt Lake City, Utah, provide a very high level of service to their residents. With 171,000 rental units, the metro area ranks as the 48th largest rental market in the U.S., according to 2024 U.S. Census Bureau estimates. In addition, the Bureau of Labor Statistics (BLS) reported in Q4 2024 that 4,882 workers in the Salt Lake City area were employed in residential property management, which includes both fee managers and owner-operators. This translates to an average workload of just 35 rental units per employee, the second-smallest ratio among the 50 largest rental markets in the U.S. (Table 1), and it allows for more dedicated attention to each unit.

Property managers in the New Orleans, Louisiana metro area face a more challenging assignment than their counterparts in Salt Lake City. Despite serving a nearly equal-sized rental market, property management companies in New Orleans have fewer than half the employees, meaning each worker manages an average of 77 rental units. It’s important to note that the actual workload for a typical property manager in both cities is higher than these averages, as BLS employment statistics encompass all office personnel — including administrative, accounting, and sales teams — whether or not they directly interact with properties or residents.

The workload for property managers in New Orleans significantly exceeds the U.S. average of 54 units per employee and ranks among the highest nationwide. Therefore, we classify New Orleans as a one-star market. Conversely, Salt Lake City is a five-star market because it is among those cities with the smallest unit-to-employee ratios. The star-rating system is based on the assumption that a lower unit-to-employee ratio enables property managers to provide a higher level of service.

Highest Service Levels in Largest Rental Markets

Using the star ratings in Table 1, this report examines why property managers in five-star markets employ proportionately more personnel than those in one-star markets. Figure 1 shows that high-service, five-star metro areas have more than twice as many rental units as low-service areas. This difference is accentuated because New York City, the nation’s largest rental market by a wide margin, is among the five-star markets.

Figure 1’s pattern could have several explanations. For instance, a property manager in a large rental market might oversee fewer units due to the logistical difficulties of servicing numerous properties amid traffic congestion and urban sprawl. This theory, however, has limited support, as only four of the 10 cities identified in a recent report as having the nation’s worst traffic also rank among the top 10 cities for service levels.

An alternative potential explanation for the finding in Figure 1 is that major cities typically impose more onerous and numerous housing laws, rent control ordinances, and building codes. To ensure compliance and manage legal issues, property managers in the largest rental markets might require a larger, more specialized workforce. But this explanation is contradicted by the fact that three landlord-friendly Florida cities are among the top 10 markets in service levels. Property managers in Florida do not need a vast team of experts to navigate the state’s less stringent housing regulations.

The higher concentration of property managers in major metropolitan areas might not primarily stem from the size of these rental markets. Instead, it could be more closely tied to the types of properties and residents typically found in large cities. The next two sections of this report further examine this idea.

Larger Buildings Place More Demands on Property Managers

Figure 2 shows that metropolitan areas where property managers are most concentrated have a higher share of residential units in large buildings. In five-star metro areas, 19% of residential units are in structures with 20 or more units, compared to just 8% in one-star metros.

Managing large multifamily properties demands a larger team. For example, property managers who manage high-rise apartment buildings often employ concierges or doormen to handle guests, deliveries, and resident inquiries, a practice that is less common in smaller properties. Security personnel are also more prevalent, and additional employees may be required to mediate disputes among residents who live in close proximity to one another.

The higher density of residents also leads to more frequent maintenance issues and a greater need for regular cleaning of common areas such as lobbies, elevators, and gyms. This typically requires a larger on-site maintenance and janitorial crew. Ultimately, a larger team is necessary to cater to the specific needs of residents in big multifamily properties.

In contrast, one-star markets have a larger proportion of residents living in single-family homes. Many of these rental units are owned and managed by individual investors, often with no employees at all. Property managers in low-star markets can oversee more units because low-density properties typically lack the amenities and complexities associated with large, multifamily structures.

Migration Inflows Boost Market Service Levels

Beyond building size, another key factor influencing property manager service levels is domestic migration (Figure 3). The share of the population born in a different state is about 10 percentage points higher in markets with a larger concentration of property managers. This suggests a strong relationship between areas with a significant influx of migrants and a robust property management sector.

High rates of domestic migration contribute to increased tenant turnover. Unlike homegrown residents who tend to settle near their childhood communities, out-of-state transplants often choose an initial neighborhood upon arrival and then relocate as their social network expands. Managing this continuous flow of new residents — from marketing units and screening tenants to handling lease agreements — is labor-intensive and requires a larger leasing and administrative team.

Furthermore, out-of-state migrants typically rely on the neighborhood expertise of property managers. Newcomers may postpone purchasing a home due to unfamiliarity with local services such as repair technicians, landscapers, and insurance agents, which are all vital for homeownership. A trusted property manager is uniquely qualified to offer this vital assistance.

Property Managers Economize on Service in Low Rent Markets

Though property managers offer the highest level of service in metropolitan areas with the highest median rent (Figure 4), the most striking difference in average rent is between one-star metro areas and all other markets. This suggests that the level of service provided by property managers is generally independent of the amount of rent paid, except when these payments are well below average.

Residential property management firms can offer top-tier service in almost any market, even those with mid-tier rent payments, thanks to manageable employee wages. According to the BLS, the average annual salary for an employee in residential property management is $69,700, nearly 20% below the $85,200 average for all employees in the broader Real Estate and Rental and Leasing sector. This favorable wage structure enables the industry to strategically allocate workers where they are most needed, generally irrespective of the market’s median rent.

Turn Efficiency Into Performance

AppFolio’s AI technology helps teams across all service levels move beyond task execution to measurable outcomes — faster response times, higher conversion rates, and greater resident satisfaction — whether they’re managing a scattered portfolio or operating large, complex communities. By offloading routine work to intelligent automation, teams regain bandwidth to focus on the high-value work that matters to residents, owners, and investors.

Elevate the Property Management Experience With Resident Onboarding Lift

Instead of stitching together point solutions, Resident Onboarding Lift from AppFolio and Second Nature integrates high-value offerings, including on-demand pest control, air filter delivery, credit building tools, identity protection, parking and storage, and more, directly into a personalized onboarding experience for each resident. The result is transparency that drives action: Lease obligations and included services are clear from day one, tasks such as filter changes or insurance tracking stop consuming your workday, and residents get convenient, cost-effective ways to enjoy their living experience.

And the kicker? These high-value services don’t just drive savings and convenience for residents; they also unlock a significant recurring revenue stream for operators while protecting assets (for example, fewer avoidable HVAC or pest-related issues) and improving retention through a better move-in and living experience. 

In short, a unified platform with built-in services helps teams manage less and perform more, aligning daily work with the outcomes your stakeholders value most.