After a year of experimentation and adaptation, 2025 will be the year multifamily operators move beyond evaluating the potential ROI of AI tools. They will implement and reap its benefits to deliver measurable, game-changing outcomes. This shift has already happened for many, as evidenced by the 94% of businesses on the AppFolio Property Manager platform now using AI capabilities to support their operations.

Multifamily teams will rely on AI to unlock even deeper operational efficiencies, richer resident experiences, and a heightened strategic focus. For example, operators using AppFolio Realm-X, the industry’s first embedded generative AI solution, have already racked up savings of 10-plus hours per week in 2024. That’s more than an entire workday that can be strategically reallocated. Additionally, as AI continues to integrate with IoT devices and more robust datasets, it will help create smarter buildings and power highly personalized resident services.

So, if 2024 was a time of exploration, 2025 will be about action and achieving next-level efficiency. Imagine the exponential benefits that lie ahead as these AI capabilities mature and multiply.

‘Platformization’ on the rise

This year, property management teams will continue shifting toward robust platforms with built-in AI workflows. That’s preferable to bolting AI onto current systems, as this can create a bumpy, even buggy, user experience. As we continue to see the multifamily industry move away from the patchwork of legacy software systems and manual processes that once dominated, platforms with embedded AI will lead.

AppFolio Realm-X, for instance, combines AI technology with industry-specific context to transform operational performance. Instead of deploying AI in silos or against narrower use cases, the platform leverages a conversational interface and becomes an assistant across the entire property management system. It has already created countless efficiencies – as 75% of our users now agree that Realm-X reduces busy work.

Communication tools become a lifeline

One key efficiency is improved communication – as AI is significantly enhancing the speed of operators’ replies to residents.

By delegating routine inquiries – maintenance requests, rent reminders, lease renewals – to an assistant like Realm-X, staff can recapture hours each week that once disappeared into inboxes and voicemails. For one customer, this shift meant the difference between scrambling to answer routine questions and having the time to proactively engage investors or craft a new resident retention strategy.

In supercharging communications, AI empowers operators to refocus their human capital on high-value activities, deepening engagement and setting new service standards.

Still, that is not all for 2025.

Smarter, more secure communities

The teams that continue to uplevel and reimagine their AI use will emerge as winners this year. As such, I expect operators to begin expanding their AI applications. We will even see them invest in more nascent areas, including tighter integration with IoT devices. It’s a critical shift, considering most renters believe a range of smart-home technologies “should be a standard feature” in multifamily housing. AI can magnify its potential.

These areas include:

• Predictive maintenance: AI can monitor building systems (e.g., heating, cooling, and plumbing) to identify issues before they become significant problems. This will help reduce costly repairs, minimize downtime, and ensure a seamless utility experience for residents.
• Resident personalization: including AI-powered resident platforms like FolioSpace, which will streamline communications and ease renters’ onboarding and maintenance processes, enhancing every aspect of their housing journey.
• Security and access: AI will also augment features like touchless entry and help staff recognize residents or delivery personnel, reducing unauthorized entry risks and improving overall property security.

Responsible AI frameworks

While AI will again dominate discussions and investment decisions this year, its effectiveness will depend on responsible and ethical use. Of course, this extends beyond the end user.

At AppFolio, we take this responsibility seriously and follow strict guidelines to review and evaluate innovation for fairness, reliability, privacy and security, transparency, and accountability. Ultimately, we fine-tune our technology to provide accurate insights, facilitating better experiences and sharper decision-making.

We also encourage users to align their AI use with clear internal guidelines and accountability measures. By embracing this, they will continue to maximize AI’s benefits and address organizational pain points.

Much more in store

As we advance through 2025, AI will continue to evolve from an emerging technology to an indispensable driver of success.

Property management teams can position themselves at the forefront of a smarter, more efficient, and more human-centered industry by investing in integrated solutions, expanding AI capabilities, and prioritizing ethical standards.