New standard or passing fad?

In the last half-decade, property technology (proptech) has become synonymous with innovation in property management. From AI-driven maintenance platforms to automated leasing solutions, its promises have been clear: streamline operations, reduce costs, and, most importantly, boost net operating income (NOI). Yet as the industry continues to adopt these tools, many property managers are asking whether proptech is the solution they’ve been waiting for—or just another layer of complexity.

The answer lies not in the tools themselves but in how thoughtfully property managers integrate them into their operations.

Proptech’s current impact on NOI

The immediate value of proptech lies in automation and data. Solutions like Tourus and EliseAI automate leasing inquiries, rent collection, and maintenance requests, transforming how properties are managed. Predictive maintenance tools, such as those offered by Hire Super and Lessen, ensure issues are identified and resolved before they escalate, reducing operational inefficiencies and costly repairs.

Proptech is proving indispensable for centralized property management teams. Integrating platforms like EliseAI or Tourus with Hire Super or Lessen creates a seamless workflow where automated tenant communications generate work orders that are dispatched and resolved efficiently. This synergy reduces response times and improves resident satisfaction, which in turn minimizes tenant turnover—one of the most significant factors affecting NOI.

However, challenges remain. The fragmented nature of many proptech ecosystems can lead to increased administrative burdens. Staff often face steep learning curves, and smaller operators may struggle to justify the initial investment. For proptech to truly deliver on its promise, it must go beyond isolated solutions to provide cohesive, scalable strategies.

Where proptech falls short

Despite its potential, proptech isn’t without pitfalls. Many platforms operate in silos, creating inefficiencies rather than alleviating them. Without proper integration, property managers may find themselves juggling multiple tools that fail to communicate with each other, leading to duplicated efforts and lost time.

Nima Wedlake

There’s also the human element. While there are tools to automate tenant communications, some property managers report that these platforms can feel impersonal, leading to reduced tenant satisfaction. As Nima Wedlake, managing director at Thomvest, a technology investment company, says, “The real power of proptech lies in its ability to augment, not replace, the human element of property management. Tools like AI-driven leasing platforms and automated maintenance solutions can free up property managers to focus on building relationships and delivering exceptional service, ultimately driving NOI and resident satisfaction.”

Moreover, for smaller operators managing tight budgets, the cost of integrating these advanced systems can be prohibitive, especially when the return on investment isn’t immediate.

The future: data as a game-changer

What sets proptech apart from traditional methods is its ability to harness data for decision-making. Companies like HelloData can immediately solve pricing challenges for rental comps. However, predictive analytics is becoming a cornerstone of next-generation property management, offering insights into tenant preferences, maintenance needs, and market trends. As these technologies mature, property managers will be able to anticipate tenant behavior, optimize rents dynamically, and maintain competitive occupancy rates.

AI-powered platforms are already enabling real-time rent adjustments based on market conditions and tenant data. These capabilities empower property managers to maximize NOI even in fluctuating economic environments.

The most successful property managers of the next decade will be those who use data not just as a tool but as a strategy. Harnessing predictive analytics and AI will allow managers to shift from reactive to proactive operations, unlocking value that was previously hidden.

What proptech means for property managers

The integration of proptech represents a fundamental change in how properties are managed. For property managers, the challenge lies in balancing innovation with execution. Technology alone cannot replace the nuanced understanding of tenant needs or the relationships that drive long-term retention.

Jenny Song

As Jenny Song, principal at investment company Navitas Capital, explains, “Technology amplifies capabilities but doesn’t replace the human element. Through our work with leading property owners and managers, we’ve seen that technology can improve the ‘personal touch’ of property managers by automating work that can be better done by computers and freeing up people to focus on relationships and service—the things that humans are best at.”

Final thoughts

Proptech is not a passing fad; it’s an evolving standard that will shape the future of property management. However, its ability to boost NOI depends entirely on thoughtful implementation. Property managers must approach proptech as part of a broader strategy—one that integrates tools seamlessly, leverages data for proactive decision-making, and prioritizes the human connections that remain central to tenant satisfaction.

In an increasingly competitive market, those who embrace a balanced approach to proptech will not only enhance NOI but also redefine what it means to deliver value in property management. For forward-thinking property managers like IREM members, the question is no longer whether to adopt proptech, but how to do so in a way that aligns with the unique needs of their properties and tenants.