How Artificial Intelligence is Revolutionizing Multifamily Leasing

Spring is synonymous with renewal in the multifamily housing industry and property managers are gearing up for their busiest time of year – leasing season. Traditionally, this period has been characterized by long hours, repetitive tasks, and the constant pressure to fill vacancies quickly and efficiently.?

However, the landscape is rapidly changing. Artificial intelligence (AI) is emerging as a game-changer, streamlining processes, enhancing resident experiences, and empowering property managers to achieve peak leasing season performance. “It is only set to become significantly more important as the technology evolves and is adopted,” James Scott , director of the Real Estate Transformation Lab at the MIT Center for Real Estate told Multi-Housing News.

AI: A Streamlined Leasing Engine

The cornerstone of AI's impact lies in its ability to automate administrative burdens. When one multifamily company drilled down to a step-by-step review of an apartment turn, “... they cited some really meaningful reductions in time and cost in the make-ready process. If you shave days or costs off the process, it pretty quickly pays for itself in hiring the data analytics and process rigor,” John D'Angelo , real estate solutions leader & managing director at 德勤 , told Multi-Housing News.

Here's how AI tackles some of the most time-consuming aspects of leasing:

• 24/7 Lead Qualification and Nurturing: AI-powered chatbots can engage with prospective tenants around the clock, answering basic questions, scheduling tours, and pre-qualifying leads.?
• Smart Document Management: AI can automate tedious tasks like lease agreement generation and review.?
• Intelligent Lead Scoring and Prioritization: AI analyzes applicant data, rental history, and preferences to identify the most qualified leads. This allows property managers to prioritize promising prospects and allocate resources effectively. Cutting down on time spent approving fraudulent information is no easy task. Daniel Berlind , CEO of Snappt , told Realtor Magazine, “Five or 10 years ago, making a perfect-looking fake document required serious photo editing chops. But now, the average person can do it in a couple of minutes.”

AI: The Power of Personalization

Spring leasing season is a competitive battleground, not only to attract qualified residents, but also provide top-notch service in real time. Veena Jetti of Vive Funds states in Forbes, “I've noticed that property managers are less likely to miss a call with the aid of AI and don't have to worry about running client applications.” AI empowers property managers to personalize the leasing experience and keep up with demand in the market.

• Dynamic Property Marketing: AI algorithms analyze market trends, resident demographics, and competitor activity to tailor marketing campaigns. This ensures that property listings are targeted to the right audience with the most relevant messaging.
• AI-powered Recommendations: Imagine a system that can suggest the perfect apartment for each applicant based on their budget, lifestyle preferences, and pet ownership. AI can analyze vast amounts of data to provide personalized recommendations, significantly improving the application process for residents.
• Virtual Tours Reimagined: AI-powered virtual tours can be interactive and dynamic, allowing potential residents to explore amenities, customize furniture placement, and even experience the property in 3D. This immersive experience provides a deeper connection to the property and enhances the decision-making process.

By anticipating resident needs and offering a personalized experience, AI helps property managers build trust and establish positive first impressions, leading to a higher conversion rate.

AI: Beyond Efficiency, Towards Strategic Insights

AI's impact goes beyond mere automation. By analyzing vast amounts of data, AI can provide valuable insights to optimize leasing strategies. "In a transformative shift, AI is reshaping the multifamily sector of the real estate industry, revolutionizing acquisitions, dispositions, and operations. Despite being in its infancy stages with cautious implementation, AI emerges as a pivotal force, prioritizing efficiency, cost reduction, and enhanced tenant experiences," states the United States Artificial Intelligence Institute.

• Predictive Analytics: AI can predict future leasing trends, allowing property managers to adjust pricing strategies, optimize marketing campaigns, and anticipate vacancy rates. This proactive approach empowers informed decision-making and a more strategic approach to leasing.
• Resident Retention Insights: AI can analyze historical data to identify resident churn patterns and predict tenant behavior. This allows property managers to identify at-risk residents and implement targeted retention programs, fostering a sense of community and reducing vacancy rates.

By harnessing the power of data analysis, AI equips property managers with the tools to make informed decisions, optimize pricing strategies, and maximize profitability throughout the leasing season.

Implementing AI: A Strategic Approach

Integrating AI into your leasing strategy requires careful consideration. Here are some key steps:

• Identify Your Needs: Start by assessing your current leasing processes and identifying areas where automation can yield the most significant improvements. ElevateOS (formerly Elevated Living) can assist with a deep dive for one property or an entire portfolio

• Research AI Solutions: Explore the available AI-powered property management software solutions, such as ElevateOS (formerly Elevated Living) 's all-in-one platform. Evaluate features, pricing models, and integrations with your existing systems.
• Embrace a Learning Curve: Implementing AI requires a commitment to learning. Ensure your team receives adequate training to fully utilize the new technology and maximize its benefits. If the platform doesn't support seamless user experience, it will require more work than your team may be willing to take on during a busy season.

By taking a strategic approach, property managers can leverage AI to optimize leasing operations, streamline processes, and create a win-win situation for both residents and management.

The Future of AI in Multifamily Leasing?

Kim Young, VP at Fogelman Properties , predicts in Multifamily Executive, “By the end of 2024, we can expect to see generative AI playing a significant role in how business is conducted in the industry. However, it will also be critical for AI and human interaction to integrate responsibly, with human expertise guiding and regulating AI operations.” As AI is adopted by property teams, residents will see a change in high touch prioritization, with data collected from various channels.

• AI-powered Pricing Optimization: AI will utilize real-time market data and resident behavior analysis to recommend dynamic pricing strategies. This will allow property managers to maximize revenue while remaining competitive throughout the year, not just during peak leasing season.
• Enhanced Resident Services: AI-powered virtual assistants can offer residents 24/7 support for maintenance requests, amenity scheduling, and package delivery notifications. This streamlines resident communication and fosters a more convenient living experience.
• Smart Building Integration: AI can be integrated with smart home technology and building automation systems. Imagine AI anticipating resident needs by adjusting temperature settings based on occupancy or notifying maintenance of potential equipment issues before they escalate. This creates a more responsive and personalized living environment.

The Ethical Considerations of AI

As with any powerful technology, ethical considerations warrant attention.

• Fair Housing Compliance: AI algorithms must be carefully designed and monitored to ensure they comply with fair housing regulations and avoid discriminatory practices. Bias detection and mitigation should be a priority.
• Data Privacy: Property managers must be transparent about how they collect, store, and utilize resident data. Robust data security practices are essential to protect resident privacy and build trust.

By proactively addressing these concerns, property managers can leverage AI responsibly and ethically.

Spring Forward with Confidence

Spring leasing season no longer needs to be a period of frantic activity and long hours. AI empowers property managers to streamline processes, personalize the resident experience, and make data-driven decisions.?

While AI automates tasks and provides valuable insights, the human element remains crucial. Leasing agents will always be essential for building relationships with residents, providing personalized tours, and addressing specific concerns.

By embracing AI as a strategic partner, property managers can navigate the competitive landscape with confidence, achieve optimal occupancy rates, and foster a thriving community for their residents. As AI continues to evolve, we can expect even more exciting innovations that redefine the multifamily leasing experience for both residents and property managers.