A new report from the National Apartment Association (NAA) and AppFolio offers critical insights into the challenges and opportunities shaping property management performance in today’s environment.
One of the key takeaways from the “2025 Performance Ecosystem Report,” based on a survey of nearly 2,000 real estate industry professionals conducted July 16 to Aug. 4, is around the implementation of technology. While operational efficiencies and maximizing revenue and profits remained respondents’ top challenges, implementing new technology and innovation has moved to the No. 3 spot, bumping out human resources, recruitment, and staffing.
The report also finds a time allocation imbalance, with respondents being more reactive to immediate demands. On average, respondents said they devote 42% of their week to routine operational work, such as paperwork, data entry, and administrative tasks, and 24% to reactive tasks like troubleshooting, tackling service disruptions, or responding to urgent requests. This leaves only about a third of their time for higher-value activities, such as strategic, performance-driven work and stakeholder engagement.
“This new report from the NAA, in partnership with AppFolio, confirms that the largest threat to property performance isn’t demand, it’s our operational strain,” said NAA president and CEO Bob Pinnegar. “At such a crucial time for our industry—where property teams are being asked to operate more strategically then ever—this timely analysis sheds light on constraints like staffing challenges, fragmented systems, and reactive workflows. Long-term performance will depend on how well the industry aligns teams, technology, and the customer experience.”
Some additional findings from the report include:
- 60% of respondents said they survey residents to gauge satisfaction, while only 35% said they survey their staffs. Among the 60% who said they poll residents, 85% reported improved satisfaction scores over the previous 12 months;
- While 92% of the respondents said current performance data is easy to access, they reported trouble finding forward-looking data. Only 44% said they find predictive data easy to access, and just 47% noted the same regarding prescriptive data;
- Nearly 60% of respondents said they use three or more separate software logins daily, leading to fractured data and inefficient workflows.
- Just over two-thirds of respondents, 67%, noted they believe consolidating all data into a single system would improve their company’s overall performance; and
- Artificial intelligence (AI) is part of the daily workflow for a majority of operators, with 53% of respondents using general-purpose AI tools such as ChatGPT and Gemini. In addition, 43% said they are tapping into AI features embedded within core property management software platforms, and another 26% are using business software AI add-ons, such as Microsoft Copilot. However, nearly one-quarter of the respondents indicated they do not utilize any AI tools in their current role.
“This report reinforces our belief that the industry needs a better way to drive performance in the new real estate era,” noted Stacy Holden, vice president and industry principal at AppFolio. “When your platform can reliably do the work with you, with AI as a core building block, your teams can move into the foreground to manage relationships and create value that helps your entire ecosystem thrive.”