Peter Lohmann's Newsletter - Issue #188

How Defensible are Property Management Companies from AI?

A couple of things are going on right now:

1. Property managers are vibe-coding their own solutions to replace expensive SaaS (software) products.

2. Property managers are implementing AI-powered software (whether vibe-coded or commercially available) that is displacing human labor within their companies. Typically, this doesn’t look like layoffs; rather, they’re able to grow without hiring (or without replacing team members as they turn over).

Sounds awesome, and it is. All of this looks rosy from the perspective of the PM business owner.

But I’ve had this gnawing feeling that there’s an entire other side of this that we aren’t discussing, and many aren’t even aware of.

The very AI that we’re using to buttress our profit margins can just as easily be used against us… by our owner clients. And I’m not talking about getting emails from them written by ChatGPT.

I’m talking about owners vibe-coding their own PM management software system, and a new generation of AI-powered software built specifically for the self-managing residential landlord. If this isn’t happening yet, it’s about to start. I guarantee it.

I can already hear the objections…
“We’re a “boots-on-the-ground business!”
“There are elements of what we do that can never be handled by AI or software!”

But property owners are just as smart and creative as we are, and what’s more, they don’t mind doing a little boots-on-the-ground work (or hiring a contractor to do so) if it means full control over their property and saving thousands on property management fees each year.

This is a classic "Innovator's Dilemma" situation. We're the super-powered incumbent who dismisses a newer, less-sophisticated and cheaper entrant. We need to be very careful about this. 

So here's what I'd actually think about: If your owner client got access to the same AI tools you're using (and hired a handyman for the boots-on-the-ground stuff), what would they still need you for? If you can't answer that clearly, that's your homework.

I don’t know what the solutions are, but I want to get this topic on the table for discussion.

GTD Was Always a Superpower. AI Just Made It Obvious.

Most property managers I talk to are drowning in email, forgetting meetings, and wondering why they can't seem to get ahead (even as they invest in more tools, more staff, more everything).

Jon and I think the problem is upstream. In this episode, we dig into something we've been calling the "security layer" of personal productivity: until your own organizational system is solid, you cannot take a break, you cannot delegate effectively, you cannot even think straight about where to deploy AI in your business. We get into why GTD (Getting Things Done) is the connective tissue of leverage, how Jon is building an AI-powered GTD coach that runs your weekly review like David Allen is sitting next to you, and why weaponizing AI against your actual constraint beats writing tweet threads about it every time. Check it out:

(Also available on Apple Podcasts & Spotify)

Property Management Companies For Sale This Week

• 40-year PM company in Los Angeles, CA (asking $1.1M, ~$870k annual revenue)

• HOA management business in Austin, TX with long-standing operations (asking $950k, $260k gross revenue)

• 110-unit residential PM portfolio spanning Sacramento & San Francisco, CA (asking $500k, ~$300k annual revenue)

• 26-year PM business in Aspen, CO (asking $900K)

Sponsored by Haven AI. Your maintenance coordinator spent 2 hours this morning relaying messages between a vendor and a resident. Haven’s AI agents handle that coordination automatically - so your team only touches the work orders that actually need them. Read more here.

Industry News & Events

• Workers at HUD are speaking out about fair housing enforcement being effectively halted. Fair housing laws have been stretched beyond their intended limits in a few cases, but are a net force for good and should continue to be enforced. This needs attention.

• Mesa Residential has come out of stealth and is hiring for M&A roles. They’re a notable PM rollup group not least because 2 of the partners are former AppFolio board members.

• Woman arrested in rent-to-own fraud case. A North Carolina woman was arrested after allegedly running a rent-to-own scheme on a property she didn’t own.

Closing Thought

A few quick things before you go…

• Last week’s issue went to 21,481 readers (48.8% opened, 4.2% clicked)

• The most popular link was about the new AI Quickbooks Alternative (183 clicks)

• Property managers: Your professional trade association is NARPM. You need to join if you’re not already a member.

• Did someone forward you this email? Subscribe here.

Software I’m using to scale my 700+ door property management company:

Note: These are affiliate links, but I’ve been recommending all these companies long before any financial arrangements came into place.

The content of this newsletter is for informational purposes only and does not constitute professional advice. I may have consulting agreements with, or financial interests in, companies mentioned in this newsletter. Additionally, some of the links included in this newsletter are affiliate links, meaning I may earn a commission if you make a purchase through these links. Always perform your own due diligence before making any financial or business decisions.