For years, operational efficiency has topped the list of challenges for property management companies — and in 2025, it still does. But according to new research, that relentless pursuit of efficiency might actually be what’s holding the industry back.
NAA’s latest AppFolio-sponsored research report, The Performance Ecosystem, reveals that while property management teams are working hard to stay efficient, they’re spending most of their time on the wrong kinds of work.
The survey found that property management professionals devote 42% of their week to routine operational work and 24% to reactive tasks — things like data entry, paperwork, and putting out fires.
That means two-thirds of the average workweek is spent keeping the business running but not necessarily moving it forward.
When asked how they want to spend their time, respondents said they’d rather focus on more strategic planning and stakeholder relationships — the areas that drive long-term value and customer satisfaction. But operational overload keeps getting in the way.
Technology is meant to make things easier — but for many teams, it’s doing the opposite. Nearly 67% of property management professionals use three or more software logins per day, and 60% believe consolidating their data and tools into a single platform would improve performance.
The good news? Among those who’ve already unified their systems, two-thirds report strong improvements in performance — proof that seamless integration is the key to real efficiency.
AI is quickly becoming part of daily operations across the industry. More than 75% of companies using AI say it’s improved their performance — whether by helping teams draft communications, analyze data, or automate routine workflows.
Still, the report shows that most operators are just scratching the surface. Only 44% can easily access predictive data that helps them plan ahead, and 47% say prescriptive analytics — the kind that tells you what to do next — are still out of reach.
The next step for the industry is clear: Use AI to guide decisions, not just automate tasks.
One of the most revealing findings from the report is that companies that invest in team training and satisfaction also see improvements in resident experience. However, only 35% of companies survey their teams, even though 87% of those who do report better morale and engagement.
When teams are supported, residents notice — and retention, revenue, and reputation all improve.
The Performance Ecosystem paints a clear picture: The property management industry is ready to evolve from efficiency-driven to performance-driven. To get there, companies need to unify their systems, empower their teams, and make AI part of everyday decision-making.
Check out the full report for the complete findings and data breakdowns and discover what’s really driving property management performance — and how your business compares.
Sr. Industry Writer
Marc built his career as a copywriter in the advertising world of New York City — and then its leafy suburbs. He later took a hiatus from the industry to work at a real estate investment and management firm, where he also gained exposure to the firm’s venture capital business. At AppFolio, Marc draws on this unique combination of experiences to craft content that resonates with property management and investment professionals alike.