Why Multifamily Investors Need AI in 2025

From Hype to Necessity

Scroll through LinkedIn or turn on the news, and you’ll hear the familiar warning that “AI is coming for everything,” from our jobs to our critical thinking skills. 

It used to be easy to write that off. AI was clunky and too far removed from the day-to-day reality of property operations. It wasn’t built for multifamily, and the industry knew it.

That’s no longer the case. AI has matured, and now, it’s a proven driver of portfolio performance. Capital partners aren’t asking whether operators use AI. They’re asking how it’s being used to move faster and protect NOI.

At Rentana, we’ve seen forward-thinking multifamily teams leverage AI to forecast with precision, uncover revenue hiding in plain sight, and adapt to market shifts in days instead of weeks. For investors, it’s a direct path to more substantial returns, not just a tech upgrade.

‍

The Multifamily Margin Squeeze Is Here

The double-digit rent growth of 2021 and 2022 gave some teams breathing room. Now, that tailwind is gone, leaving operators with less flexibility to absorb surprise costs and far less room for any missteps.

In 2025, multifamily investors face higher debt costs and inflation-driven expenses. An astounding 93% of investors are having trouble underwriting multifamily deals, and operating expenses have climbed nearly 50% since 2015. These days, even a slight miscalculation concerning leasing velocity or retention can raise red flags.

These pressures have investors paying closer attention to how quickly and accurately operators react when the market changes. They want to see solid revenue results, clear reporting, and systems that can work across multiple properties.

That’s why top operators are already using live data to tweak their strategy the moment the market shifts. Modernizing your tools opens the door to greater efficiency and stronger returns.

‍

AI Finds Margin Faster Than Humans Can

The industry has already cut the low-hanging fruit, like renegotiating vendor contracts and scaling back marketing. But margin pressure hasn’t eased up.

Operating expenses per unit exceeded $9,000 by Q3 2024, marking a 6.7% increase over the prior year. Now, staying ahead means finding hidden revenue and preventing losses before they hit the balance sheet.

A powerful AI platform does more than simply aggregate important data. It will also learn from it, enabling the tool to detect stalled leases before a human notices, highlight missed renewal windows, tag uncaptured rent, and more.

AI supercharges the ability to act decisively. The most effective multifamily AI tools work quietly in the background, sifting through market trends, resident behavior, and operational data. They deliver precise recommendations, whether it’s saving an at-risk renewal or addressing an underperforming asset.

With AI, teams can see what’s coming and act with confidence to keep the portfolio moving forward, no matter how tight the market gets.

‍

Lease-Ups: High Stakes, Low Margin for Error

One of the biggest make-or-break factors in multifamily is lease-up performance. If a new development misses its revenue goals or timeline, it can ripple through valuations and investor trust.

‍

AI gives lease-ups the visibility they need to stay on budget and on track. With the right platform, asset managers and operators can:

‍

• Forecast leasing pace based on real patterns, not assumptions.
• Spot price misalignment early enough to fix it.
• See which competing properties are actually pulling demand away.
• Get market insights in real time.

‍

Lease-ups depend on fast and efficient decision-making. Each delay in leasing is a direct hit to NOI.

Consider this: a single week of vacancy on a $1,700 unit costs about $425. Across 50 units, that’s roughly $21,000 lost each week, or more than $84,000 a month if those units stay empty.

That’s why leading property management technology brings lease-up performance under sharper focus, so investments stay on track and deliver the returns you planned for.

‍

‍

‍

Complexity and Onboarding Aren’t the Problem Anymore

One of the biggest complaints we hear from multifamily teams is, "We don’t have time to onboard something new."

It’s a valid concern. Over 60% of professionals say they don’t have enough time or energy to complete their work, let alone learn a new tool. Not to mention, the multifamily industry has been burned by platforms that overpromise and underdeliver.

‍

But not all tools are created equal. AI-powered revenue intelligence platforms like Rentana are built specifically for multifamily. That means:

‍

• Onboarding takes hours, not weeks.
• No-code integrations pull data directly from your existing systems.
• Teams can keep the processes that already work.
• You get value immediately, not several months after implementation.

‍

Today’s multifamily AI tools are designed with usability in mind. The complexity barrier used to be real. Now, it’s solvable.

‍

AI Supports Teams, Not Replaces Them

The fear that AI will replace leasing teams or asset managers is common. Nearly 30% of workers fear that AI could reduce or replace their roles. But that fear slows meaningful progress.

In multifamily, success hinges on judgment, and AI sharpens decision-making. Plus, it speeds up tasks and boosts employee satisfaction. According to the 2024 Work Trend Index Annual Report from Microsoft and LinkedIn, most workers who use AI say that it helps them save time (90%), while 85% say it lets them focus on high‑value work, and 83% say it makes their work more enjoyable.

Operators still need to build strong local teams. Asset managers still need to shape the story behind the data. But now they can do it with confidence, because AI deepens their understanding and shrinks the gaps between strategy and execution.

In a market where every decision impacts NOI, the advantage goes to teams who can act quickly and with certainty. AI refines that expertise, rewarding the teams who put it to work.

‍

The Opportunity Cost of Doing Nothing Is Growing

It’s easy for portfolios to lose serious revenue when operating on guesswork. Even a minor discrepancy between market and in-place rents can cost tens of thousands of dollars per month.

‍

When teams navigate without a map, they risk missing leasing targets and reacting too late to market shifts, often discovering the damage only at the end of the quarter. Meanwhile, competitors can gain ground by:

‍

• Automating asset reporting.
• Flagging missed revenue daily.
• Seeing exactly what’s causing pipeline drag.

‍

The good news is that you don’t need a data science team to keep up. You just need the right tools.

The most effective revenue intelligence platforms help you surface issues early, course-correct fast, and turn potential blind spots into wins, so your portfolio stays ahead of the market.

‍

AI Is Table Stakes For Multifamily Now

Multifamily has always been about smart judgment and strong execution. Those fundamentals haven’t changed. The tools you can use to achieve them have.

In 2025, AI is no longer experimental. It’s an operational standard that directly impacts revenue and investor confidence. The teams that adopt it now will move faster and build resilience in a tighter market.

‍

That’s where Rentana comes in.

‍

Our platform is built specifically for multifamily, combining operational, leasing, and financial data into one real-time view. Rentana’s AI doesn’t just show you what’s happened, it predicts what’s about to happen, so you can:

‍

• Capture missed revenue before it disappears
• Optimize lease-ups without guesswork
• Keep renewal rates aligned with market conditions
• Answer investor questions with confidence, backed by live data

‍

For investors and operators, Rentana delivers the speed, accuracy, and insight that turn AI from a buzzword into a measurable competitive advantage.