Property managers are juggling elevated prices, calls for from house owners, and residents who count on prompt responses. Perhaps you’ve simply completed negotiating with a vendor, solely to get a late-night upkeep request from a resident. Sound acquainted? In that case, you’re not alone.
Throughout the business, property administration groups are feeling the squeeze—striving to do extra with much less, whereas conserving each purchasers and residents completely happy. The strain to spice up effectivity whereas delivering stand-out service has by no means been increased.
These pressures have pushed the variety of property administration corporations utilizing AI instruments to triple, from 20% to 58% within the final yr alone. However we’re nonetheless in the beginning of the transformation that AI will kick off inside actual property, with quite a lot of potential nonetheless untapped.
On this submit, we’ll share the 5 prime property administration business developments from our 2026 Business Report. We’ll discover how property administration corporations are:
- Reducing prices with expertise as profitability pressures improve
- Increasing the enterprise whereas sustaining a excessive stage of service
- Turning a slowing gross sales market into a chance to achieve purchasers
- Differentiating themselves from the competitors by means of upkeep
- Displaying their worth to house owners by attracting and retaining nice residents
Development #1 – Know-how: Rising Smarter, Leaner, and Sooner
Abstract: Property managers are targeted on adopting new instruments and higher utilizing present ones to economize and increase income.
Let’s face it: Prices are nonetheless rising, although not on the charge they as soon as did. In accordance with Buildium’s surveys, bills have elevated for 93% of property administration corporations over the previous yr. For property managers, it’s primarily the prices of distributors, supplies, and enterprise insurance coverage which have gone up; whereas for rental house owners, it’s property taxes and insurance coverage.
In consequence, everybody’s in search of methods to work smarter, not tougher. When our survey requested how corporations plan to chop prices within the coming yr, property managers’ most typical response by far—chosen by 50% of survey respondents—was adopting new instruments and higher utilizing present ones to enhance effectivity. As well as, 21% of respondents mentioned that implementing new expertise options has been a profitable a part of their income technology technique prior to now.
AI is the large story right here. Final yr, simply 20% of property administration corporations informed us they had been utilizing synthetic intelligence inside their companies. Within the span of a single yr, that quantity has elevated to 58%, which means {that a} majority of property administration professionals are augmenting no less than one enterprise course of with AI. Most frequently, property administration business professionals are utilizing AI to assist them craft property descriptions and buyer communications—however advances in expertise will quickly make it attainable for corporations to look past giant language fashions like ChatGPT and really reinvent the way in which they work with AI.
Development #2 – Development: Scaling with Intention, With out Sacrificing Service
Abstract: Property managers are targeted on sustainable development by means of environment friendly operations and excessive service requirements, balancing growth with high quality and profitability.
Within the coming yr, three-quarters of property administration corporations plan to broaden their portfolios. Nonetheless, third-party managers could discover that prime property costs, elevated rates of interest, rising property prices, and financial uncertainty have set some rental house owners again on their heels.
This can be one of many the reason why we see a disparity between how a lot development property administration corporations have deliberate, and the way a lot development they really achieved: 75% plan to develop within the subsequent yr, however simply 55% grew over the previous yr. With 18% of property administration professionals reporting that encouraging purchasers to amass new properties has been a number one development technique for his or her firm, this actuality highlights the significance of setting sensible growth targets and diversifying your sources of portfolio and income development.
As well as, a major problem for rising corporations is bolstering the standard of their customer support as they tackle extra doorways. That is particularly essential contemplating that referrals from present purchasers are property administration corporations’ #1 development technique. The suitable expertise will help corporations bridge the hole as they develop their portfolios sooner than they’re in a position to broaden their groups.
Development #3 – Homeowners: Leaning into Market Shifts to Drive New Enterprise
Abstract: Property managers foresee a continued improve in rental market rules and a slowdown within the gross sales market, doubtlessly main extra Unintentional Landlords to hunt out their companies.
Demand is rising for consultants’ help in working properties in compliance with native rules: In 2021, simply 21% of rental house owners mentioned that they employed a property supervisor because of this, which has risen to 33% as of 2025, in response to Buildium’s surveys. As new tenant protections go, rental house owners’ notion of the chance concerned in working their rental properties themselves will rise, motivating them to achieve out for professionals’ assist.
