Most people regard AI (short for artificial intelligence) as a recent invention, which might not be wrong, given that AI advancement peaked in the 2010s.
However, the genesis of AI goes back to the early 1950s, when young scientists toyed with the idea of creating a super AI chess player.
Since then, AI has grown in leaps and bounds—although we are yet to get to the point at which we can consider AI to be a “finished product.”
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How AI(artificial intelligence) Impacts the Rental Market
AI is a computer program that mimics human intelligence. It was created to collate data, identify patterns, and ultimately make logical decisions based on this data without the need for human intervention.
For years, the real estate market remained immune to changes occasioned by technological growth. This same unwillingness to adapt to change had been replicated in the rental market.
The industry has stuck to age-old traditions, while other sectors, like the finance and rideshare industries, continued to reap the benefits of adopting technology.
However, this space has seen unprecedented growth during the COVID-19 pandemic. This shift toward adopting new technology continues to create brand new possibilities for the rental space.
Below, we take a look at five ways in which AI is broadening the rental space:
In a world where data is a key resource, getting immediate feedback is crucial. Chatbots offer an extensive method to mine data efficiently and promptly.
By nature, humans are impatient. A breakdown in communication for even a single minute is all it takes to lose a potential client.
Refined chatbots that deliver human-like conversations are a great asset to real-estate investors and potential tenants alike.
Unlike humans, they offer 24-hour service at a fraction of the cost. For potential tenants, getting an accurate and specific response is a proven time-saver.
The same can be said for real-estate investors, as they can get timely data, which will enable them to make key decisions (e.g. adjusting rates according to demand).
Data may become hard to sift through as more people turn to the internet in search of suitable accommodation.
For example, many real estate tech companies that provide furnished rentals, say that it’s getting more difficult to pinpoint serious clients among the thousands of queries received on their website. This is where AI comes in.
For instance, agencies that target specific markets can employ Natural Language Processing (NLP) techniques to narrow down inquiries to select specific clients.
Additionally, AI can sift through responses more efficiently than humans. This creates room for apt decisions (e.g. the suitability of potential tenants).
Simplified Property Valuation
With the right algorithm, AI may prove to be a useful tool for property valuation. This is not only beneficial for investors but also for clients.
AI’s mojo lies in its predictive ability. When fed data (e.g. demand for housing, crime rate, social amenities, and overall infrastructure), AI can help generate valuation rates for properties—and even predict future rates! This information can help investors decide on suitable housing designs for specific locations.
Easier House Hunting
Traditional house-hunting practices can be a pain in the neck.
Potential tenants are expected to deal with demanding agents, make endless site visits, and sign hundreds of documents before they can settle in.
AI is making this process a walk in the park, refining search processes by narrowing down the options for prospective tenants.
By using machine learning, AI(artificial intelligence) can make suggestions for suitable apartments based on keywords and returning site visitors’ previous searches.
Streamlined Service Delivery
For new tenants, getting quality maintenance and repair service after moving in may prove to be an uphill task. This is largely due to ineffective communication channels, and a lack of time to address such issues.
By using voice assistants and the Internet of Things (IoT), AI can play a significant role in handling such tasks.
For instance, with the help of sensors, voice assistants can notify tenants and landlords of leaks in plumbing or gas pipes.
Additionally, it may be easier for a tenant to notify a voice assistant of urgent maintenance issues. Let it pass the message on to concerned parties, rather than attempting to contact the landlord or emergency personnel directly.
The application of AI in renting out properties is almost unlimited.
While most of these tasks have been handled by humans before, AI’s role has been to streamline them and ensure efficiency. AI(artificial intelligence)is creating a new crop of informed tenants and tactical investors via the dissemination of strategic information.
With a little effort, tenants can find suitable apartments and manage their spaces with ease, and real-estate investors can make more informed decisions, all thanks to AI.