Elevating the Living Experience : The Impact of Centralization on Property Management Efficiency
By Jacob Kosior
The push towards centralization represents a transformative shift in the housing industry on how services are delivered to both property owners and residents . It ’ s one more way property management is evolving in today ’ s rapidly transforming landscape . By leveraging technology and specialized teams , centralization enhances the living experience for our residents and operational efficiencies across a management ’ s portfolio .
Centralization is the strategic reallocation of tasks traditionally managed by on-site community teams to an offsite , specialized team . This change is driven by several factors , including the tight labor market , rising payroll expenses , the advent of new communication technologies , and changing consumer behaviors . Recently , a RealPage National Survey revealed that 79 % of renters prefer managing their relationship with their property manager through direct messages , texts , or chats . This highlights a clear demand for more streamlined and digital-first communication methods from our consumers .
The benefits of centralization are multi-faceted , and impact the owner , management company , and resident experience . For owners , centralization solutions can provide reduced operating expenses , new performance metrics , and proactive management of onsite turnover , all while efficiently addressing operational and financial needs . For instance , AI can be used to replace manual processes of the past , like contacting residents regarding their outstanding rent . At the same time , renters enjoy improved responsiveness ,
consistent communication , and standard operating procedure ( SOP ) -approved responses . This meets the needs of today ’ s consumers who increasingly seek technology-driven solutions for convenience and engagement .
Owners and property management firms should look for an approach rooted in innovation and consistency . Centralization should be characterized by the deployment of remote experienced team members , advanced technology , and AI tools with machine-learning capabilities , all working together to enhance efficiency and service quality .
MANAGEMENT
Look for improved key performance indicators across various phases of property management , including collections , leasing , resident services , lease administration , and facilities management . These lead to streamlined rent collection , efficient lead management and improved maintenance services .
Leading centralization services integrate AI tools in collections , alternating between sending email and SMS messages , and automatically including cosigners in communications . This feature greatly enhances the efficiency and effectiveness of rent collection processes .
Centralization strategies represent a significant step forward for property management companies . By focusing on operational efficiency , technological integration , and responsive customer service , centralization not only addresses the immediate needs of property owners and renters , but sets a new standard for the industry . As the landscape of property management continues to evolve , centralization systems will undoubtedly play a crucial role in shaping the future of real estate services . As a result , property management will be more streamlined , efficient , and user-friendly for all stakeholders .
Jacob Kosior is the Vice President of Centralized Services at Cardinal Group www . aamdhq . org JUNE 2024 TRENDS | 13