Having worked in top-tier investment banks in the city of London for seven years, Emile Salame founded Cornerstone Asset Advisors in 2014 and continues to lead this London-based independent real estate consultancy company. This article will look at property management and the potential of AI to streamline processes – and enhance efficiency and customer experiences – while simultaneously lowering costs.
No longer a futuristic concept, AI is transforming multiple industries, and real estate is no exception. Property management is constantly evolving, with AI playing an increasingly important role. AI poses game-changing potential, enhancing tenant screening, automating routine tasks and helping to build better landlord/tenant relationships.
Property managers are leveraging AI for a variety of purposes today, with key applications including pricing strategies, tenant screening, lease management and predictive maintenance. AI essentially uses machines to mimic human intelligence. In real estate, as in many other sectors, it is used to handle repetitive and data-intensive tasks, make predictions and solve complex problems.
AI paves the way for the collection and analysis of vast troves of data, enhancing the decision-making capabilities of property managers. By automating routine tasks, it frees up the time of property managers to concentrate on high-level aspects such as business strategy, improving overall operational efficiency.
In property marketing and sales, AI platforms are facilitating hyper-personalised property searches, with algorithms matching potential buyers with properties based on their preferences, financial standing and browsing behaviour. Augmented reality property staging, AI chatbots and virtual tours are creating immersive customer experiences, reducing the need for in-person visits and expediting sales.
Tenant screening is one aspect of property management where AI is proving to be particularly beneficial, thanks to its ability to review large amounts of data and assess each prospective tenant. Predictive analytics enables AI systems to analyse various aspects, including rental history and credit scores, helping landlords and property managers to review prospective tenants. With chatbots available to answer routine questions and queries 24/7, AI poses significant scope to improve landlord-tenant relationships. Chatbots are increasingly being relied upon to provide tenants with quick answers to questions and gather important feedback.
Another major benefit of AI is managing leases, with AI applications automating lease renewals and sending out reminders, helping to reduce the risk of human error. AI systems are also being utilised to deal with maintenance requests, sorting and prioritising tasks and ensuring they are completed on time.
AI systems are also being relied upon to detect fraudulent activities in property transactions by analysing patterns in buyer behaviour and financial documents. AI is increasingly being relied upon to flag potential fraud such as identity theft and money laundering, reducing the risk of financial losses for buyers and investors.
Historically, the real estate sector has been somewhat slow to adapt to new technologies. However, with an estimated value potential of up to $180 billion for the real estate industry, forward-looking property management firms are increasingly investing in AI applications to automate processes, lower overheads, and improve the experiences of both landlords and tenants. According to Deloitte’s 2024 Commercial Real Estate Outlook report, 72% of real estate investors and owners reported that their organisations were implementing or piloting AI. Introducing AI at every stage of the real estate life cycle enables stakeholders to develop more efficient, sustainable operations, which in turn facilitates smarter investment choices, enhanced asset values and improved outcomes.
AI has the potential to revolutionise the property sector in the coming years by enhancing decision-making, optimising property management and making transactions more efficient. AI systems are revolutionising property management and tenant selection by automating background checks, credit assessment and lease agreements. Experts predict that AI adoption will continue to accelerate across the industry, fundamentally changing how property professionals and consumers interact with properties.