Lessons From 4 Property Management Companies That Successfully Scaled Their Portfolios
Key Takeaways
Centralize Systems and Data: Use a single platform to manage maintenance, tracking, and communication in one place.
Leverage Integrations: Utilize a central platform with curated proptech tools to offer customized services.
Implement Automation: Use AI and automated workflows to increase efficiency and improve employee retention.
Simplify Technology: Focus on easy-to-use software to reduce training time and allow teams to master the basics.
Managing diverse property types (single-family, commercial, affordable, multifamily) presents significant challenges in record-keeping, maintenance, finance, and compliance. According to the 2023 NAA Property Management Industry Pulse (sponsored by AppFolio), operational efficiency is the biggest challenge for property management companies of all sizes.
To overcome this, a comprehensive technology solution is key. Below are the top four lessons from companies that successfully scaled their portfolios and boosted efficiency simultaneously.
1. Use a Centralized System of Record and Management
Centralizing your platform and data directly addresses common pain points and allows for easier insight discovery:
Key Pain Points Reduced:
Managing maintenance costs and requests.
Tracking projects and vendors.
Performing labor-intensive management processes.
Managing communication (residents, owners, vendors).
| Company | Portfolio Size & Type | Pre-Centralization Challenge | Post-Centralization Benefit |
|---|---|---|---|
| Atlas Real Estate | 6,500+ units across 8 states (Single-family, multifamily, commercial) | Communication via scattered emails and calls made tracking correspondence difficult. | Centralized communication for maintenance requests, work orders, and vendor correspondence. |
CEO Quote (Tony Julianelle, Atlas Real Estate): "AppFolio’s ability to centralize that communication in one place makes it clear to the resident what’s happening and makes it clear for us on what we need to do.”
2. Choose Reliable Integrations That Allow for Customization
While customization can add complexity, a centralized platform with strong integrations makes offering tailored services for owners and residents more manageable, enabling successful scaling.
| Company | Portfolio Size & Type | Goal/Challenge | Technology Solution |
|---|---|---|---|
| Nomad | 3,000+ units across 12 states (Single-family, condos, community associations) | Offering greater flexibility and the "very best experience" for renters and owners. | A centralized platform (AppFolio) with a large selection of best-in-class proptech integrations to layer on curated solutions. |
CEO Quote (PJ O’Neil, Nomad): “The Nomad platform is a ‘choose your own adventure’ in a way. You can have a full-service experience... or you can choose a DIY experience... All of that experience is powered by AppFolio Property Manager.”
3. Use Automation To Increase Efficiency
Leveraging automation and AI frees up teams to focus on important tasks, speeds up processes, and improves employee retention.
| Company | Portfolio Size & Type | Need/Challenge | Automation Benefit |
|---|---|---|---|
| Evernest | 32,000+ units (Single-family, community associations, multifamily) | Needed a system to prioritize efficient processes and record-keeping that was easy to train new staff on for rapid scaling. | Automation for business processes, training, and day-to-day management increased employee effectiveness and retention. |
CEO Quote (Matthew Whitaker, Evernest): “We used to spend too much time training employees on the old system... But with AppFolio, everything is automated, and we can instead focus on the right things.”
4. Make Training and Technology Easier for Team Members
Focusing on a simplified, single system ensures the basics are handled well, which benefits the team, owners, and residents. Simple technology reduces training time and complexity in the hiring process.
| Company | Portfolio Size & Type | Previous Challenge | Simplified Technology Benefit |
|---|---|---|---|
| MD Squared | 4,000+ units | Previously used two complex systems requiring more in-depth training and specialist hiring, reducing efficiency. | A single, easy-to-use platform allowed for quick training of new hires and helped managers focus on perfecting the basics. |
CEO Quote (Michael Mintz, MD Squared): “It’s just about doing the basics really well, and when we do that, we serve the property owners and residents in the best way possible. And that’s one of the reasons that we like AppFolio a lot.”
Key Takeaway for Boosting Operational Efficiency
The right technology partner can help property management entities of all sizes:
Streamline systems.
Use AI and automated tools to save time.
Centralize data and communication in one place.
This approach addresses common industry pain points like poor operational efficiency, hiring and retention difficulties, and compliance management.