The increasingly complex and regulated real estate market is stressing the limits of property managers, with experts saying it is unprecedented. According to the National Apartment Association (NAA), companies cite operational efficiencies (75% of respondents), maximizing revenue and profits (66%) and implementing new technology and innovation (39%) as significant challenges.
"Operators are juggling efficiency, staffing, resident expectations and compliance pressures all at once, which is unlike anything we've experienced prior," says Tiana Heath, CAPS, NAA's senior manager of industry relations for its education institute division.
She adds that a growing patchwork of state and local regulations is adding cost and complexity, and, coupled with higher resident expectations, it's making operational discipline even more important.
As Costs Rise, Operators Embrace Technology
Property owners are facing steep cost increases spanning multiple areas, according to Heath. And in some markets, the increases are being compounded by concessions, replacement costs and new regulatory requirements. Overall, the cost of shelter accelerated in April 2026, with a 0.6% monthly gain and a 3.3% yearly increase, according to NAA's research.
"Several major categories are moving up all at once, including labor, utilities, maintenance and insurance taxes," she says. "With the growing volume of local policies and proposals, operators are experiencing an outsized and costly compliance burden."
Heath notes that the "stacked cost environment" is making it difficult for operators to absorb the shocks, making budgeting tougher and putting more pressure on day-to-day operations. However, leaning toward technology solutions can reduce avoidable risk by providing better monitoring, preventative maintenance and stronger documentation.
"Technology can help operators make a stronger case to insurers and reduce the change of those preventable losses over time," says Heath. She says that concentrating on areas such as digital leasing, automating repetitive work and using better data to catch problems earlier, can have immediate impact.
"Technology that reduces friction, simplifies workflows helps teams focus on high value work and run properties more consistently."
Fraud Hampers Operations, Budgets
Unfortunately, property owners continue to battle against leasing and tenant fraud issues. Heath says that the financial impact of fraud goes well beyond a bad application.
"Fraud can lead to lost rent, increased bad debt, legal costs, staff time and broader performance issues." However, the market response is moving towards stronger screening, better verification tools, more consistent staff training and more portfolio-level tracking so that operators can spot the patterns before losses build. And technology continues to play a role in improving background and identity checks, including platforms that detect fraud history.
"Fraud has been around for years, but it's become a major financial issue, creating a ripple effect for the operation of the residential community." In response, NAA has developed a dedicated webpage with industry reports, trend data and prevention strategies tailored specifically for the rental housing industry.
"There's so much pressure on operators now with core expenses rising faster than anyone expected. And those increases are hitting multiple lines of the budget all at once," says Heath. "It's a little bit of a perfect storm between labor and turnover, utilities, insurance and property taxes, making it a difficult landscape for operators to navigate."
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