The property management industry stands at an important moment in its technological evolution. While AI has been making waves across many sectors, its adoption in property management has been measured and strategic. According to the National Apartment Association (NAA)’s latest Industry Pulse report sponsored by AppFolio, most companies began their AI journeys within the past five years, with increased focus and implementation occurring in the last two years.
Current State: Careful Steps Forward
The current rate of adoption reveals a cautious yet promising approach. Marketing and leasing currently lead the way in AI implementation, where virtual assistants and chatbots have become increasingly common for initial customer interactions. However, the weighted average of AI usage across all operational functions remains below average, ranging from 1.7 to 2.4 on a 5.0 scale.
What’s particularly telling is that 54% of the nearly 1,000 property management industry professionals surveyed have no immediate plans for full AI adoption. This isn’t necessarily resistance to change — rather, it reflects a thoughtful, measured approach to integration. Companies are choosing to implement AI solutions selectively, focusing on areas where they can achieve the most immediate impact while minimizing disruption to existing operations.
Tangible Benefits Driving AI Adoption
Despite the careful pace of implementation, early adopters are reporting significant benefits.
According to the data:
- Property management teams are saving up to 10 hours per employee per week.
- Lead-to-move-in time has decreased by 4-7 days.
- Conversion rates have improved by 10-20%.
- Call volumes have decreased by up to 10%.
- Resident satisfaction has seen a 5% improvement.
- Retention rates have increased by 15%.
AI allows property management teams to focus on what they do best: building relationships with residents and solving complex problems that require a human touch.
The Road Ahead: AI’s Evolving Role
Industry leaders are optimistic about AI’s future in property management while remaining pragmatic about implementation challenges. In the short term, expect significant investment in large language models and a focus on integrating existing systems. Property management companies are particularly interested in AI applications for financial operations, accounting, and human resources — areas that traditionally require significant manual effort.
Looking further ahead, AI is expected to help level the playing field for smaller property management companies, potentially transforming the competitive landscape. The technology could be particularly beneficial for single-family rental housing, where managing dispersed properties has always been a unique challenge.
Importantly, while AI is expected to reshape staffing, it’s not anticipated to eliminate jobs. Instead, roles will evolve to become more specialized and customer focused. As one industry leader noted in the report, “Office staff can focus on what matters and work on the ‘culture’ of the property.”
The Call for Industry Collaboration
A recurring theme in the report is the need for greater collaboration around AI adoption. Industry leaders are calling for more transparency, sharing of best practices, and industry-wide standards for AI implementation. This collective approach could help address common challenges such as system integration, data privacy, and the shortage of team members with AI proficiency.
Ready to dive deeper into the current state and future possibilities of AI in property management? Check out NAA’s Property Management Industry Pulse: Artificial Intelligence for detailed, data-backed insights to learn how your peers are navigating the AI landscape and to position your company for success in the evolving property management industry. You can find the report here.