Recalibrating the Centralization Pendulum in Multifamily

For decades, traditional property management thrived on a localized, boots-on-the-ground approach. On-site teams handled everything—from leasing to maintenance to resident engagement. But beginning around 10 years ago and accelerating sharply through the COVID-19 pandemic, the industry saw a seismic shift. Centralization became the battle cry. Teams were condensed, self-guided tours replaced in-person leasing, and entire operations moved into remote hubs or offshore call centers.

In many ways, this shift made sense. With residents isolating and companies tightening budgets, centralization offered a compelling promise: do more with less. Technology stepped in as the hero—AI automated leasing agents, maintenance request portals, and remote management dashboards proliferated. Suddenly, scale was everything. Efficiency was king.

But now, as the dust settles, we see the pendulum swing back. Not toward the past, but toward something smarter. Functionally specialized real-life people. 

When Scale Sacrifices Service

The rapid move to centralization wasn’t without its consequences. In the name of efficiency, many companies inadvertently stripped away the very thing that made their communities feel like home: personalized customer service.

Operations turned into tech hotlines. Inexperienced (and sometimes entry-level) agents followed rigid scripts. Longtime residents found themselves routed to outsourced teams that lacked familiarity with their building—or their lives. Maintenance issues became tickets, not conversations. And the nuanced needs of different properties were flattened into one-size-fits-all service models.

That impersonal approach may keep margins lean, but it doesn’t win loyalty. And in an age when online reviews, candid feedback, and resident NPS scores can make or break a portfolio, impersonal isn’t a risk—it’s a liability.

The Functional Specialization Future: Personalization at Scale

What we’re seeing now is a recalibration—a thoughtful return to balance. The future of property management isn’t about choosing between hyper-local and fully centralized. It’s about finding the hybrid model that does both.

This model blends functional specialization with regional context. Yes, automation and centralized teams can handle repetitive, transactional tasks. But trained and supported human interaction—especially in leasing, conflict resolution, and resident retention—requires empathy, local knowledge, and trust. That’s where thoughtful leadership steps in.

It’s not just about “centralizing.” It’s about centralizing intelligently. Who is best positioned to solve the problem? When does a AI chatbot help, and when does it hurt? Is your ChatGPT copywriter following your local fair housing ordinance? Can your system anticipate a resident’s needs, or is it forcing them through a decision tree? The best operators are asking these questions now, not later.

AI, Tech, and the Return of EQ

Interestingly, this hybrid future may be the best environment yet for emerging tech like AI. Not because AI can replace people—but because it can support them. Imagine a maintenance ticket that starts with a photo upload and receives instant, AI-driven troubleshooting steps. Or a leasing tour that uses virtual agents for scheduling but always routes serious questions to a local expert.

Technology should empower teams to do what they do best: build relationships, solve problems creatively, and think critically. It shouldn’t be a firewall between a resident and a resolution.

And that’s the lesson the pandemic taught us—just because we can automate everything doesn’t mean we should.

Conclusion: Balance Isn’t a Buzzword

The property management industry is on the cusp of its next evolution. We’ve seen the extremes—hands-on everything and hands-off everything—and neither one is the answer.

Instead, the companies that will thrive are the ones that prioritize thoughtful structure. Ones that give their teams the tools to be efficient and empathetic. Ones that design their org charts not around trends, but around outcomes. And ones that recognize what the best residents—and the best team members—have always wanted: to be seen, heard, and understood.

The pendulum is swinging back. And this time, we have the wisdom to stop it in the middle at Authentic and CHARLESGATE. 

This week’s insight comes from a recent conversation I had with CHARLESGATE’s new VP of Operations, Jason Tilley—someone you definitely need to be following if any of today's message resonated with you.