.png)
Centralization is transforming property management, yet misconceptions often hold operators back from adopting it. The reality? Centralization isn’t an all-or-nothing shift—it’s a strategic approach to streamlining operations, improving efficiency, and reducing costs. Today, we'll debunk six common misconceptions about centralization, illustrating our point with real examples of how operators of all shapes and sizes are currently leveraging a centralized model. Let's dive in.
.svg)
Centralization Misconception #1: Centralizing Requires a Total Organizational Overhaul
Many operators assume centralizing necessitates extensive organizational restructuring, plus a complete reinvention of your operational model and technology stack. In reality, incremental changes can drive significant results. Automating high-volume, low value tasks like lead follow-ups or work order creation can improve operating efficiency without disrupting your onsite teams’ day to day, while also enabling you to dedicate high value resources to more specialized tasks.
For example, reducing leasing staff from two to one by leveraging EliseAI’s AI-Guided Tours to expand touring hours, or assigning one maintenance lead across multiple buildings can create immediate cost savings. Centralization isn’t about doing everything at once—it’s about making smart, high-impact adjustments over time.
.png)
Centralization Misconception #2: Centralization Only Works for Owner-Operators
It’s often believed that owner-operators have an easier time implementing centralization due to having more operational flexibility and decision-making control. Cole Morgan, Strategy and Business Operations Manager at EliseAI, told us that he's "seen third-party managers unlock 25-40% in payroll savings for certain roles through centralization, proving that it can work across different ownership models." The key for fee managers is demonstrating clear NOI improvements to gain buy-in from property owners.
Successful fee managers implement centralization by:
- Highlighting cost savings and efficiency improvements.
- Structuring shared-savings pricing models.
- Offering tiered service options for flexibility.
- Starting with small, high-impact changes before scaling portfolio-wide.
Centralization Misconception #3: Centralization Only Works for Large Portfolios
While large operators may have led the shift to centralization, portfolios of all sizes can benefit. Whether an operator has 1,000 or 50,000 units under their management, centralizing components of your operations and leveraging force-multiplying AI technology can reduce staffing costs and improve operational efficiency while enhancing the resident experience. Even PMCs we work with that manage fewer than 2,500 units have seen 20-30% payroll reductions by centralizing administrative tasks and automating leasing and accounting functions.
In fact, smaller operators often have a competitive advantage when moving to a centralized operating model because:
- They have fewer teams and communities to restructure, making the transition smoother
- They’re capable of making decisions faster and require fewer teams to buy-in
- They require less change management overhead, since adjustments impact a smaller group of employees
Operators of all sizes that embrace centralization early can gain a first-mover advantage, allowing them to compete with larger PMCs without adding operational complexity. The ability to automate low value tasks and shift work to offsite teams is no longer a benefit reserved for the largest operators—it’s an industry shift that’s available to operators large and small alike.
.png)
Centralization Misconception #4: Centralization Is Best for Operationally Challenged Buildings
It’s a common belief that centralization is primarily for struggling properties, but high performing communities can also benefit from a centralized model. While underperforming assets may see immediate gains in efficiency and reduced costs, high-performing properties can leverage centralization to deliver consistent resident experiences, scale efficiently in spite of staffing volatility, and future-proof operations.
All properties can benefit from centralization through:
- Improving operational consistency – Standardized workflows reduce errors, eliminate redundancies, and ensure a seamless resident experience across the portfolio.
- Enhancing scalability – High-performing properties can replicate their success across new acquisitions, expansions, and teams without disruption.
- Identifying root causes of inefficiencies – Centralized teams can benchmark performance across properties, pinpoint bottlenecks, and optimize processes before they impact NOI.
We believe in including both high- and low-performing properties in centralization pilot programs to ensure a comprehensive approach to portfolio-wide improvement.
Centralization Misconception #5: Centralization Disrupts Operations in the Short Term
The fear of short-term disruption prevents many operators from centralizing, but a phased approach can mitigate initial missteps and accelerate how quickly operators start to see value. While there may be initial monetary investments in technology, these costs can be offset with payroll savings, improved operational efficiency, and termination of now unnecessary services like after-hours call answering. While the upfront change management effort will take time and effort, operators the EliseAI team have consulted with regularly report annual NOI savings of $150-$200 per unit through implementing centralized operations.
Operators leveraging centralized models generally see faster leasing response times, quicker maintenance resolutions, and higher resident satisfaction levels, but only when the rollout is done intentionally and strategically. Leveraging a phased approach to the centralization push helps PMCs identify issues early on and troubleshoot them before deployment at scale. Here’s what a sample phased implementation might look like:
.png)
Centralization Misconception #6: Centralization Only Works for Geographically Dense Portfolios
A common misconception is that centralization depends on a shared-services model where teams must be physically near the properties they support—such as leasing agents covering multiple communities within a tight geographic radius. While proximity may have once been a key factor in structuring operations, technology like EliseAI’s full suite of conversational AI products has alleviated these limitations, enabling centralized teams to operate effectively regardless of location.
With today’s AI-powered solutions, PMCs have more flexibility than ever in deciding who does what work and from where. Improved technology can route resident inquiries, optimizes staffing, and automates key workflows, allowing centralized teams to manage operations seamlessly without requiring a geographically dense portfolio.
Geographic density may have been essential in the past, but today’s AI-driven solutions provide more flexibility than ever by:
- Routing communications anywhere – Calls, emails, and chats are intelligently handled and directed to the right team members, regardless of location.
- Centralizing leasing – AI-driven self-guided tours and virtual leasing offices eliminate the need for on-site agents.
- Optimizing maintenance coordination – Automated scheduling and smart dispatching ensure timely responses across all properties.
- Standardizing workflows – Leasing, resident communication, and reporting remain seamless across locations.
- Expanding staffing flexibility – Remote-friendly roles improve hiring, retention, and resource allocation.
By leveraging AI-driven platforms like EliseAI, PMCs are no longer bound by traditional geographic constraints—reducing costs, improving efficiency, and enhancing service levels regardless of portfolio footprint.
The Centralization Bottom Line
Centralization isn’t about restructuring everything at once—it’s about taking strategic steps toward efficiency, cost savings, and better operations. Whether you manage a small portfolio or a national footprint, incremental centralization can drive immediate and lasting benefits. The question isn’t whether centralization works, but instead how you can best leverage centralized operational models at your communities.
Ready to explore what AI-enabled centralization can do for your business? Or just want to chat with us about how EliseAI can support your ongoing centralization journey? Get in touch with the EliseAI team today.