From Property Management to Performance Management: AppFolio Report Shows AI Leaders Pulling Ahead
SANTA BARBARA, Calif., Feb. 18, 2026 (GLOBE NEWSWIRE) -- AppFolio (NASDAQ:APPF), the technology leader powering the future of the real estate industry, today released its 2026 Property Management Benchmark Report. The findings indicate that the property management industry is at a pivotal moment. Firms integrating AI into their core workflows report stronger growth expectations, both in portfolio expansion and team investment, than the broader market.
The survey shows that property management professionals are entering 2026 with high expectations: 81% of managers report a positive outlook, and 77% expect to increase their unit counts this year. However, this optimism is tempered by the reality that legacy software is preventing operators from bridging the gap between completing tasks and unlocking performance. This friction is most evident as teams struggle to manage:
- Elevated vacancy rates that are squeezing net operating income (NOI), cited as the top threat by 55% of respondents.
- Rising operating costs and the intensifying pressure to scale efficiently.
- Rising resident expectations around service, flexibility, and value.
From Tasks to Outcomes: Closing the Real Estate Performance Gap
The data highlights a significant divide in how firms are navigating these headwinds. Real estate operators who have embedded AI into their core workflows report more ambitious growth trajectories and a more resilient workforce strategy than those moving at a slower pace:
- Accelerated Scaling: Firms that have broadly adopted AI expect an average portfolio growth of 31% in 2026, nearly triple the 12% growth anticipated by those yet to implement the technology.
- The Staffing Paradox: AI adoption is driving, rather than replacing, human talent. 34% of AI adopters plan to increase headcount to support their operations, compared to 25% of non-users.
- Strategic Reinvestment: By automating manual workflows, AI-native operators are shifting their focus to relationship-driven work – such as resident and owner relationships and services – that directly impacts retention and NOI.
A drive to unlock better performance is shaping how operators approach technology, yet a significant trust disparity persists in the broader market: 78% of survey respondents report that they cannot yet rely on the AI features in their legacy property management software. In contrast, 98% of AppFolio customers are already actively using one or more AI-native capabilities within the AppFolio Performance Platform.
This drive for reliability and real outcomes are accelerating a broader transition toward a unified platform. As 45% of operators signal plans to consolidate their tech stacks, the industry is moving past the management of isolated tasks in favor of holistic business outcomes. This shift allows leaders to bridge the gap between leasing, maintenance, and finance, creating a unified experience that drives measurable performance across the entire business.
"The most successful firms are no longer just managing properties; they are managing performance," said Stacy Holden, Vice President, Industry Principal at AppFolio. "The data shows that by leveraging an AI-native platform to unify their systems of record, action, and growth, operators can move beyond the daily grind and focus on the high-impact work that defines Real Estate Performance Management."
The Future of Resident Experience and Fraud Prevention
The report also identifies a continued gap between resident expectations and manager offerings, highlighting opportunities to drive growth and resident satisfaction in 2026:
- Financial Flexibility: 65% of residents want security deposit alternatives, but only 29% of managers offer them.
- Bundled Services: 71% of residents value bundled resident services, yet only 22% of managers provide them.
- Onboarding Friction: 30% of managers cite utility setup as the number one move-in pain point.
Additionally, as leasing workflows become more automated, 56% of managers report facing application fraud in the last year – with 65% of those victims facing multiple types of fraud. While 78% of managers maintain confidence in manual document verification, the high frequency of attacks suggests a disconnect between traditional security methods and the sophistication of modern fraud.
To review the complete findings and uncover trends for 2026, download the 2026 Property Management Benchmark Report.
Survey Methodology
AppFolio surveyed 1,617 U.S. based residential property management professionals from September 26, 2025 to November 3, 2025.
About AppFolio
AppFolio is the technology leader powering the future of the real estate industry. Our innovative performance platform and trusted partnership enable our customers to connect communities, increase operational efficiency, and grow their business. For more information about AppFolio, visit appfolio.com.
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