How Do You Know if an AI Solution Will Drive ROI? We Have the Answers.

While many GenAI solutions offered to community association management companies claim to revolutionize operations, how do you determine if an AI solution will actually generate revenue for your management company?

The answer goes beyond a simple upcharge. Real revenue impact comes from efficiency gains, cost savings, and improved client retention. Here’s how management companies should evaluate the financial impact of a GenAI solution before making an investment.

The Four Key Revenue Factors of GenAI

 

1. Labor Savings

GenAI solutions can significantly reduce the time spent on labor-intensive tasks like collections management, payment processing, and administrative support. Beyond hype and buzzwords, a solution offered to a management company should have quantifiable results in labor savings that can be cut from the organization or reallocated to better opportunities. One should be able to: 

 

• Calculate the saved hours per month and year from automating manual workflows.
• Estimate how many full-time employee (FTE) hours are reallocated to higher-value work like client engagement and business growth.
• Determine if the solution reduces headcount or repositions staff to more impactful areas.

 

Whether a management company executive is trying to cut headcount or reorganize staff needs, these long-term goals should be easily calculated with a new solution offering.

 

2. Expense Reduction

GenAI can directly cut costs related to outdated manual processes where expenses can escalate quickly – both for a HOA/COA Board and for the management company. When evaluating a new solution, one should be able to:

• Measure cost reductions such as lower legal fees and fewer escalated cases.
• Assess how automation reduces compliance risks and prevents financial penalties.
• Factor in savings on postage, printing, and administrative overhead from automated workflows.

 

3. Decreased Manual Effort

Routine, repetitive tasks like payment reminders, homeowner requests, and financial reporting can be automated through GenAI solutions, leading to:

• Faster processing times and fewer errors.
• More time for property managers to focus on client relationships.
• Increased operational efficiency across all financial workflows.

 

The savings in manual effort across various departments should be easily quantified by a new GenAI solution.

 

4. Client Retention & Satisfaction

Finally, satisfied HOA/COA Boards and homeowners mean longer contracts and more referrals. AI-driven tools improve:

• Personalized communication that keeps boards informed.
• Faster issue resolution, reducing frustration and backlogs.
• Proactive financial management, helping communities maintain financial health.

 

When evaluating a new solution, management company executives should consider the increased return on client retention and new client opportunities. This can be estimated for future long-term growth, especially when considering the ways in which the management company will promote the technology to their clientele.