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The AI Revolution Changing Multifamily Real Estate
How You Can Enhance Your Expertise With The Latest Technology
The multifamily real estate sector has seen dramatic shifts in recent years, with artificial intelligence becoming a key player in streamlining operations and optimizing executive decision-making. Among many industries, AI is transforming how real estate experts approach their work, offering new ways to enhance human understanding while improving efficiency.
However, while AI has powerful advantages, it’s crucial for real estate professionals to strike a balance between leveraging technology and maintaining that well-renowned ‘human touch’. After all, this is a relationship-driven industry.
So, how can investors make that happen? This month, your Everest team has some insights – led by our featured expert: Rose Schwartz.
Need a hand? AI has many.
The numbers are in: AI is already enhancing multifamily real estate operations. Let’s dive into some of the ways that AI, when used right, can be a powerful tool in a real estate investor’s arsenal:
Automating Maintenance and Smart Building Management
One of the most significant advantages of AI in multifamily properties is its ability to automate maintenance and optimize building management. Through predictive analytics, AI can identify potential maintenance issues before they even occur.
“By analyzing historical data, AI can predict when HVAC systems are most likely to break down,” Rose explains. “This allows property managers to perform proactive repairs – minimizing emergency situations and extending the lifespan of equipment. Residents are also more likely to stay satisfied when service is more timely and complete.”
Additionally, AI-driven ‘smart’ building management systems learn from usage patterns of the residents or users of the building to optimize energy consumption. These systems automatically adjust things like lighting, heating, and cooling to maximize efficiency without sacrificing comfort. This leads to substantial cost savings for property owners.
Streamlining the Leasing Process With Technology
It’s safe to say that AI has revolutionized the leasing process. From resident screening to lease renewals to tenant messaging, AI-powered tools are able to automate routine tasks, freeing up leasing agents to focus on more complex, human-centered responsibilities.
“Chatbots and virtual assistants are a good example of this kind of technology,” Rose says. “They can basically provide 24/7 support for prospective and current tenants by answering simple questions or taking messages and requests for staff. Building owners can even use this kind of system to convert leads by giving prospects information about availability, pricing, and scheduling tours.”
Overall, this improves the overall leasing experience by giving tenants more resources. Most importantly, it takes basic tasks out of the hands of building staff, so they can focus more on giving each resident, and situation, more individualized attention.
3 Best Advantages of AI
Beyond its operational benefits, AI has become a major strategic partner for real estate investors and property managers. You’ve seen a glimpse of that in the previous sections, but just in case you missed them, here’s a quick list – plus a few more:
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Predictive Analytics
This feature involves taking current and past data and using it to estimate what future data will look like. AI is able to do this in a much faster and more objective way than an independent worker, allowing you to focus more on what the numbers are actually telling you.
“AI can process such a vast amount of information in such a short amount of time,” Rose elaborates. “It can forecast vacancies, identify growth markets, and even suggest optimal pricing strategies. This kind of data-driven approach helps investors stay ahead of market fluctuations so they can keep their properties at high occupancy and profitability.”
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Individualized User Experience
With heavy competition growing fast in the multifamily market, making your own assets stand out from the crowd is crucial. One of the key ways that you can do this is by personalizing the experience of your residents. AI can help you analyze their preferences and behaviors in order to help you recommend units or amenities tailored to their needs.
“With a personalized experience from day one – things like white-glove services, amenities, and even features – property managers can greatly increase resident satisfaction and retention,” Rose says.
For example, if a resident consistently uses the complex’s gym and other communal spaces, your AI system can suggest units closer to these amenities upon renewal. It can also notify these tenants about relevant community events – altogether creating a more engaging and tailored living experience.
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Organization and Collaboration Tools
While you’re using AI to streamline interactions with your tenants, you might as well enhance your connection with your next greatest asset: your team.
“Project management tools, integrated with AI, can help property managers track tasks, manage workflows, and coordinate with team members and agents in real time,” Rose says. “This can save so much mental and physical energy that the manager could be using to grow their business.”
For investors and developers, AI-powered platforms provide up-to-the-minute data that helps them stay informed and make smarter decisions. Plus, by using cloud-based tools, real estate professionals can access that critical information from anywhere, ensuring seamless collaboration with their teams and external partners.
Keeping the Balance: AI and Humanity
While it’s true that AI can significantly enhance the multifamily real estate experience (otherwise, what have we even been talking about?) it’s important to remember that over-reliance on technology comes with risks. There are tasks that still require human intuition, judgment, and empathy – skills that technology cannot replicate.
“More than any other branch of real estate, the human touch is irreplaceable when it comes to nurturing relationships with residents,” Rose elaborates. “Residents often seek empathy and personalized attention when dealing with more sensitive topics such as disputes, financial difficulties, or service-related complaints. So, while it’s fine to let AI handle routine communications, it’s important to keep that trust with your tenants by addressing their biggest concerns face-to-face.”
AI’s reliance on data also raises concerns about privacy and security. It is essential to ensure that all data is handled securely and in compliance with governing laws and privacy regulations. Multifamily operators can do this by implementing a robust cybersecurity plan which includes protocols, protection software, and equipment that help protect sensitive information and foster further trust with residents.
You Can Embrace AI as a Real Estate Partner
AI offers multifamily real estate professionals unprecedented opportunities to enhance their expertise and streamline their work. From saving money on regular costs to optimizing energy use to expanding your resident experience, this innovative tech is reshaping how properties are managed and marketed.
Honestly, we think you’d make quite a good pair.
The key to your success is finding that ideal balance between automation and human oversight – ensuring that your technological tools complement (rather than replace) the essential skills of experienced property managers, investors, and real estate agents.
After all, we’ve built this world together. No one person could hold it up on their own – no matter how many robots they have.
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