The multifamily industry is facing a number of headwinds such as high operating costs, increased vacancy and stagnant rent growth. Property managers are leveraging artificial intelligence (AI) and focusing on recruitment and retention of workers as solutions. There’s also a strong emphasis on resident satisfaction, with the goal of providing top-notch maintenance and property events to help secure lease renewals.
In June 2025, operational expenses in multifamily assets were roughly 39 percent above where they were prior to the pandemic, according to commercial real estate data analytics firm RealPage. In the first quarter of 2026, three of the six apartment market regions that CBRE tracks posted negative year-over-year rent growth (Mountain, South Central and Southeast). The national vacancy rate was 4.8 percent, up slightly from a year ago but down 20 basis points from fourth-quarter 2025, according to CBRE.
Amid these pressures, the role of the property manager is vital in helping shape resident satisfaction and maximizing operational efficiencies.
Jim Cunningham, president of Marquette Management in Naperville, Illinois, says the multifamily industry is in a period of transition. “Operators are navigating higher operating costs, increased regulatory scrutiny and a more value-conscious renter, all while expectations for service and experience continue to rise,” he states.
“There’s a real opportunity for companies that focus on long-term asset performance, operational efficiency and resident experience,” continues Cunningham. “At the same time, insurance and tax increases along with workforce challenges require managers to be more agile and data-driven than ever before.”
Scott Berka, senior managing director of brand and customer experience at Charleston, South Carolina-based Greystar, says that the industry is navigating tension between scale and personalization. Residents expect quick responses, digital access and an experience that feels personal rather than transactional.
“Managing reputation, responding quickly and delivering a consistent experience across thousands of units are table stakes now,” says Berka. “Rent growth has been a headwind. With limited pricing leverage, operational efficiency is the lever, driving urgency around technology and AI to do more without adding cost.”
AI and human oversight
One way to address issues of scale is through AI and the automation of property management tasks. Greystar, which manages more than 1 million units across roughly 240 global markets, is investing in new technologies and AI across its operations, from leasing and resident communication to revenue management, maintenance and back-office support.
“The goal is always the same: Free up people to focus on the high-value, human interactions while technology handles the repetitive, rules-based work,” says Berka. “There’s a lot of noise right now about what AI can do, and the real work is separating what’s ready from what’s still aspirational.”
According to Berka, Greystar is piloting tools in a few key areas: AI-assisted leasing communication, intelligent maintenance dispatch and the utilization of large language models to help regional managers synthesize performance data faster.
“Greystar believes the most effective operators will be those who use AI to make their people smarter and faster, not the ones who try to eliminate the human element entirely. Residents notice the difference,” emphasizes Berka.
Governance is also a priority for the use of AI. “As these tools become more embedded in operations, the question isn’t just whether something works — it’s whether you can trust it, monitor it and whether it aligns with how you want to treat residents and teams,” explains Berka. “That discipline is what separates programs that actually scale from pilots that stall.”
While AI is already reshaping multifamily property management, it is not a “silver bullet,” says Roger Daniel, president and founder of Chicago-based Daniel Management Group (DMG).
“AI will not completely change a portfolio’s trajectory or turn around processes that are not working,” explains Daniel. “When used correctly, it can amplify processes, allowing teams to focus on higher-level and higher-priority items.”
Daniel offers leasing as an example of a property management task that AI can significantly enhance. Operators can deploy a “smart leasing” chatbot to answer frequently asked questions, schedule property tours and qualify leads.
“For AI to work effectively, humans must be involved in an oversight role,” states Daniel. “Thus, AI is not used to replace staff, but rather to enhance their capabilities, allowing them to spend their time on solving more challenging issues and providing customer service to residents.”
Boston-based WinnResidential has deployed AI to manage routine resident engagement, including leasing, says President Patrick Appleby. The firm’s other uses of AI include connecting residents to community services and improving collections. Including its privatized military housing company, WinnResidential operates more than 122,000 apartment units in 28 states, the District of Columbia and Puerto Rico.
“Our goal is to use AI thoughtfully to enable our onsite teams to continue to deliver the high-touch, relationship-driven work that defines quality property management,” says Appleby.
Competitive talent market
Today, companies are navigating a tight labor supply, especially for experienced roles like property managers and maintenance technicians, according to Appleby. “We’re seeing applicants, but not always with the specific experience or skillset needed to step in and be effective right away,” he says.
As a result, WinnResidential has adjusted its approach to recruiting and retaining talent.
“We look at transferable skills and potential,” explains Appleby. “Candidates have more options these days and are being selective. Providing an excellent candidate experience, being transparent and moving quickly make a big difference in filling roles, even in a challenging market.”
Transparency from the start, combined with consistent communication and support, set the foundation for stronger retention of employees, adds Appleby.
“The labor supply across the multifamily industry remains competitive, particularly for onsite roles where we compete not only with other operators but with hospitality, retail and the trades,” says Alison Donnelly, senior director of talent acquisition with Greystar. “We continue to focus on building strong career paths and a workplace experience that supports long-term retention.”
