Is anyone else seeing a trend lately where ownership and management companies are significantly reducing onsite office staff to cut payroll costs?

I’ve been with my company for several years, and they’re proposing to reduce our office team from six people down to just three at a 600+ unit community. Some administrative responsibilities are being centralized or eliminated, and it appears compensation may be impacted as well.

I’ve heard similar stories from friends in other markets, so I’m curious if this is becoming an industry-wide trend. While AI and new technologies can certainly improve efficiency, there are still many aspects of property management that require a human touch and strong resident relationships.

What are you seeing in your markets? Are staffing levels being reduced, responsibilities being consolidated, or positions being eliminated? I’d be interested to hear what’s happening elsewhere.

And then management companies don’t understand why they can not find staff,,, they are working them to death

Centralization systems are getting better with the PMSs and so is AI - dramatically better every day. Basically everything except caring for the physical property and in-person touring can be done more efficiently remotely and digitally. And these systems are expensive, so they're trading labor costs for more software. Even touring is going digital or self-guided so a body in the office is just less needed.

I’ve been in and out of our office since 2017 and we have 336 apartments. I came back onsite last September as ACD and only having 3 of us (CD, ACD, 1 LC) in the office compared to 4 of us (CD, ACD, 2 LCS) years ago, I have to say it is extremely stressful. Plus I have found that people have become more needy and incompetent when it comes to being grown, responsible, accountable, and know how apartment living works.

Some communities have gone 100% virtual tours only, and I’m talking about large national companies & good size A+ properties.
I’ve also seen offices open 1-3 days a week.

Anonymous member 667 that’s sad. I know so many people that will do the virtual tour, but honestly will want to see the actual apartment/condo/TH whatever (understandably). Too many leases without seeing the actual unit can be very disappointing for the renter and a major headache for the staff. MOO🤷‍♀️

Anonymous member I've heard of that too! 100% virtual and no staff on site 😳😳

We are struggling to find qualified candidates for our openings. We are understaffed organically which is fairly common in Affordable Housing. I do think there is a big push to reduce costs at any costs and sadly that often means that the employees still there are overworked and burn out faster....and the cycle continues.

I saw that coming the moment they implemented Rent Cafe that’s why I jumped right out of the business. Pretty soon they’ll only have Maintenance.

Our company consolidated maintenance and PM are overseeing more then one community .

ZRS is doing it as well

The problem to me is they are taking the wrong people out of the office. The first position that should get to work from home is the property manager. Leasing obviously needs to be there to do tours and be the face of the property. ACM’s need to be there to scan checks and handle minor issues. Every single one of the managers responsibilities could be better accomplished as a hybrid role.

John Jeff I completely agree with this. Even in affordable housing.

I think this trend will be short-lived. People want the human connection and customer service. Companies that rely heavily on AI are not successful in the long run. It may save the money for a little bit but whenever they’re having to spend thousands of dollars in concessions to try to lease that property back up because they went fully AI hindsight will show them where they should’ve been investing and that should’ve been in their people and customer service..

Anonymous member 323 The ACM position is really becoming unnecessary onsite as more and more properties take only online payments. AI collections are extremely successful; the ACM position - industry wide - is being phased out. Many of the larger operators have eliminated the position altogether.

Anonymous member 408 if companies continue to eliminate ACM positions, how will anyone ever train their successors? It’s already hard to find competent employees. The ACM roll is important for many reasons, not just processing rent payments. Although  it is nice when people enroll in auto pay so that the Acm’s have one less task to do.

Reducing staff outcome just hurts the landlord. My opinion is that management companies are getting very greedy and their care for the client is minimal. If clients smarten up, they will self manage.