Centralization, AI, and the New Multifamily Operating Model

by: Multifamily Weekend Update 

At RETCON’s session, “The Centralization Blueprint: Setting Your Organization Up for Success,” moderator Sean Forster, an Industry Principal at AppFolio helped steer the conversation beyond systems and into something more foundational: change.

“Technology is a big part of this [centralization],” Forster said.

But his bigger point was clear—technology alone doesn’t make centralization work.

Centralization today is as much, if not more, about change management as it is about systems. It requires alignment across the organization earlier than most operators expect. Without that alignment, centralization risks feeling like something being done to onsite teams, rather than an investment in them.

That distinction matters.

When framed correctly, centralization becomes a way to remove friction—not autonomy. It creates space for onsite teams to focus on what they do best: building relationships and delivering better resident experiences.

That mindset shift showed up across the panel. CIM Group Vice President of Property Management, Maja Sofic captured the inflection point clearly: “You can tell when leadership stops defending the way things have always been done locally and starts focusing on the enterprise outcome.”

It’s less about tools and more about perspective.

From there, execution became the challenge and Forster reinforced a key theme echoed by others:  “Don’t let perfection get in the way of progress.”

Operators who succeed aren’t waiting to design the perfect model. They’re starting small, testing workflows, and iterating quickly. Tasks like deposit processing, tour scheduling, and application approvals become early proving grounds before scaling across a portfolio.

Frank McAdams, VP of Innovation at Veris Residential, underscored that same approach: “Don’t get caught in the minutia. Roll something out, learn from it, and refine as you go.”  At the same time, centralization is reshaping how teams think about talent.

Pegasus Residential, CEO Jackie Ware pointed to a long-standing reality: “That unicorn who can do everything perfectly is rare.” Centralization allows operators to separate responsibilities more intentionally—letting administrative specialists handle workflows while onsite teams stay focused on residents.

What’s different now compared to a decade ago is the role of AI.  Forster highlighted the maturity of AI as a major inflection point. Tasks that once required centralized back-office teams—or even offshore support—can now be handled through AI-enabled automation.  And as Ruchir Baronia noted, operators are now centralizing more than people: “data, processes, and communication channels” are all part of the shift.

But even as AI expands what’s possible, the panel stayed grounded in execution.  Ware offered a practical reminder: “AI sounds hands-off, but you still need someone responsible for making sure it’s working.”

Ultimately, the conversation made one thing clear:  Centralization isn’t about removing people.

It’s about removing the friction around them.  And when that friction is reduced—whether through better alignment, smarter workflows, or AI—onsite teams gain something incredibly valuable:  Time.

In multifamily, time turns into stronger relationships, better experiences, and communities that feel more connected.

That’s not just operational efficiency.

That’s a better operating model.