AI in apartment market is taking over work orders, lease renewals and more

The rental industry is on the cusp of a revolution, driven by the increasing use of technology and artificial intelligence (AI). Gone are the days of landlords collecting monthly rent checks in person or tenants chasing after landlords to fix leaky toilets. Instead, software and AI are streamlining the process, making it more efficient and convenient for both parties.

The Rise of Rent Tech

One area where AI is making a significant impact is in virtual agents, which are being used to communicate with prospective residents. These virtual agents can act autonomously, making decisions based on the consumer’s queries. While this technology is still in its early stages, it has the potential to transform the way rental properties are managed and marketed.

AI is also being used to improve the investment side of the multifamily business, particularly in underwriting and acquisitions. For example, investors can use AI to analyze leases and extract relevant data, which can then be used to value a property. This can save a significant amount of time and resources, making the process more efficient and accurate.

Property Management and Development

AI can also help with property development and accounts payable. Multifamily developers often have to deal with multiple vendors, from landscaping to plumbing, and many still use paper invoices. AI-powered systems can read these invoices and repopulate the necessary data into the company’s payables system, making the process more efficient and reducing the need for manual coding.

Companies like PredictAP are already using AI to streamline the accounts payable process. By automating this process, companies can free up staff to focus on more strategic tasks, such as property development and investment.

Streamlining the Leasing Process

Another area where AI is making a significant impact is in the leasing process. Companies like Funnel are using AI to streamline the apartment marketing and leasing process, enabling multifamily professionals to generate more profits, efficiency, and insight across their portfolios. Funnel works with large apartment real estate investment trusts (REITs) and private operators to centralize the leasing process, making it easier for renters to find and rent properties.

AI is also being used to automate interactions across the portfolio, rather than just at the community level. For example, if a tenant is not renewing a lease at one community, Funnel’s AI system can suggest alternative properties in other markets, making it easier for renters to find a new home.

Challenges and Opportunities

Despite the progress being made, the technology is still in its infancy, and it’s expensive. Apartment operators and investors are in the experimental phase, and it remains to be seen how much they will invest in these new technologies. The multifamily industry is also highly fragmented, with close to 50 million rental units in the US, the majority of which are owned by small, often mom-and-pop landlords.

However, this fragmentation also presents opportunities for companies that can provide innovative solutions to the industry’s challenges. As the technology continues to evolve, we can expect to see more companies entering the market, and more investors taking notice of the potential for growth and returns in the rent tech sector.