Arunabh Dastidar, CEO at Leni.
There is a profound change underway in the multifamily real estate market. The days when operators primarily focus on leasing units and receiving rent payments are long gone.
Instead, the industry is largely aimed at creating value through enhanced operational efficiency, improved customer experience and technology integration. I particularly see centralization as the epicenter of this change, transforming how multifamily properties are being serviced, managed and staffed.
The Forces Behind Centralization
Centralization in multifamily housing is driven by many forces, including rising operational costs, labor shortages and increasing tenant demands, all of which are pushing owners and operators to rethink management structures.
I see labor shortages as one of the key factors driving the need for centralization. By consolidating leasing, administrative and maintenance functions, operators can streamline workloads and optimize resources.
Technology overall plays a crucial role in the drive for centralization. Advanced property management systems, AI leasing assistants and unified communication tools enable oversight of multiple properties from a single office, providing real-time data, automated workflows and better decision-making.
Because of these drivers, many third-party management companies, once slow to adopt centralization, now see it as necessary for standardizing services and improving efficiency. A recent industry report debunks myths and shows how centralization benefits businesses of all sizes without necessarily reducing jobs. Instead, I see it helping to shift employees toward higher-value, strategic tasks, which in turn helps to increase job satisfaction.
Technology As the Backbone Of Successful Centralization
Through tools like cloud-based property management systems, virtual leasing applications and AI analytic solutions, centralization enables data-driven decisions. You can use these integrated systems to analyze market trends, predict maintenance needs and adjust pricing. A NAA research study demonstrates how it can significantly reduce operational costs while enhancing response times and employee satisfaction.
Centralized teams are now able to handle inquiries, schedule showings and sign leases without ever having to leave the office, thanks to leasing platforms and virtual tours. Enhanced triage and dispatch systems enable maintenance requests to be sent, which reduces response times and enhances tenant satisfaction.
Further centralization is achieved by AI-based systems helping to predict tenant activity, pricing and preemptive maintenance. The incorporation of smart home appliances serves the additional purpose of enhancing tenant convenience while providing data that operators can use to improve their operations.
Optimizing Multifamily Performance
Improving multifamily performance increasingly depends on the ability to anticipate needs, optimize resources and make data-informed decisions. Toward getting the most out of these systems, you can:
• Use predictive maintenance to cut costs and extend asset life. Pairing these systems with centralized coordination can streamline service workflows, minimize downtime and improve tenant satisfaction.
• Implement smart energy controls to improve efficiency. Efficiency in energy usage is yet another driving factor in improving multifamily performance. Look to track usage patterns, adjust system settings based on demand and integrate energy data into broader operational planning.
• Break down data silos to gain portfolio-wide insights. Rather than operating each property in a silo, the key is to locate underlying relationships and patterns. This perspective can enhance decision-making in complex rent settings, capital expenditure planning and overall spending on advertising and public relations activities.
Challenges And Ways To Solve Them
Like any operational shift, moving to a centralized model comes with challenges. Change management is critical; teams need to understand new workflows, and communication must be clear to minimize disruption. Gaining staff buy-in early is essential, and that starts with effective training and support.
Role-based simulations and workflow shadowing have proven to be effective onboarding formats. Supported by tools like Loom for screen recordings and Notion for process documentation can help standardize processes across teams and locations. Many operators also appoint peer champions—internal advocates who guide others through the transition and help build trust from within.
Early signs of poor adaptation include continued use of legacy tools, missed task handoffs or increased escalation volumes. These issues can be addressed through targeted coaching, regular feedback loops, and reinforcement of the broader value that centralization delivers—greater clarity, efficiency and impact.
Technology integration is another common hurdle. Centralized systems must work seamlessly with existing platforms while maintaining data security, especially when sensitive financial or resident data is involved. Operators typically start with three foundational systems: a property management system (PMS), a unified communication tool and a centralized analytics layer.
Integration issues—particularly with older systems lacking APIs—can often be solved by introducing middleware to standardize data without needing full system replacement.
Importantly, centralization is as much about behavior as it is about systems. The goal isn’t just better software—it’s smarter, more consistent operations that align with how teams work.
A final challenge is managing expectations from property owners, especially in third-party management environments. Owners may worry that centralization reduces on-site control or personalizes the resident experience. These concerns are best addressed by showing the ways that centralization improves visibility, standardizes service levels and enhances reporting transparency across the portfolio.
Staff may have similar concerns about reduced autonomy. But I find that when centralization is framed to eliminate repetitive work and refocus teams on high-impact tasks, it becomes clear that it enables, not replaces, stronger performance.
Looking Forward: Creating A Strategy Around Centralization
While centralization will not solve all the challenges a multifamily operator faces, its impact is being felt across the entire industry. During these economically challenging times, with labor shortages and rising expectations from tenants, a centralized model can help streamline portfolio oversight, enabling managers to respond faster and engage more effectively with tenants.
By combining consistent service standards with meaningful insights, I find that centralization can support more strategic decisions across leasing, maintenance and capital planning.
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