The rental market is evolving at a higher velocity in 2026, demanding smarter strategies, sharper tech, and a fresh approach to growth.
According to our 2026 State of the Property Management Industry Report, this year’s market will reward companies that adapt quickly, while those relying on yesterday’s growth and operating models risk falling behind.
How do we know this? We surveyed more than 3,200 property management professionals, rental owners, and renters across the U.S., plus interviewed property management company leaders, a rental economist, and an industry consultant.
What did our research find? From accelerating AI adoption to shifting owner expectations and tighter margins, the rental market is entering a more disciplined—and more competitive—phase.
Which trends do you need to be aware of this year? Our 2026 rental market predictions span everything from the rise of subscription-based services and preventative maintenance to a surge of Accidental Landlords entering the market.
For property managers, the message is clear: The ability to adapt early will define who grows—and who stalls—in the year ahead.
Ready? Let’s dive in.
1. Property Managers Will Cautiously Expand Their Use of AI
AI is no longer just a buzzword—it’s increasingly present in many property management companies’ daily operations. Our Industry Report shows a leap from 20% to 58% of companies using AI between 2024 and 2025, and that number has undoubtedly kept climbing.
Most managers are still dipping their toes in, using tools like ChatGPT to draft communications and property descriptions, but only 8% have fully automated any workflows. The real game-changer will be agentic AI: think digital assistants that don’t just respond to prompts, but actually anticipate needs, kick off actions, and automate complex tasks—freeing up your team to focus on building deeper relationships with clients.
The key? Moving forward thoughtfully, balancing automation with the human touch that sets your business apart from the competition.
How to put this trend into action:
- Start small—use AI for repetitive tasks like drafting listings or summarizing documents.
- Consider expanding your use of AI to automate things like rent reminders and renewal offers as you get more comfortable.
- Always keep a human in the loop for anything related to your company’s compliance, reputation, or customer experience.
- Consider software with built-in AI and customization tools that work across your most important operations, so you can choose where to introduce new capabilities into your workflows.
2. Property Managers Will Investigate Subscription Models
Imagine offering your clients a simple monthly plan that covers everything from pest control to filter changes and carpet cleaning. Subscription-based services are gaining serious traction as property managers look for new ways to add value and generate steady, recurring revenue.
Whether you deliver these services in-house or team up with local vendors, bundled packages make life easier for owners and residents—and help your business stand out in a crowded market. Our Industry Report spotlights real-world examples of companies using preventative maintenance subscriptions to solve everyday headaches and boost retention.
How to put this trend into action:
- Build a bundled subscription package for your most-requested services.
- Survey your clients to find out what matters most.
- Pilot a monthly plan that delivers real value and keeps your customers coming back.
3. More Accidental Landlords Will Enter the Rental Market
The sales market is cooling, and that means more homeowners are turning unsold properties into rentals—creating a wave of Accidental Landlords. These folks often have little experience with regulations, maintenance, or tenant screening, and they’re actively seeking professional help.
Our Industry Report reveals that 22% of rental owners fell into this category as of 2025, with an additional 16% starting out as Accidental Landlords before becoming investors. As property management leader Troy Dodgion explains in the report, “Almost 100% of our agent referrals right now are Accidental Landlords that can’t sell their home and want to rent it out.” For property managers, this is a golden opportunity to grow your client base and offer real value.
How to put this trend into action:
- Create starter packages for Accidental Landlords—think rental income estimates, basic management services, and educational resources.
- Build partnerships with brokers to tap into this growing pipeline of new business.
4. Adoption of Preventative Maintenance Strategies Will Accelerate
If you ask rental owners what stresses them out most, maintenance tops the list—38% say it’s their biggest pain point. More than half work with a property manager specifically for help in this area.
Our Industry Report shows that managers are stepping up with preventative maintenance plans that focus on regular upkeep and early intervention, cutting down on emergencies and protecting property values. Some companies are even using AI and analytics to spot recurring issues and budget proactively.
As consultant Kelli Segretto notes in the report, showing owners the cost difference between preventative services and emergency repairs can really drive home the value.
How to put this trend into action:
- Launch a tiered preventative maintenance program with clear pricing and service levels.
- Use data to identify common issues, scheduling maintenance proactively.
