Automation May Help Property Management Profits
Turning to AI: Property management firms, facing declining profits, are using technology to automate their operations as they struggle to fill job vacancies. With property owners feeling the pressure to maintain profits, managers are seeking cost-cutting measures. While layoffs have not been significant, automation is becoming a popular option among managers to keep costs in check.
Work stress: Property management work can be challenging as employees frequently encounter challenging tenants, unexpected repairs, and monotonous tasks, leading to negative impacts on their mental and physical health, according to the National Apartment Association. This, coupled with the demanding nature of the job and relatively low salaries, makes attracting and retaining talent difficult.
Looking for a solution: Despite investing in automation, Equity Residential (EQR), UDR (UDR), and Essex Property Trusts (ESS) saw an increase in year-over-year property management expenses. To address this issue, the companies have doubled down on their technology investments, enabling them to improve their operations by leasing units faster, streamlining maintenance, and appealing to tenants who are willing to pay up to $55 per month for smart home automation. These technological advancements also result in landlords saving up to 30% on utilities and staffing expenses.
Invasion of the chatbots: Chatbots like ChatGPT are all the rage these days. Property management companies hope they’ll help streamline customer service and maintenance requests. With 56% of property traffic occurring after hours, adding a chatbot response can save almost 50 hours per week for leasing staff while reducing marketing spend. Apartment REIT UDR decreased leasing staff by 40% and improved customer satisfaction by 24% just by investing in chatbots. Meanwhile, 25% of tenants now find an apartment without setting foot in it, highlighting the value of digital tours and outreach.
➥ THE TAKEAWAY
Adapt and adjust: Property management firms that embrace new technologies and provide flexible work arrangements for their employees are better equipped to address the industry’s persistent labor challenges. Given the industry’s high-pressure environment and low employee retention, automating mundane tasks could improve job satisfaction and foster a more contented workforce.