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How to Calculate ROI on Property Management Automation

A step-by-step framework for measuring the value of automation investments

Why ROI Calculation Matters

Automation requires upfront investment, and you need to justify that investment to yourself, your partners, or your owners. But beyond justification, a rigorous ROI analysis helps you:

Prioritize which workflows to automate first based on return potential
Set realistic expectations for timeline and benefits
Measure actual results against projections
Make the case for expansion once you prove initial value

The framework below helps you calculate ROI comprehensively, accounting for all costs and benefits—not just the obvious ones.

The Three Components of Automation ROI

Every automation delivers value in these three ways

Time Savings

The most immediate and measurable benefit of automation

Staff Hours Saved

Formula

Hours per task × Tasks per week × 52 weeks

Example

2 hours × 50 renewals/week × 52 = 5,200 hours/year

Value of Time Saved

Formula

Hours saved × Fully-loaded hourly rate

Example

5,200 hours × $35/hour = $182,000/year

Revenue Impact

How automation directly increases your top-line revenue

Increased Renewal Rate

Formula

(New renewal % - Old renewal %) × Units × Avg rent × Months saved

Example

(98% - 85%) × 500 units × $1,500 × 1 month = $97,500

Faster Rent Collection

Formula

Reduced days to collect × Units × Daily rent × Interest rate

Example

5 days × 500 units × $50/day × 5% = $62,500

Cost Reduction

Direct cost savings from operational efficiency

Reduced Turnover Costs

Formula

Prevented vacancies × Turnover cost per unit

Example

15 prevented vacancies × $3,500 = $52,500

Lower Error Rates

Formula

Errors prevented × Cost per error

Example

100 errors × $250 = $25,000

Complete ROI Calculation Example

Real numbers from a 500-unit portfolio implementing 4 core workflows

Investment (First Year)

Workflow Build Costs$4,000

Monthly Subscription (×12)$24,000

Implementation & Setup$5,000

Training & Change Management$2,000

Total Investment$37,000

Returns (First Year)

Time Savings Value$182,000

Increased Renewals$97,500

Faster Collection$62,500

Reduced Turnover$52,500

Error Reduction$25,000

Total Returns$419,500

Net Benefit (Year 1)

$382,500

ROI Percentage

1034%

Payback Period

1 months

Beyond the Numbers: Intangible Benefits

While the financial ROI is compelling, automation delivers additional value that's harder to quantify but equally important:

Competitive Advantage

Faster response times and better communication help you win and retain both tenants and property owners in a competitive market.

Scalability

Automated operations let you grow your portfolio without proportionally growing your team. The same staff that manages 500 units can manage 1,000.

Employee Satisfaction

Removing tedious, repetitive work improves job satisfaction and reduces turnover. Your team can focus on interesting, meaningful work.

Data & Insights

Automated systems capture data that helps you spot trends, identify problems early, and make better strategic decisions.

Consistency & Quality

Automation ensures every tenant and owner gets the same high-quality experience, regardless of which team member is involved.

Ready to Calculate Your ROI?

Use our interactive ROI calculator to see what automation could mean for your portfolio

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