Donnelly says Greystar attracts and retains talent via strong employer branding, competitive compensation and benefits, a human-first approach and a focus on career development and internal mobility.
At DMG, which manages more than 5,000 units across five states, the majority of the leadership team started as property managers and grew into leadership roles. In 2025, 10 percent of the company’s staff of 80 received promotions.
Culture, training and collaboration are key attributes for attracting and retaining talent, says Daniel. “Our goal is to hire talent that can grow with the company, give staff the confidence to take on new responsibilities and bring new ideas to how we work.”
Marquette’s Cunningham concurs that attracting and retaining talent starts with company culture. His firm oversees nearly 15,000 multifamily units across the Midwest and select Sun Belt markets.
“We focus on creating an environment where people feel supported, trained and empowered to grow their careers, not just fill a role,” says Cunningham. “Companies that invest in their people, offer flexibility and clearly communicate purpose and expectations will continue to attract strong talent, even in a competitive environment.”
Resident satisfaction is key
Resident satisfaction is the primary driver of portfolio stability, according to the “Renter Preferences Report” produced by real estate technology company AppFolio in late April. Having the right employees will arguably enhance this metric. Residents who are satisfied with their property management company are 72 percent more likely to renew their lease, drastically reducing the high costs associated with unit turns and marketing, according to AppFolio.
The average cost of tenant turnover today is $2,500 per unit due to cleaning, repairs, vacancy and administrative work, according to property management software company Innago. Vacancy refers to the forfeited income on the unit, while administrative costs include paperwork processing and marketing efforts.
Strong relationships with tenants and periodic satisfaction checks can help prevent turnover, say industry experts.
“The biggest driver of a renewal decision is what residents experience day to day, and that’s where our local operations teams make the difference,” says Appleby. He cites responsive maintenance, immaculate grounds and follow-through as ways to build trust with residents. Additionally, a resident satisfaction survey program helps identify and resolve concerns while giving the opportunity to highlight team members who go above and beyond.
While retaining existing tenants and attracting new ones are equally important, it is always easier to keep a resident than find a new one, states Cunningham.
“We start renewing that resident the day they move in. We provide a 24-hour maintenance guarantee backed by free rent, constant touchpoints throughout their initial term, engagement events and actively work toward that renewal well prior to the lease expiration,” he says. “We cannot control moving out of state, buying a home or other life events that impact that renewal, but we can control them going down the street to a competitor.”
According to AppFolio, residents who are satisfied with their move-in process are 31 percent more likely to renew their leases, underscoring the importance of early experiences in driving long-term property performance. Maintenance satisfaction also is critical: Residents who are happy with repairs are 81 percent more likely to renew.
Engaging events pay off
Multifamily property managers agree that the goal is to create a long-term home for residents over multiple years. One way to enhance communities and boost resident satisfaction is via events and activation of amenity spaces.
“It’s important to remember that residents may come for the amenities, but they often stay for the community,” says Daniel. “Regular community events and activation of common area amenities with speakers and fitness classes bring residents together, making the property not just a place they live but a place to call home.”
DMG partners with RightFit Personal Training for wellness classes, and hosts events like Wine Down Wednesdays, holiday grab-and-go breakfasts, food trucks and kid’s craft events.
A 2024 webinar produced by multifamily technology companies WithMe and Flamingo states that resident events boost online reviews and satisfaction, while also significantly influencing residents’ decisions to renew their leases.
In addition, there’s a direct correlation between event budgets and review scores. Properties with the top 10 percent highest review scores allocate $1,121 per month on average for events, while those with the lowest scores spend $693 per month.
The most successful events are interactive, local and memorable rather than overly formal, says Meghan Hill, a senior director of marketing with Greystar. Examples include sushi-making classes, sip-and-paints, sound baths, mixology and fitness classes, spa days brought on site, live music and family-friendly block parties. Pet-focused events are consistent favorites, including “Yappy Hours” and pet Halloween contests.
Partnering with local businesses, artists and vendors keeps these activations authentic to the neighborhood while supporting local partners at the same time, says Hill.
According to Appleby, creative and music-themed events result in the highest engagement among residents at Winn properties. For this programming, Winn partners with local artists for workshops on painting or knitting, for example. Local musicians play live music for indoor and outdoor events.
Ultimately, resident satisfaction is built through consistent, everyday interactions, not just one-off events, says Cunningham. But community programming does play an important role.
“We encourage properties to host events that feel authentic to their residents — whether that’s seasonal gatherings, charity partnerships, wellness-focused activities or local business collaborations,” he says.
For Hill, recurring programming like monthly mixers, ongoing fitness classes and welcome events for new residents is effective because it provides regular opportunities for people to connect. “When residents build friendships within the community and trust the onsite team, they feel more invested in staying long term.”
— Kristin Harlow
This article originally appeared in Heartland Real Estate Business magazine.