How to Use AI in Property Management

Property managers often must deal with various tasks simultaneously – from rent collection to maintenance requests handling. Many of these tasks are repetitive, manual, and take up a lot of time. Fortunately, AI property management tools can automate most daily routine processes in managing properties, save time, optimize operations, and enhance the tenant experience.

The top 5 usages of property management AI include:

• AI property management chatbots for 24/7 customer support;
• Predictive AI for property maintenance predictions;
• Lease abstraction AI for summarizing contracts and getting key information fast;
• Sentiment analysis for collecting and understanding tenants’ feedback, revealing areas for improvement;
• Virtual assistance AI for automating rent collection, sending payment reminders, handling maintenance requests, and many other routine tasks.

In this article, we discuss the common AI applications in real estate, explore the possibilities of AI for property management in detail, and share tips and tricks on how to utilize AI tools for efficient property management effectively and easily.

Challenges of Traditional Property Management

• Repetitive and long administrative tasks. Without AI property management automation, managers spend considerable time handling paperwork, such as lease agreements, tenant communication, and maintenance requests.
• Misunderstandings in communication. Using only traditional communication like phone calls or emails may lead to delays and misunderstandings. Moreover, property managers may struggle to remember the required information and keep it organized, which is impossible with AI property management tools.
• Long and messy maintenance. With traditional reactive maintenance, the manager only addresses the issue after it has occurred, which takes a long time and many intermediaries. With predictive AI for property management, managers may address maintenance issues before they occur, meaning a lower chance of downtime and maintenance expenses.
• Limited data insights. Traditional methods of data collection and analysis make it difficult to gain actionable insights into tenant preferences, market trends, and property performance. AI applications in real estate can optimize not only data gathering process, but also its analysis, providing valuable advice on what could be improved.
• Low tenant retention. With many essential tasks performed manually, tenant customer experience and feedback are often neglected, which may lead to higher turnover, low retention rates, and increased vacancy periods. Property management AI may significantly help here by providing automated and personalized replies to tenants, making them feel their voice is heard. Moreover, AI sentiment tools that analyze the text style can provide ideas about what could be changed and improved.
• Difficulties in tracking payments. Manual rent collection can result in delays and difficulties in tracking payments, leading to cash flow disruptions. This can be eliminated by using AI for property management, with virtual assistants or chatbots analyzing and tracking payments.
• Inaccurate pricing. Without AI property management analytics, the rental prices information may be subjective or outdated, meaning missed opportunities and tenant dissatisfaction. Predictive AI can solve this challenge by automating the task and making pricing and valuation more objective and accurate.
• Manual and prejudiced screening processes. Traditional tenant screening methods lack efficiency and accuracy, increasing the risk of renting to unreliable people. Manual tenant screening may overlook crucial background information. Instead, AI tenant screening tools can provide more accurate, up-to-date and relevant information about who would live in the property.
• Burden of paperwork. Paper-based documentation, communication, and maintenance tracking can lead to inefficiencies and errors, meaning increased administrative burdens and operational costs. Having entrusted documents and paperwork to AI property management platforms, real estate professionals get more optimized and efficient property management.
• Competitive disadvantage. Property managers who rely solely on traditional or manual methods will soon struggle to compete with tech-savvy competitors who use AI to enhance operations. As AI applications in real estate become more common, staying aloof from progress may result in falling behind the curve and losing market share.

Real-Life Applications of AI Property Management Tools

Use Cases of Property Management AI

Predictive Maintenance AI for Property Management

One of the property management innovations is predicting necessary maintenance in the property. Traditionally, maintenance in property management is conducted reactively, so the repairments and improvements are initiated after failure or tenants’ request. Instead, property management AI predicts maintenance needs by analyzing data like historical maintenance records, property condition, and equipment, to anticipate maintenance needs.

By utilizing AI for property management, it is possible to proactively address issues before they escalate, thereby avoiding costly repairs and ensuring tenant satisfaction. Additionally, AI-driven monitoring of energy usage enables optimization of consumption patterns, ultimately leading to reduced operational costs.

Scheme Showing How Property Management AI Predicts Maintenance

Document Management

AI applications in real estate include platforms and tools for streamlining and automating document-related tasks. Property management AI facilitates efficient document management by automating processes such as document sorting, categorization, and retrieval.

Moreover, AI document management tools can improve the document style, making it less or more formal, check the grammar, validate security and compliance document policies, classify, categorize, and separate documents, and bring unstructured data (like documents in PDFs, emails, or scans) to the uniform structure which is convenient to search and save. All these make document handling much easier for property managers.

