After a couple of sluggish years, multifamily operators know they need to stay flexible as they budget for marketing and other priorities in 2027.
“Rather than treating advertising as a static annual expense, we increasingly manage spend dynamically based on inventory, traffic, conversion and market conditions,” said Melanie French, CEO of RR Living. “When a community needs additional demand, we can accelerate investment and when occupancy and traffic are strong, we can pull back.”
Across portfolios, managers are scrutinizing recurring expenses, protecting spending on retention and maintenance, and asking whether existing technology justifies its cost. Rent projections vary by market, leaving little room to count on a broad rebound to cover inefficiencies.
Balancing rent growth with expenses
Bell Partners considers local supply and demand, a property’s historical performance and its pricing relative to competitors when budgeting.
“We expect rent growth to improve in 2027, but performance will continue to vary significantly by market and submarket,” said Wende Marshburn-Smith, senior vice president of operations at Bell Partners. “That’s why Bell budgets from the property level rather than relying on broad national assumptions.”
Marcie Williams, chief strategy officer at The Bainbridge Cos., expects modest rent growth next year as its markets continue to absorb new apartments, with stronger growth returning in 2028 as deliveries slow. That puts more weight on occupancy and renewals than on large increases for incoming residents.
The same cautious rent outlook is putting more weight on day-to-day operations at CAPREIT, according to its president, Jennifer Kadish Cassell.
“Strong rent growth previously gave operators more room to absorb inefficiencies; in the current environment, operational excellence matters more,” Cassell said. “Our 2027 budgets reflect that shift through conservative rent assumptions and a greater emphasis on disciplined execution.”
Challenging expense lines and building flexibility
Managers are also questioning expenses that have rolled forward from one budget to the next.
For example, Cheree Lujan, executive vice president of student and market operations at The Michaels Organization, noted her team is examining vendor contracts, recurring charges and potential duplication.
“We’re spending more time looking at each property individually and really understanding where the money needs to go,” Lujan said. “I think the biggest difference this year is that we are much more intentional and really challenging every line item instead of carrying forward what we did last year or the year before.”
That scrutiny does not mean deferring every expense. Lujan identified insurance, utilities, repairs and labor as difficult to forecast. “Preventive maintenance is also a big focus,” she said. “I always say, spending the right money upfront can keep you from having a much larger expense later.”
Bell also sees insurance, property taxes and utilities as particularly uncertain. Marshburn-Smith said the firm relies on historical trends and re-forecasts during the year. If rent growth or occupancy misses expectations, the firm would first review discretionary spending, vendor contracts and marketing effectiveness while trying to preserve resident service.
“We view a budget as a guidepost, not a static document,” Marshburn-Smith said. “Our goal is always to protect NOI while preserving the quality of the resident experience and the effectiveness of our onsite teams.”
RMK Management Corp. plans to put more emphasis on training, prospects and resident communications in 2027. After an aggressive two years of technology spending, the Midwest manager intends to slow new purchases and monitor its existing tools.
“We plan to spend less on tech in the coming year,” said Diana Pittro, executive vice president of RMK. “We plan to focus more on people, new prospects and better resident communications.”
Technology’s return test
Other operators still plan to invest in AI and automation, but their emphasis has shifted from adding software to making existing systems work together. For instance, Bell is prioritizing tools that improve productivity, decision-making and resident service, while becoming more selective about products that add complexity without measurable benefit.
Williams at The Bainbridge Cos. noted the company has brought in an AI consultant to work with its teams and chief information officer. It is investing in faster, more personal responses to prospects and residents, aiming to build loyalty from move-in through renewal. CAPREIT, meanwhile, plans to increase spending on technology infrastructure, data and employee development while reviewing redundant or underused platforms.
“The question is no longer simply what new software to add, but how to get more from the tools we already have while investing selectively in capabilities that improve performance,” Cassell said. “We see AI as a tool that supports our teams rather than replaces them.”
Lujan wants tools that improve leasing follow-up, delinquency management and visibility into property operations, while also seeking evidence that they actually help employees.
“I am a big believer that technology should make the onsite teams’ jobs easier, not just give them another platform to manage,” Lujan said. “So, if we have overlap or something isn’t producing results, we’re going to evaluate and question whether we still need it.”
RR Living is applying the same test to marketing, automation and other legacy expenses, asking if they can improve revenue, retention, efficiency or satisfaction at a particular property.
“Our budgets need to be achievable rather than aspirational,” French said. “We would rather build realistic revenue assumptions and create upside through strong execution than depend on aggressive rent growth to make a budget work.”
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