Published on October 15th, 2024
By Marc Frenkiel

Artificial intelligence (AI) is reshaping industries across the board, and property management is no exception.

To shed light on the dynamics of the AI revolution, AppFolio sponsored the National Apartment Association’s 2024 Property Management Industry Pulse: Artificial Intelligence. This comprehensive study, combining insights from nearly 1,000 property management professionals, offers a panoramic view of the industry’s current state of AI adoption, its challenges, benefits, and why the future looks brighter than ever. 

Here’s a sneak peek at what you’ll find in the report:

The More Things Change, the More They Stay the Same

The survey findings reveal that operational efficiency remains the top challenge for property managers in 2024, maintaining its position from previous years. This persistent focus on streamlining operations and reducing inefficiencies has naturally led to increased interest in AI solutions. But how are operators using the technology to optimize their day-to-day operations?

Short-term Investment, Long-term Transformation 

According to industry participants themselves, we’re on the brink of an AI investment boom in property management. In the short term, expect a focus on generative AI (which includes large language models) aimed at enhancing customer service, automating communication, and improving document processing. The long-term outlook is even more transformative.

Survey respondents expect AI to proliferate across all operational areas, especially in financial, accounting, and HR functions. This aligns with the broader evolution of AI, which is seeing rapid advancements in the technology’s ability to handle complex, number-heavy tasks.

Interestingly, 70% of respondents believe AI will increase competition among property management companies.

 

 

This suggests that AI could either make it easier for new entrants to challenge established players or intensify competition among existing companies through innovation, efficiency, and cost reduction.

Measuring Success 

While the full impact of AI on property management is still unfolding, early adopters are already seeing tangible benefits. The report shows impressive figures:

• Up to 10% savings in payroll
• A reduction of 4-7 days in lead to move-in time
• A 10-20% improvement in conversion ratios
• Time savings of up to 10 hours per week per employee 

 

As AI adoption continues, measuring success will be crucial. The report indicates that overall operational efficiency tops the list of key performance indicators (KPIs) for AI success, followed by resident satisfaction, speed of response time, and cost savings.

The Human Touch: The Irreplaceable Element in the AI Era

The report concludes with some valuable advice for property management leaders: Embrace AI, but do so thoughtfully and strategically.

Industry leaders interviewed for the report emphasize the need for open-mindedness toward AI opportunities coupled with strong change management skills. There’s a growing demand for property managers who can bridge the gap between traditional real estate knowledge and technological savvy.

Some of the AI users who participated in the survey also understand that AI is a tool rather than a strategy itself. This is a crucial perspective as the industry evolves. While AI can drive efficiencies and unlock new possibilities, it’s the human touch — the strategy, the purpose, the ethical considerations — that will ultimately determine success. 

Are you ready to dive deeper into the AI revolution? The full NAA Property Management Industry Pulse: Artificial Intelligence, sponsored by AppFolio, offers a wealth of data and insights to help you better understand this exciting new frontier. Check out the report today and position yourself at the forefront of the AI revolution in property management.