Artificial intelligence, or AI, features in the news increasingly frequently as its capabilities encompass more industries and applications. AI has already impacted the real estate industry for some time, but its influence will continue to expand as investors find new ways to harness its potential. As this technology revolutionizes the way investors buy, sell, and rent property, here are five ways AI could impact your rental business:
1. Maximizing efficiency through automation. No one wants to pay extra utility costs due to lights or a TV that a tenant failed to turn off on his way out. AI automation can simplify numerous processes, including turning electronics on and off and modulating indoor temperatures based on sleep and weather patterns.
2. Streamlining maintenance tasks. AI can streamline many of a landlord’s day-to-day tasks. Rent collection, tenant screening, and scheduling routine maintenance can all happen automatically. AI can provide real-time repair alerts and analyze tenants’ habits to create recommendations for mitigating property wear and tear.
3. Improving virtual tours. Potential tenants must fully understand the property before committing, but traveling to each prospective unit proves costly and time-consuming. AI produces highly accurate 3D models that make virtual tours more realistic and immersive, reducing the need for in-person visits.
4. Facilitating customer service. Landlords can use an AI-powered chatbot or virtual assistant as a frontline resource to answer frequently asked questions and other basic inquiries. Tenants benefit from 24/7 availability, and property managers free up time to work on more complex tasks.
5. Informing investment decisions. AI can access and analyze staggering amounts of data. Leveraging this capability will keep landlords better informed on rent prices, market trends, property valuations, and future appreciation. It will also put them a step ahead in finding profitable investment opportunities and avoiding costly mistakes.
Before diving into the world of AI, it’s essential to understand its uses and limitations in the rental business world. Assess the strengths and weaknesses of your current systems to pinpoint where AI technology could help. Budget for an initial investment, of course, but also the costs of ongoing upgrades, maintenance, and training. And remember that AI comes with potential risks, such as faulty data interpretation, incorrect performance, and privacy concerns. You must also train tenants regarding any AI use that will impact them and employ proper safeguards and overrides to ensure maximum efficiency.
As the potential for automation increases, remember that technology can never fully replace human interaction. But with the proper precautions and balances, investing in AI can save you time and money while improving your tenants’ overall experience.
About Rentals America
Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management, and we’re here to help landlords navigate the rental market.
