AI Is Changing Property Management Faster Than Most Teams Can Keep Up

• Training camp: The biggest barrier to tech adoption in real estate isn’t tools but training on a constantly evolving stack.

• Luxury housing for all: A new report reinforces the theory that building more supply, even if it is luxury, can help bring rents down for low-income renters.

• 401(k) funds: A new IRS rule would allow retirement accounts to hold new types of assets, including CRE.

• Upcoming webinar: How AI and data tools are transforming energy management in commercial real estate asset operations. Sign up

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Perspectives

AI Is Changing Property Management Faster Than Most Teams Can Keep Up

Property management software has come a long way from the days of clunky DOS systems and photocopied cash receipts. Today, platforms like Yardi, MRI, and RealPage are updating monthly with AI agents that can categorize invoices, generate lease renewals, and trigger smart workflows automatically. But while the software continues to evolve at a breakneck pace, most property teams are struggling to keep up. The problem isn’t the tools themselves—it’s the lack of training. A Deloitte survey found that while 70% of firms have increased tech investment post-pandemic, only 28% have formal training programs in place.

This disconnect is already being felt on the ground. Onboarding has become a checkbox, and role-specific training is rare. As a result, staff don’t trust automation, leasing teams can’t conduct virtual tours, and residents won’t adopt portals that no one can explain. The result is slower adoption, higher staff churn, and wasted investment. The industry is moving from a digital adoption problem to a digital competency problem. Even tech-fluent hires can't navigate features they’ve never been trained to use—especially when software updates come monthly instead of annually.

The companies that will succeed in the current environment won’t be those with the most powerful tools but those that train their people to use them. Strong training cultures reduce errors, cut turnover, and increase platform ROI. It’s no longer about knowing how to click—it’s about understanding what matters and why. If the last decade was about going paperless, the next will be about keeping pace.

Overheard

401(k)s Could Be the Next Frontier for Real Estate Investment

The U.S. retirement system might be on the brink of a significant shift. A new executive order expected from the Trump administration would push the Department of Labor to make it easier for Americans to invest in private equity, hedge funds, and real estate through their 401(k) plans. The move is framed as a way to “democratize” access to private assets, which have historically been reserved for pensions and institutional investors. While not an outright rule change, the order could tip the scales by encouraging plan providers and fiduciaries to consider alternatives outside of traditional public markets.

This wouldn’t be the first time the idea has surfaced, but the timing makes it particularly relevant. Many defined benefit plans already allocate heavily to real estate, enjoying the long-term stability and appreciation that comes with it. But 401(k)s—now the dominant form of retirement savings—largely stick to mutual funds and ETFs. Expanding their scope to include commercial real estate could finally create a pipeline for everyday investors to participate in a sector that has long been fenced off. It could also unlock a wave of capital at a time when commercial real estate is hunting for liquidity and new sources of demand.

If this policy direction gains traction, it won’t just impact retirement portfolios. It could fundamentally change the way real estate assets are structured, packaged, and marketed. We’ve already seen REITs evolve to meet retail appetite, but direct exposure through 401(k)s could drive innovation in fund design and transparency. Of course, there’s risk—real estate is illiquid and cyclical—but as retail capital moves closer to private markets, the lines between institutional and individual investors may get increasingly blurry.

More Evidence That Housing Affordability Starts With Housing Supply

Even as rent pressures cool in some parts of the country, low-income renters are still bearing the brunt of the affordability crisis. A new Pew report found that between 2017 and 2024, ZIP codes in the lowest income quartile saw rents rise up to 10.3% more than in high-income areas. In markets like New York, housing supply simply hasn’t kept pace with job growth—just a 4% increase in housing stock from 2010 to 2023, despite a 22% gain in employment.

The data points to a clear solution: build more housing, in more places. According to Pew, a 10% increase in local housing supply was associated with 1.4% slower rent growth for low-income tenants. That impact was even stronger in neighborhoods with older housing stock, where rent competition is fiercest. Even market-rate housing can help reduce overall pressure, easing demand and allowing older units to remain accessible to those who need them most.

For developers and policymakers, the message is hard to ignore. Housing supply isn’t just an economic lever as well as a way to provide equitable housing options for all income levels. Zoning restrictions and NIMBY opposition may be framed as neighborhood preservation, but they often translate to rent spikes for those with the least resources. The most powerful form of housing affordability support may not be subsidies or vouchers—it may simply be permission to build.

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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