- Share before-and-after results to prove your impact.
5. AI-Driven Rental Fraud Will Continue to Proliferate
Rental fraud is getting smarter—and more common. In 2025, RealPage found that 75% of property management companies reported an increase in fraudulent applications, and research by Celeri shows that 1 in 10 rental applicants provides fake documents.
With AI-generated paystubs and bank statements flooding the market, advanced screening tech is now a must-have. According to our Industry Report, tenant screening tools are the second-most valuable technology in the industry, right behind online payments, and companies are using AI-powered solutions to spot fraud in seconds and avoid costly mistakes.
How to put this trend into action:
- Invest in robust tenant screening platforms that use AI to verify applicant data and flag suspicious documents.
- Train your team on fraud detection.
- Keep your screening criteria up to date.
6. Costs Remain Elevated, But the Rate of Increase Will Slow
Good news: While RealPage found that operational expenses have jumped 39% since the pandemic began, the rate of increase is finally slowing down.
Property managers are fighting back through proactive budget planning, renegotiating vendor contracts, and rolling out preventative maintenance strategies to cut emergency repairs. At the same time, they’re boosting resident engagement by improving response times and offering self-service options—moves that can lower overhead and keep tenants happy.
The secret to healthy growth and client trust? Stay nimble, keep costs predictable, and never stop looking for ways to deliver more value.
How to put this trend into action:
- Review vendor contracts and insurance policies every quarter, negotiate better rates, and use cost-tracking dashboards to spot savings opportunities.
- Lean into preventative maintenance and tech adoption to keep expenses in check and reassure owners.
7. Resident Retention Will Remain Higher Than in Recent Years
Residents are sticking around longer, and that’s great news for property managers. Retention rates are hitting all-time highs, according to our 2026 Industry Report, which means less money spent on marketing and turnover, and fewer vacant units.
Companies are investing in resident benefit packages, strategic pricing, and proactive maintenance to keep tenants happy and loyal. As economist Carl Whitaker put it in the report, “Resident retention has become a key industry sub-theme in recent years, especially as this is a partially-controllable lever that operators can use to mitigate the costs of turnover.” Focusing on engagement and satisfaction is the key to long-term success.
How to put this trend into action:
- Roll out a resident loyalty program with perks like rent reporting, filter delivery, or renewal bonuses.
- Regularly survey tenants for feedback and use their input to improve your retention strategies.
- Consider flexible lease renewal options and personalized incentives to encourage long-term tenancy.
8. Property Managers’ Growth Will Focus on Quality Over Quantity
Growth is still on the agenda for 2026, but property managers are getting smarter about how they expand. Instead of chasing every new door, companies are focusing on sustainable, quality growth—choosing clients who fit their business, and letting go of accounts that drain resources.
Our Industry Report shows three-quarters of companies plan to grow, but most are aiming for a manageable 25% or less. The secret? Operational discipline. Expanding without the right systems and staff can hurt service and margins, so the best firms are balancing growth with a commitment to delivering exceptional value.
As property management leader Dave Gorham put it in the report, “[We’re focused on] quality over quantity. We’ve spent two years shedding clients that weren’t a match, slowing down our onboarding to find the right ones who stay longer.”
How to put this trend into action:
- Review your client list every quarter and let go of accounts that aren’t a good fit.
- Focus your growth efforts on property types and markets where your team shines.
- Encourage referrals from happy clients.
- Use tech to streamline onboarding and service so you can scale without losing your personal touch.
9. Regulatory Expertise Will Give Companies a Competitive Edge
Rental regulations are getting more complex every year, and owners are feeling the pressure. That’s why property managers who stay on top of local laws—and help clients do the same—are in high demand.
Our Industry Report highlights that in 2025, 33% of rental owners hired a property manager for compliance expertise, up from just 21% in 2021. Trade organization memberships and legal partnerships are now essential.
By positioning yourself as the go-to expert on regulations, you build trust and make your services indispensable in a tricky legal landscape.
How to put this trend into action:
- Subscribe to updates from local and national property management associations.
- Create short, easy-to-read compliance guides for clients.
- Offer webinars or newsletters to keep everyone informed and confident about changing regulations.
