Property Managers Cite Inflation as Top Challenge for Apartment Operations

Operational efficiency (62%) and revenue generation (54%) were the two most commonly cited challenges of 2022 for property management teams, according to AppFolio’s 2022 Property Management Industry Pulse.

The survey featured data from over 1,000 employees of US-based property management companies on the top challenges and needs in rental housing this year.

Stacy Holden, Senior Director, Industry Principal, AppFolio, said in a company blog, that outdated or insufficient property management software is a culprit in these challenges, especially according to onsite staff.

“Frontline staff are 11 times more likely than executives to consider innovation/technology a top challenge, which means their potential struggles with the business’ technology may not be reaching decision-makers,” Holden said.

Inflation Tops Hiring as No. 1 Challenge

AppFolio’s report indicated that there has been some “normalization in staffing, as organizations continue to make adjustments,” Holden said.

In fact, it no longer is the No. 1 challenge according to the poll, but rather, it’s that “inflationary pressures have likely elevated efficiency and revenue as key concerns,” Holden said.

She said that having the right technology plays a critical role in making the day-to-day easier for employees and attracting top talent.

Yet, its data show that some 40% of managers are unhappy with the integration between their existing tech stack and new services meant to streamline work or enhance customer experience.

Holden attributes this to some who are using antiquated systems.

She said that standardizing property management practices would help considering, however “the industry has a ways to go in standardizing such use” and that having a “seamless, and sophisticated property management software platform is the single most critical factor in solving these challenges.”