January marks the beginning of a new chapter for the property management industry, and with it comes a fresh focus on technology, compliance, resident expectations, and serving client communities better than ever. Having adjusted to the changes brought on by the pandemic, property managers are looking ahead to what’s on deck for 2026: a continuation of industry consolidation, changes in local government, compliance with local laws, on-demand deliveries, and advances in AI.

​According to Marc Kotler, president of FirstService Residential New York, “The property management industry as a whole is ever-changing. We’ve recently seen a bunch of consolidation. With the new local laws focusing on energy, technology, and sustainability—I think firms have to step up their game.” 

Managers note that the industry is becoming more professionally-focused. “People need very specific skill sets to complete this work,” says Kotler. “Managing a building requires expertise in financial and asset management, physical plant management, payroll processing, and human resources. There are so many hats you need to wear to manage a building effectively, and people need to be properly trained to be able to do this.”

​At the building level, legislation is in the spotlight. Daniel Wollman, CEO at Gumley Haft notes, “There’s been a series of local laws instituted in 2025 that are changing the industry and making it more expensive for buildings that are not required to make changes to comply. There are bills in front of the city council, some we’ve seen before, which may pass.” 

Wollman also notes the imminent change in government leadership, with mayor-elect Zohran Mamdani succeeding current Mayor Eric Adams, as a source of some uncertainty for the industry. “Some people think that upper-class luxury homeowners will flee the city, and there will be a preponderance of sales and open houses,” says Wollman. “It’s hard to predict, but I think people will wait and see what happens. I don’t think people are going to start selling their co-ops in January.”

​Compliance Requirements & New Legislation

​Tightening local law compliance requirements and new legislation have also become a central focus for property management pros. According to Wollman, “If you look at Local Law 97, bringing down carbon emissions is a great idea. The misguided part is figuring out how to get to where you want to go. Buildings can’t be completely electrified: there isn’t enough power in the street. In a 75-year-old building, it’s just not feasible. Even super-luxury buildings are not going to spend multi-millions of dollars on retrofitting. They’d sooner pay the carbon tax.”

Wollman goes on to say that some buildings may never be able to afford what laws like Local Law 11 (also known as FISP) require. “It’s hard to figure out how this will all play out. We haven’t jumped into any massive projects, as lawsuits are pending and the government is changing; we think there may be changes to the law.”

​In New Jersey, Andrew Batshaw of Corner Property Management says that from a legislative standpoint, structural reserves are the biggest issue right now. “I see boards, attorneys, and accountants confused because legislation is always changing,” he says. New Jersey is doing so much to require structural inspections, which is fantastic for structural safety. Then you look at Pennsylvania, and they require reserve funds but no requirement for reserve studies. You’re telling a board they need this line in their budget, but you’re basing it on a best guess. I’m hopeful Pennsylvania will catch up and recognize that reserve studies are important.”

​Staying ahead of guidelines and deadlines has become something of a full-time job for many companies. “We are always keeping our eye on local law deadlines,” says Kotler. “If you miss them, the fines that can be charged are impactful.” He also cites the Co-op Reasons Bill, a key piece of proposed legislation that would require cooperative boards to provide rejected prospective buyers a written explanation within 30 days for why they were rejected. “This will also be an impactful bill for co-ops,” he says.

​The Pandemic Shift

​The pandemic completely reshaped the way people live and work, moving millions of people to working remotely wherever possible. Many people never returned to an office, meaning they’re spending even more time at home. “In the daily life cycle of the building, you used to have people leaving the building in the morning and coming home at night,” says Kotler, “and now you have so many more people in the building still during the day. That’s shifted the way services and amenities are provided. Common areas that were being used primarily early in the mornings and evenings are now being used throughout the day. It really has changed the daily cycle and way buildings operate.”

​Many buildings have adapted by creating spaces where people can work from their buildings and have some privacy. Libraries, podcasting studios, Zoom rooms, and workspaces have all popped up as popular amenities.

​“If you look at it from the management firm side, we went 100% remote and then hybrid remote,” says Kotler. “We went all-in on technology and created an office environment that allows our associates flexibility, which I would say is the new normal. Some buildings have employees back five days a week—but we don’t think that’s the right balance at this point. On the building side, we still have a tremendous number of people working from home.”

​Georgia Lombardo-Barton, president of New York-based Barton Management, notes that the pandemic shift to remote and Zoom-based meetings has become the norm, making it easier and more efficient to schedule multiple meetings with vendors, board members, annual meetings, engineers, etc. “Although the workforce grew accustomed to remote working, a hybrid arrangement of in-person and remote work fortifies the responsibilities and accountability of office staff,” she says.

​Management companies have had to adapt to this new work-from-home environment, adjusting oversight and ways of monitoring productivity. “It’s changed us,” says Batsaw. “I’d say for the better, because it’s made us realize that some things do work—like virtual meetings. In the past, some of our managers had to drive an hour home after board meetings, but now they can attend virtually. It’s not hurting anyone, and the work is still getting done.”

​Managing Deliveries 

The pandemic also pushed delivery services into overdrive, leaving property management and onsite building staff to figure out how to rise to the logistical challenge. “We’ve seen newer buildings creating larger storage spaces, because in older buildings, the space is just too small,” says Kotler. “Moving a package from the time it gets to the building to someone’s hands is the key. If you have staff available, you can bring packages straight to a unit, but there’s a cost to that you have to balance.”