As well as, financial uncertainty and elevated property costs and mortgage charges are leading to a stark disparity between the variety of properties on the market and the variety of consumers available in the market. When properties aren’t promoting for costs that enable consumers to recoup their funding, some owners select to transition these properties from for-sale housing to rental housing. It’s underneath these circumstances that Unintentional Landlords come up—and since they’re the group most probably to rent skilled administration for his or her property, property managers see these circumstances as a chance to select up new purchasers.
Greater than some other issue, rental house owners rent based mostly on the customer support expertise that your organization delivers: 74% of respondents to Buildium’s most up-to-date proprietor survey informed us that that is their major consideration when selecting a property administration firm. In in the present day’s enterprise surroundings, this implies integrating expertise with the human contact to fulfill particular person purchasers’ wants.
Development #4 – Upkeep: From Ache Level to Aggressive Benefit
Abstract: Property managers have a chance to distinguish themselves from the competitors and generate income by means of preventative upkeep companies.
Upkeep is a headache for everybody—house owners, residents, and managers alike. However it’s additionally an enormous alternative. 56% of rental house owners who work with a property supervisor to run their leases say they accomplish that to have an skilled’s assist with upkeep. Property managers can show their worth by easing rental house owners’ anxiousness over repairs of their properties—not solely by making emergency repairs, but additionally by conserving points from taking place within the first place by means of preventative upkeep companies.
Resident retention is one other approach wherein proactive upkeep will help property managers present their worth. 40% of renters who had been unsure about renewing their lease would keep put for one more yr if their property supervisor or landlord invested extra in sustaining the property, whereas 31% say they’d keep if their property supervisor or landlord had been extra conscious of upkeep requests. Total, residents mentioned they’d be extra influenced by their property supervisor’s strategy to upkeep than by the possibility to entry higher facilities or companies—making this a transparent space the place property managers can make investments to enhance occupancy charges.
Along with investing in preventative upkeep, how can property managers affect the anxiousness that each rental property house owners and renters really feel about upkeep—whereas conserving prices underneath management? Some companies shall be investigating bringing upkeep companies in home, with 15% of survey respondents saying that this can be a part of their plans to chop prices within the coming yr. With the expert labor scarcity persevering with, although it could be exhausting to recruit and retain nice upkeep workforce members, bringing upkeep in home can alleviate the problem of discovering high-quality distributors for each process that comes up.
Development #5 – Residents: Screening for Stability in an Evolving Market
Abstract: Tenant high quality stays property managers’ prime problem this yr, with tenant screening changing into an much more vital facet of the leasing course of.
Discovering nice residents is more durable than it as soon as was. The price of proudly owning and sustaining a rental property has elevated considerably, main many rental house owners to boost rents. However with rents set at increased costs, fewer renters are in a position to afford them, leaving simply 57% of renters in a position to pay all of their payments on time and in full proper now. In consequence, many property managers are struggling to seek out certified rental candidates to fill vacancies that come up.
In accordance with Buildium’s surveys, 61% of rental house owners who at the moment work with a property supervisor accomplish that as a result of they need an skilled’s assist in managing, attracting, and retaining residents. With rental house owners conscious of the challenges that administration corporations are dealing with on this space, property managers have the proper alternative to show their worth by discovering high-quality residents and retaining them over time.
When Buildium requested which instruments have supplied essentially the most worth to property administration corporations prior to now yr, tenant screening instruments had been the second-most well-liked consequence. Rental fraud is on the rise, with 75% of property administration corporations reporting a rise in fraud over the previous yr, in response to a research carried out by RealPage. This implies it’s vital that property managers use the most recent expertise to uncover credit score, felony, and eviction information and apply constant pointers throughout their pool of rental candidates.
Turning 2026 Property Administration Business Traits into Motion
In closing, listed here are 5 methods you’ll be able to implement these developments into your online business within the coming yr:
- Experiment with AI to streamline operations (whereas intently monitoring outputs), permitting your workforce to give attention to relationship constructing and development.
- Set sensible development targets and use expertise to keep up excessive service requirements as you broaden your portfolio.
- Leverage regulatory adjustments by positioning your companies as skilled options for compliance and supporting Unintentional Landlords.
- Spend money on preventative upkeep to scale back emergencies, increase resident retention, and stand out from rivals.
- Strengthen tenant screening with superior instruments to attenuate rental fraud and entice dependable residents.
The 2026 State of the Property Administration Business Report
Need sensible recommendation on implementing 2026 property administration business developments into your online business? You’ll discover it in Buildium and NARPM’s newest report, alongside the views of 5 property administration consultants. Obtain your free copy of our new and improved Business Report now.
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