Artificial Intelligence (AI) has made its way into real estate by automating certain processes for investors, landlords, and property managers. For instance, just like sensors installed on cars, sensors in smart home appliances can help you predict when maintenance or replacement is needed.
Although this specific technology hasn’t been released to the general market, it already exists, and it’s only a matter of time before property owners will rely on this for efficient maintenance.
While some technology is still in the works, there are forms of AI available now. If you’ve never looked into using artificial intelligence in your real estate business, this article will help you understand how it can be beneficial.
AI property management – the basics
In a nutshell, AI property management improves the efficiency of daily tasks and workflows through automation. The main benefit is spending less time managing the tedium of repetitive tasks, which gives you more time to grow your business.
Generally speaking, artificial intelligence uses machine learning to make predictions and/or automate tasks according to certain parameters. Perhaps the best example of this type of software is personalized ads. Based on the websites a user visits, machine learning algorithms display personalized ads to those users that are related to their previously expressed interests. As time goes on, the system can learn a great deal about a person and those personal recommendations can get exceptionally specific.
AI-powered property management software
Traditional software helps you do things like collect rent, manage leases, track maintenance requests, and document repairs. AI-powered software supports you and your entire team in managing these processes through workflow automation.
What is workflow automation?
A workflow is most efficient when there are little to no repetitive tasks that must be completed over and over again. Repetitive tasks are things that are more administrative than a direct benefit to the business. For example, adding each new tenant’s contact information to your database, moving lease agreements to the right folder, and adding tags to tenant files are all examples of tasks that have to be performed that are tedious and time-consuming.
Since these types of tasks don’t require unique human input, software can take care of them easily and automatically. This is the heart of workflow automation. Although rule-based logic can automate any basic workflow, AI takes it one step further by learning each system’s patterns and coming up with solutions to improve efficiency.
Here are some examples of how artificial intelligence can help you with property management tasks.
· Send automated reminders to your team members to contact tenants regarding lease renewals, follow-ups to repairs, maintenance schedule changes, and more.
· Update you with the current local market rent prices so you know when it’s time to raise or lower the rent. This will help you stay competitive in your area.
· Get additional market analytics gathered from a variety of continually-updated sources.
· Send reminder notices to tenants for upcoming or late rent payments. When your software sends out reminder notices, you don’t have to worry about tracking rent and reaching out to every single tenant individually.
· Automate tasks like approving work orders and lease administration.
· Automate your process for onboarding new residents. When each new resident is entered into the system, it can trigger events like sending out a welcome email or having a welcome gift delivered to their door.
These are just some of the ways artificial intelligence can support your real estate investment business. If anything can be automated, chances are, there’s a software application that will do the job.
AI is the future of property management work
Being a property manager is time-consuming when you’re doing all the work yourself. However, artificial intelligence looks promising for real estate investors who manage their own properties. Aside from hiring a property management company, using AI-powered software that uses machine learning is sure to be the best way for investors to automate workflows, keep their teams efficient, and maximize their profitability.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.