​Batsaw suggests that package technology is putting “bells and whistles” on what already exists. “What I’m actually seeing is people swinging back a little on the package route,” he notes. “There are so many packages that you can’t possibly have a large enough room to store everything. Many buildings are going back to manual door delivery, bringing packages directly to units. That way, you don’t have a line of packages in the package room sitting at the end of the day, or overflowing into the lobby.”​

“I think people are also starting to rely on self-service package rooms more,” he adds. “If you have a community that can support self-service packaging and people are on the honor system, it’s a great way for a building to save some money and still have the service.”

Setting the Bar

​When it comes to service, Lombardo-Barton says keeping residents informed as quickly as possible is the ultimate. “It sounds simple, but requires discipline to transmit information timely and when necessary,” she says, “with sufficient advance notice and oftentimes, with reminders.”

​While the fastest forms of communication used to be a phone call or a fax, email and texting have shrunk response times to a much smaller window. “People expect response time to be much quicker,” says Kotler. “There’s a difference in how the service is delivered. Some people only want to communicate by phone, some only by email, some don’t even want to speak to a human, and they’re fine with AI technology.” The key to striking the right balance and frequency comes down to knowing your communities, understanding their needs and expectations, and reading the room accordingly. 

​You can’t talk about technology these days without acknowledging the advancement of AI integration. Technologies like Homeowner Digital Assistance (HODA) allow people to get information and manage a wide array of functions in their building, from paying common charges to reserving the community room, and get accurate and up-to-date information about meetings, maintenance issues, elections, and more.

“Our goal,” says Kotler, “is to simplify the lives of our residents, whether it’s paying their bills or gathering information. On the property management side, we want to simplify their lives and how they do their jobs. Technology and AI can help with laborious jobs like coding invoices, saving a lot of time.”

Batsaw agrees. “Every software company is selling an AI platform now,” he notes. “With private equity coming into the industry, we’re seeing a push for AI. AI is a powerful tool, but I think there are companies out there looking to use it to boost margins and the bottom line.”

​And AI certainly has its faults. Batsaw continues, “To me, it loses the personal touch. This is still a people business. I have not seen AI implemented and used to full effect. On the financial side, to help build budgets or put spreadsheets together, it’s great,” he says, “but people become too reliant on AI and lose the ability to have interpersonal communication. I see a lot of managers using AI to write emails, and then they get into a meeting, and they can’t talk or think on their feet.”

​Keeping Up with the Joneses

​According to Kotler, the shifting economic and social currents means that “we have a lot of international buyers in NYC, and new buildings where the bar is set very high, and we want to make sure we are keeping up with the Joneses, so to say. Modern property management is a combination of the hospitality and management worlds. We work with people who have been trained specifically in hospitality. Sometimes, we need to be trained and invested in understanding the specific nuances of each building. If we can provide that training to our boards, we can deliver the type of service residents envision.”

​In a time when instant gratification is rewarded and expected, property managers have to consider how that relates to their buildings and residents and determine where the greatest value lies. “Everyone is looking for the next bigger and better thing, when a lot of the answers are right there for us,” says Batsaw. “We try to fix the really big things instead of looking for easy fixes first. I’ve always told my managers to look for low-hanging fruit—the things that are tangible that people can look, see, and feel. Something as simple as an interactive ‘count the candy canes in the lobby’ game can go so much further than three extra shelves in the package room.”

​“I think about all the things we didn’t have when I was a kid that we have now,” he continues. “Computers in our pockets that are more powerful than anything we even considered having in our house. It’s made us so accessible, but also created expectations that aren’t reasonable or lend to a healthy work-life balance for people.” 

Finding the right balance can be a challenge. “You almost need to level-set expectations,” says Batsaw. There should be a standard. If there’s a true emergency, that’s where management companies and boards have to educate residents. A true emergency warrants a call to 911, not the property manager.” Wollman agrees: “People contact you 24 hours a day. That’s been going on for years, but it makes the job more rigorous, more consuming.”

​What Makes it All Work

​Working with engaged board members helps managers provide better service to their buildings. The property management team wears many hats, and it’s really the partnership with the board that makes things run effectively. Part of that is helping residents understand what it takes to keep their building running smoothly. 

“It takes a considerable amount of time and behind-the-scenes work to educate boards about what’s required to comply with NYC local laws, which have multiplied over the years and carry strict, costly deadline-based penalties for noncompliance,” says Lombardo-Barton, “It’s a component of management that was almost nonexistent 10 years ago.”

​Fundamentally, it’s about making sure assets are increasing in value, and that residents are happy in their homes, says Kotler. “Homeownership is an emotional thing, and you have to keep that in mind when making decisions on such a high-value asset. Anyone in property management should have the same mindset.” 

​“It’s about relationships,” says Batsaw, “It’s a great industry where you can actually make an impact on people.”

​“There’s so much more expectation of property management now, which means we need to be smarter, more responsive, and more efficient,” Wollman says. “I like it when the clients are vested in the process; it makes it better. You can’t do it by yourself. People need to get involved in their building. Those buildings are better-run buildings.”         

​Kate Mattiace is associate editor of CooperatorNews.