New research finds 80% of third-party multifamily managers centralizing operations

First research report about centralization and multifamily third-party managers

TAMPA, Fla., Feb. 19, 2025 /PRNewswire/ -- Funnel, the proven AI-infused CRM today announced the first-of-its-kind report on centralization for third-party managers researched and compiled by Dom Beveridge of industry consultancy, 20for20. The white paper sheds light on the real state of centralization for third-party managers: how they are adapting their business models, the constraints they face, and what's next for the industry.

The research, based on in-depth interviews with the industry's top third-party managers and asset managers, provides a detailed snapshot on the progress that third-party managers have made toward a more centralized operating model. While owner-operators and REITs led the charge in reshaping their operating models, third-party managers operate in a fundamentally different environment — where decisions require buy-in from multiple financial stakeholders. This report reveals how third-party managers are overcoming those barriers, and where the industry is still struggling to evolve.

"This study highlights that third-party management companies are at a pivotal moment," said Dom Beveridge, principal with 20for20 and author of the report. "Most of the firms interviewed are at some stage of offering a centralized operating model, which includes changing the commercial arrangements with their owners. A minority remain in a reactive mode, waiting for owners to dictate the terms. Third-party managers who don't offer a more centralized operating model will be at a disadvantage."

Key findings from the research:

• Administrative functions like resident account management, screening, and renewals are where third-party managers are making the most progress, and seeing the most adoption, unlike their owner-operator counterparts that focused on centralizing leasing functions first.
• Operators whose portfolios include both owned and third-party properties are making the most progress, using owned assets to test centralized models before rolling them out.
• Operators are moving away from the chargeback model, amending property management agreements to reflect a direct charging model for centralized services.
• AI-driven CRMs and automation tools are key enablers of centralization, with contact centers becoming commonplace as operators roll out centralized services.
• The most successful operators are rethinking property management from a first-principles perspective rather than forcing old staffing models into new centralized structures.

"Third-party managers don't have the same control as owner-operators, so their journey toward centralization is bound to be different. We can already see how that journey is unfolding rapidly in this sector," said Tyler Christiansen, CEO of Funnel. "This report proves that forward-thinking operators are reengineering their business models — moving from site-level staffing to scalable, centralized solutions that drive efficiency and improve the renter experience. Funnel is proud to support this shift through our proven AI-infused CRM which makes centralization possible at scale."

The white paper is available now.

About Funnel
Funnel provides a win to three vital groups: operators looking to improve efficiencies; onsite teams who demand a better long-term career; and renters who demand a better customer experience. Funnel's proven AI-infused CRM is the enterprise-grade solution industry leaders, owners, and operators trust to deliver a streamlined, consistent, and connected experience from first inquiry through years of renewals through the operational flexibility only a renter-centric® platform can provide. We call it Renter Management Software; our clients call it the new operating model.

About 20for20
20for20 is a consulting firm that helps technology companies reach multifamily customers and helps buyers make better technology decisions. We achieve this through constant dialogue with multifamily leaders and by publishing content that helps move the industry forward, including the 20for20 annual survey, in its seventh edition in 2025.

Media Contact:

Funnel
Hannah O'Leary
Sr. Manager Corporate Communications
[email protected] 

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SOURCE Funnel