10. Technology Will Remain Key in Compensating for Elevated Costs
Tech isn’t just a nice-to-have—it’s the backbone of efficient property management. Half of companies say that technology adoption is their top strategy for cutting costs, and more than one in five are generating new revenue from tech solutions, according to our 2026 Industry Report.
Online payments, tenant screening, maintenance ticketing, and centralized platforms are helping managers streamline operations and deliver faster, more consistent service. But here’s the kicker: Most teams aren’t using their software to its full potential.
As consultant Kelli Segretto tells us in the report, “A lot of people are only using a fraction of what their software can do. Get on a call with your rep and find out what you’re missing—you’ll get time back to focus on what matters most.”
How to put this trend into action:
- Audit your tech stack and spot underused tools.
- Train your team on automation features, and set quarterly goals to boost adoption of high-impact technologies like online leasing and maintenance routing.
- Use analytics to track efficiency and cost savings.
11. Supply Growth Will Return to Levels Closer to the Late 2010s
After years of rapid construction, the rental housing market is finally settling down. According to RealPage’s Chief Economist Carl Whitaker, supply growth is expected to return to levels more typical of the late 2010s.
That means fewer new units coming online and a more predictable environment for property managers and investors. Long-term sentiment is positive, and as supply peaks (and potentially interest rates) fade, portfolio growth should become more achievable for property management companies.
How to put this trend into action:
- Focus on building strong relationships with current residents and owners as new construction slows and the market stabilizes.
- Stay plugged into local development news, and be proactive about communicating market changes to your clients so you’re ready to adjust your growth plans as opportunities arise.
12. Rent Growth Will Normalize as Construction Slows
With construction slowing and supply growth stabilizing, rent growth is expected to even out in 2026. Economist Carl Whitaker says the days of wild rent hikes and, alternatively, deep concessions are likely behind us, replaced by steadier, more consistent rent trends.
For property managers, this means a more balanced rental environment, where rent growth matches historical norms and market fundamentals.
Our Industry Report suggests keeping a close eye on local market conditions and adjusting pricing strategies to focus on retention and quality service.
How to put this trend into action:
- Benchmark your rents against local comps and historical trends.
- Use strategic pricing to balance profit with resident retention.
- Prioritize resident satisfaction by offering renewal incentives or flexible lease options as rent growth steadies.
- Stay nimble and adjust your pricing as needed to keep your properties competitive and your occupancy rates strong.
13. Uncertainty Around Interest Rates Will Grow Mid-Year
The Federal Reserve has chosen to lower interest rates slowly in the second half of 2025, in line with a softening labor market and persistent inflation—even under pressure from the current administration to bring rates down faster.
However, with Fed Chair Jerome Powell’s term ending in May, the new year could bring some changes to the board. In 2026, we may see the balance tip toward faster rate cuts, which could encourage rental investors to expand their portfolios once again.
If interest rates are lowered at a faster pace than the economy is able to absorb, though, we may see inflation heat up, making this a key economic trend to watch mid-year.
How to put this trend into action:
- Build flexibility into your business strategy.
- Prepare for multiple scenarios, with interest rate shifts likely to influence investor behavior and inflation risk still on the table.
- Stay in close communication with rental owners about market changes.
- Position yourself as a strategic advisor, ready to help owners navigate portfolio adjustments, financing decisions, and pricing strategies as the year unfolds.
The 2026 State of the Property Management Industry Report
2026 isn’t just another year—it’s a turning point for property management.
As our 2026 State of the Property Management Industry Report makes clear, the companies that thrive will be the ones that adapt with purpose. From launching subscription services to streamlining operations with tech, property managers have more tools than ever to grow sustainably and serve clients better.
The key is knowing which trends to lean into—and how to make them work for your business. With the right strategy and a willingness to evolve, property managers can turn today’s challenges into tomorrow’s opportunities. Download your free copy of the report now to learn more.
Buildium’s Commitment to Safe and Secure AI
At Buildium, we believe that AI should be a trusted extension of our platform–not a replacement for human judgement. Our approach to AI is grounded in transparency, education, and rigorous security standards. We deploy AI features with a clear focus: to automate routine tasks while preserving the integrity of sensitive decisions that require human oversight. Lumina AI is built for property managers who value efficiency, security, and trust. We’re not just innovating–we’re doing so responsibly.
Read more on Industry Research
