How AI is helping property managers meet a challenging market
One factor is emerging as a game-changer: artificial intelligence (AI). According to AppFolio’s 2025 Property Management Benchmark Report, AI adoption has surged, with more than one-third of property managers using it to streamline operations, better communicate with residents, and make data-informed decisions. Those leveraging AI aren’t just automating tasks—they’re gaining a strategic edge by having more time to focus on what matters: connecting with residents and growing their businesses.
These insights are just the tip of the iceberg. Based on survey results from over 2,000 property management professionals, the 2025 Benchmark Report reveals four key trends shaping the future of property management.
1. The rise of AI and the new property management landscape
Challenging occupancy retention rates, changing resident needs, accelerating technology: these are the primary factors shaping the property management landscape. To keep up with these changes, efficiency is key. Forty-eight percent of property managers are looking for opportunities to reduce cost year-over-year, and 42% want to streamline maintenance operations. From operationalizing leasing and maintenance to improving resident communications, property managers are turning to AI for a new level of efficiency.
As AI tools become more sophisticated, property managers who embrace automation and data-driven decision-making are better positioned to improve efficiency, reduce costs, and stay competitive. Thirty-four percent of property managers are adopting AI—up from 21% last year—to increase operational efficiency (66%) and use data more effectively (52%).
Communication, maintenance and leasing continue to be effective use cases for AI, yielding efficiency and time savings for both property management teams and residents.
2. Resident experience is now crucial
Despite the consistently low supply of affordable housing nationwide, a surge in new rental housing in certain markets is intensifying competition, making it harder to maintain occupancy rates. In fact, 43% of property managers now rank maintaining high occupancy as a top challenge, up from 35% last year. With rent growth stalling and vacancy rates climbing to 6.8%, property managers must prioritize resident satisfaction to attract and retain renters.
To overcome the challenge of occupancy retention, property managers will need to focus on delivering a personalized resident experience that goes beyond the basics. Flexible lease options, financial services, and elevated move-in support help meet the diverse needs of today’s renters. In addition, convenience is becoming a major differentiator, with AI-powered maintenance scheduling, self-service leasing, and smart home technology streamlining daily living.
Among the 34% of property managers leveraging AI, some of the key results include improving renter communication (60%) and boosting renter satisfaction (51%). In a competitive market, these resident-first strategies aren’t just nice to have—they’re essential for long-term retention.
3. Technology is driving security & fraud prevention
As applicant fraud becomes more widespread, advanced technology is now critical to prioritize security. Forty percent of property managers are more worried about fraud than last year, while 37% are more concerned about protecting their and their residents’ data. To prevent lost revenue due to fraudulent applicants, property management teams must implement consistent and efficient screening and fraud prevention technology. And to guard against payment fraud and theft of sensitive financial information, property managers must implement new security initiatives.
Cybersecurity solutions and secure property management technology are evolving the industry’s approach to fraud prevention and data protection. On the payment side, employing multi-factor authentication strategies and using secure payment platforms will help protect the safety of transactions. And on the application side, property managers need to apply proactive fraud detection strategies, such as identity verification and income verification solutions that can flag fraudulent application information. The right strategy should include these high-priority security initiatives while still prioritizing a smooth and flexible experience for payments and applications.
4. Industry players are adapting for growth
Despite economic pressures, property managers remain optimistic. Seventy-five percent anticipate revenue increases, and 65% expect NOI growth. To make this growth a reality, property managers need to understand the direction of the market and adapt. Those who embrace AI and prioritize operational efficiency, security, and resident experience will be best positioned to thrive. The companies that face these trends head-on today will be tomorrow’s industry leaders.
Stacy Holden is the VP and Industry Principal at AppFolio.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners. To contact the editor responsible for this piece: [email protected].
