The Property Management Crossroads

This issue of Pillow Talk, our weekly newsletter, went out by email on May 21, 2026. Get the next one.

Hey friend,

Welcome to the 40th weekly edition of Pillow Talk! This is where I share my unfiltered thoughts on life, business, and property management.

This week, we’re discussing the two paths forward for PMs (plus sharing a very exciting announcement 👀)

Based on what I’m seeing online and what I’m hearing at conferences, there are two camps forming in property management right now:

1. Adopters
2. Resisters

Right now you’re thinking that I’m about to go on a rant about AI and whether you should or shouldn’t use it in your business.

Don’t worry, I’m about to go on a rant, but it’s not about AI (whew 😅)!

The Property Management Crossroads

Property management is changing in many ways. But I think most consequential is the emergence of premium property management. The divide I see is businesses who want to keep doing things the way they’ve always done them (resisters), and businesses who are adjusting to rising owner needs and expectations (adopters).

The resisters want to keep doing commodity property management. It’s been awhile since Econ 101, so as a quick refresher, a commodity is a good or service that’s identical to the competition. It’s interchangeable. Undifferentiated. Brandless. This is the type of property management that emerged from decades of PMs competing on price. In this environment, the winner was whoever did the same basic services as everyone else, but for less. The focus became process, automation, and cost savings. This strategy worked, but the downstream effects can’t be ignored. Lower prices = lower margins, and an inability to invest in service. Any investment that was made in service focused on the resident, and owners were left feeling like an afterthought, which is why client retention has emerged as a defining challenge for the industry.

Premium property management flips the script. Instead of competing on price, PMs compete on value. It’s a race to the top, and whoever can offer owners more value, wins. Owners are outright telling us this is what they want. The 2026 PM Trends Report found that upwards of 50% of respondents are willing to pay for a variety of premium services.

The number one way PMs can offer more value is at the top of that list: Asset management.

The economic crunch has shown owners that they need a real estate professional to help them improve income, protect downside risk, grow equity, and make better hold, renovate, refinance, buy, or sell decisions over time. No one is better situated to fill this need than residential property managers because of their “rare” alignment with the client. Recapping Jennifer Ruelen’s keynote in his Broker/Owner recap, Peter Lohmann put it this way:

“…real estate investors are getting their guidance from people whose paycheck ends at the closing table (agents, influencers, transaction-based professionals) - all of whom are structurally unable to tell investors the truth about what owning a rental actually looks like. Property managers operate under a completely different model. When the client makes money, we make money. When we do a bad job, we lose the contract. That alignment is rare in this industry, and we don’t talk about it enough.”

This is the crossroads: You can keep doing commodity property management, which is fine! It’s still possible to make money as the budget option.

Or, you can differentiate by crafting a premium experience and offering premium services. Those who do will earn more per door, attract higher-quality clients, turn those clients into loyal ambassadors, and drive more business to their brokerage.

The Future of Property Management

Property Management Inc. smelled this opportunity a while ago and has since made it a strategic priority. So much so that today, we’re very excited to announce that PMI is partnering with Blanket to help them bring Performance Management services to their residential clients! 🥳

Performance Management is PMI’s term for asset management, and it’s how they plan to monetize the advisory role many of their offices already fill. Blanket gives them the operational strength to consistently deliver service that goes beyond baseline expectations, and generates greater ROI for owner-clients.

“Property owners today expect more than basic management. Our partnership with Blanket allows us to equip our franchise network with cutting-edge tools that enhance transparency, improve communication, and ultimately drive stronger financial performance for our clients.”

- James Philipps, Executive Director of Residential and Commercial at PMI

I think this is a bold bet, and that PMI deserves big kudos for leading this shift and stepping up to guide owners toward greater success, and to show the industry what the future of property management looks like 💪

Good night 😴

Lior Abramovich
Co-founder, CEO