Contract Summary Property Management AI

AI property management can be also helpful for full-service property management, in which managers, among other things, are responsible for drafting and signing lease contracts with the tenants. AI-generated contract summaries extract key information from lengthy legal documents, providing property managers with concise summaries about crucial terms and conditions.

Moreover, an enhanced variant of contract summary AI can even free you from inserting criteria for summary. Such a tool works as a combination of AI chatbot and lease abstraction instrument, letting the property manager ask questions within the document itself and receive prompt, source-linked answers directly from the document repository.

This use of AI for property management streamlines the contract review process, saves time, and ensures that all parties understand their obligations, mitigating the risk of misunderstandings or disputes.

For example, Ascendix has created a lease abstraction tool, which could be used by property managers to get the summary of the lease contract and the key points of the document in seconds.

AI Lease Abstraction Tool by Ascendix

AI Tenant Screening

Automated AI tenant screening saves time and resources. Screening tools analyze applicant data, available in public sources and existing databases, and identify risks like past evictions or criminal records.

With AI tenant screening, property managers save time and resources while also improving the accuracy and consistency of screening decisions. Such utilization of AI property management reduces the likelihood of leasing to high-risk tenants, saves landlords’ money, and prevents property managers from troubles in the future.

For instance, RealPage AI screening tool analyzes credit scores, debt rates, and other public records, and provides the property manager with a score from 0 to 1000, indicating how risky (or not) it is to let the property to the specific tenant.

Example of AI Tenant Screening Tool | Source: RealPage

24/7 Customer Support and Virtual Assistance

The common and very convenient usage of AI for property management is a chatbot for automated communication with tenants, providing information, and managing requests. AI-driven customer support systems provide round-the-clock assistance, addressing inquiries and resolving issues in real time.

Property management AI chatbots analyze the query and either provide relevant info or create a ticket for the property manager, if the request is out of- the ordinary and cannot be resolved without a human touch. AI property management also can act as a virtual assistant to resolve typical problems like maintenance requests or inquiries about bills, streamlining tenant communication through automated reminders, updates, and notifications.

By leveraging this property management innovation technology, you can ensure that tenants receive prompt and consistent support, personalized experiences, and tailored services to their individual needs, leading to higher satisfaction and improved tenant retention.

Example of an AI Property Management Chatbot

Automating Operations with AI Property Management

AI property management tools can optimize operations by automating repetitive routine tasks performed by the manager daily. Some examples of them include:

• Rent collection;
• Payment reminders;
• Maintenance scheduling;
• Financial transactions tracking;
• Invoicing;
• Tracking lease expiration dates;
• Renewing the leases;
• Document drafting, sorting, signing, and other management;
• Detecting unusual activity in surveillance;
• Tracking and analyzing changes in rent amount for similar properties and in the market;
• Tracking consumption in property.

This list is not exhaustive, and the operations that can be automated highly depend on the specifics of your business and the tasks performed. However, what can be claimed confidently is that the capabilities of property management AI are extensive and multifaceted.

Improving Customer Experience with Sentiment Analysis

AI-driven sentiment analysis is one of the impressive AI applications in real estate, which utilizes NLP algorithms to understand the mood, or ‘temperature’ of the text. These tools analyze tenant messages, feedback, and online reviews to understand satisfaction levels and identify areas for improvement.

By understanding tenant sentiment with property management AI, it is possible to tailor services and amenities to understand problems faster, highlight strengths and benefits of the property, and meet tenant needs better, ultimately enhancing overall customer experience and increasing returns with improved reputation and retention.

Market Insights

Property management AI can analyze vast amounts of data to predict market trends for better strategic decision-making in various aspects, meaning efficient property management. By leveraging insights provided by AI for property management, it is possible to adjust rental prices based on demand and supply dynamics, property values, market trends in the area and in the country, optimize occupancy rates, and make informed choices about resource allocation, staff management, and investment strategies.

Rent Comparison and AI Property Valuation

AI for property managers can conduct accurate rent comparisons and property valuations by analyzing market data and property attributes. The AI property management tool for rent and property valuation can be developed tailored to the needs of the business, or it can utilize the existing database for maximum personalization.

Using this property management AI software, property managers can better understand the peculiarities of rental pricing and property investments and set prices that keep up with the market trends, maximizing profitability and asset value.

An example of such an AI property management tool is the AI valuation framework by Ascendix, which estimates the property value and identifies the best rent price, when integrated into property management software

AI Property Valuation Interface

Energy Efficiency and Optimization

AI property management systems for energy efficiency can analyze consumption patterns and optimize energy usage in properties. By identifying inefficiencies and implementing energy-saving measures, property managers can reduce utility costs, minimize environmental impact, and enhance overall sustainability efforts.

Limits of AI: What Tasks Should Not Be Automated

While AI for property management can perform miracles, it’s crucial to maintain the balance between technology and human interaction. Even with exciting possibilities, it’s essential to understand that AI is a mere tool rather than a complete substitute for human involvement, especially for efficient property management.

Personalized services, relationship-building, and fostering community connections remain integral aspects of landlord-tenant interactions, indispensable for nurturing strong relationships, retaining quality tenants, and ensuring a stable rental income. Let’s discover what else AI cannot accomplish perfectly.

Creating Business Policies

Creating business policies shouldn’t be fully reliant on AI because this aspect requires human insight, judgment, and decision-making. The policies must align with organizational goals and values. While property management AI can assist in automating processes, it cannot replace the critical thinking and strategic planning necessary for creating optimized policies tailored to unique business needs.

Complex Issues Resolution

Some property management issues may require nuanced decision-making and problem-solving skills that go beyond the capabilities of AI algorithms. While AI can suggest the best solution, based on common sense or general knowledge, sometimes issues in property management go beyond that. Situations involving legal disputes, delicate negotiations, or unique tenant needs will benefit from human intervention and expertise.

Training Your Employees

Using solely AI for training your personnel is not the best idea. Effective training requires human interaction, personalized guidance, and real-time feedback. While AI can provide automated tutorials, it cannot tailor training to individual learning styles or address specific challenges. Humans can adapt their approach, provide emotional support, and foster a collaborative learning environment, essential for developing required skills. Therefore, human involvement remains crucial for comprehensive and effective employee development.

Emergency Situations

During emergencies such as natural disasters or tenants’ personal emergencies, human intervention and immediate response are crucial. While AI for property management can assist in communication and coordination, human judgment and empathy are essential for assessing the situation and providing appropriate assistance, as well as emotional support and understanding.

Property Inspections and Checks

While AI can predict maintenance needs and schedule repairs, certain maintenance tasks may require human oversight and judgment. Inspections for safety, quality control, and compliance require on-site assessments and decision-making that property management AI may not be equipped to handle autonomously. Therefore, in these situations, human experience and knowledge are definitely needed.

Community Building

Fostering a sense of community among tenants involves organizing events, facilitating interactions, and cultivating a supportive environment. While AI can assist in communication and coordination, the human touch is crucial for creating genuine connections and promoting a cohesive community atmosphere. This is especially important for business models of co-living spaces and student accommodation complexes, where the sense of community is one of the main criteria for choosing a certain property.

Ascendix – A Seasoned Provider of Custom Property Management AI Tools

As AI becomes increasingly popular, more property managers seek to implement it for their solutions and operations optimization. Ascendix stands out as a seasoned provider of custom property management AI tools, offering tailored solutions to meet the unique needs of the real estate business. With our diverse experience in the industry, Ascendix has deep expertise in developing AI-powered tools that streamline property management processes, optimize efficiency, and enhance overall productivity.

What Can We Do for Your Property Management Business?

• Tailored Custom AI Property Management Solutions. Ascendix designs custom real estate software tailored to the specific needs of property managers looking to enhance their operational efficiency with the help of AI.
• Seamless AI Integration. With expertise in real estate AI development, Ascendix can seamlessly integrate and customize AI solutions into existing real estate software, ensuring enhanced user experience and efficiency without sacrificing preferred features.
• AI Lease Abstraction and Property Search Tools. Having developed our own frameworks for common real estate tasks, Ascendix specializes in integrating and developing AI lease abstraction and AI property search tools, providing real estate professionals with customized solutions perfectly aligned with their needs and objectives.

Why Choose Ascendix for Your AI Property Management Project?

• Trusted Partner of Major Real Estate Players. With our industry experience, extensive expertise, and proven reliability, we have earned the trust of leading real estate firms such as JLL, Colliers, and Hanna Commercial. Our tailored software solutions effectively optimize their business operations.
• Deep Industry Knowledge. With over 20 years of experience in real estate and a dedicated focus on proptech development for 16 years, we possess unparalleled industry insight and expertise.
• Specialized in Software Development and AI Integration. Our proficient team specializes in addressing the unique requirements of the real estate industry, combining expertise in software development and AI integration. This allows us to deliver cutting-edge AI-powered solutions tailored to the specific needs and preferences of real estate professionals.
• Global Presence. Headquartered in Texas, we maintain a widespread global footprint with five offices, facilitating smooth productive collaboration across continents for efficient project delivery and support.

Hire Ascendix and get rid of mundane tasks with custom AI property management software tailored to your needs. Contact us now and get ahead of your competitors in property management with the power of AI.