If you have ever asked Siri or Alexa to find your favorite piece of music, you are using artificial technology (AI). AI can be found everywhere these days, and it has started to transform every industry, including real estate.
In the past, the real estate industry was one of the last to adapt new technologies. But a recent study by Appfolio and John Burns Real Estate Consulting shows this trend is changing. Actually, 78% of property managers may consider their organization open to artificial intelligence. (Appfolio.com)
While the worry of machines replacing humans is a concern, the truth is that artificial intelligence just creates more time for humans to do the things they are best at.
AI is based on the idea that if a computer can be programmed to think like a human being, they can learn to perform tasks to increase our efficiency. They then can theoretically continue to learn over time to become more efficient. AI can reduce the amount of busywork we do and allow humans to use their expertise on work that requires more strategy and brainpower.
How can AI change the real estate industry? Here are nine ways.
AI Improves the Customer Experience
AI is an effective tool that can be used to unlock the potential of your business. It can boost team members’ capabilities and free their time to offer a better level of customer service. Renters place a high value on easy and fast communication, and conversational artificial intelligence technology can offer it. This gives your staff more time to provide exemplary customer service. By getting rid of the manual and repetitive tasks, AI gives more freedom for your property management and sales teams to focus on strategic tasks and forget deeper connections with customers.
Artificial intelligence technology can pull information from conversations, put that data into your property management software, and do tasks based on the information that has been acquired. This not only saves you time, but it also puts standard processes in place and eliminates the risk of human error. This better ensures an outstanding experience for customers, and data will be more accurate.
AI Streamlines Leasing, Enhances Conversion Rates
Quick, complete responses give you the edge when you are converting a lead to a lease. Zillow’s 2018 Consumer Housing Trends Report found that 71% of renters who asked about a listing expect to hear from the landlord or property manager in a day. But only 51% of renters said they received a response that quickly.
By using advanced conversational artificial intelligence technology that automates communication for leasing, you can get timely and accurate responses to every renter. The technology is intended to allow better operational efficiency during the leasing process to boost lead conversion, which reducing the load on leasing teams.
Conversational artificial intelligence technology can really impress renters by making it easier to book their walkthrough in less time from their cellphone, and by giving fast, complete answers to common questions. When they arrive at the place in person, leasing agents can focus on giving them warm, personal service.
Reducing Language Barriers
Global industries have thousands of documents in different languages. These documents in real estate have legally binding information, and when it involves a lease term, the industry must depend on local resources. When a real estate transaction is finalized, only the native speaker of the language can understand the contract terms. Not anymore.
New artificial intelligence technology can be trained to understand or speak any language. Through this innovative feature, AI can pull valuable information from global contracts and convert it to any language. The application of AI in real estate would allow agents to understand vital content without any language barriers. (Mashvisor.com)
Allow Virtual Access
Advancements in artificial intelligence are allowing for virtual tours of properties which can save a lot of time. Some virtual tours can even be accomplished today through the use of drones.
On the other hand, surveying land for construction is another plus with AI. With the use of drones, construction companies and buyers can look at land before they finalize their deals. This type of automation reduces the number of complexities and complications associated with real estate transactions.
Allows for Perfect Data and Actionable Insights
The decisions you make in real estate are only as good as the data you have. That goes for big and small decisions. You must have trust in the information that you are basing your business decisions on. By taking the human out of the data input part of the job, artificial intelligence lowers the chances of human error that comes with working too quickly with large amounts of data.
Advancements in AI technology in real estate are making it easier to collect information from all prospective renters. You can access real-time data and analytics on your rental portfolio. You also can accurately track leasing performance, the number of showings you have and conversion rates. Also, you will be able to make better-informed decisions with analytics and lead attribution.
Predicting Loan Defaults
Today’s real estate crowdfunding platforms can use AI to predict loan defaults, which boost investor profits. By making predictions on defaults, the process for risk assessment is more efficient. Platforms can focus on the most profitable investments while lowering the ones that are less profitable. (Becominghuman.ai)
Real estate investors can establish their investment criteria and be alerted when a deal meets their parameters. For example, if an investor is interested in a first lien position on a commercial property with a 10% ROI, they can choose those parameters on their dashboard and obtain a property list that matches what they want, while also not including properties that do not meet their standards.
Property developers and builders want to lower expenses and increase returns, just as all investors do. A new type of AI tools called proptech are being designed to help builders automate the purchase of materials so they can get the best materials from the best suppliers at the best price. By allowing the bots to handle the acquisition of materials, construction firms can reduce their expenses and boost profits with AI.
AI can be used in your property management to predict and monitor when vital maintenance systems need to be replaced. The technology also is helpful in keeping up with rental trends in certain geographic areas, and raise rents on tenants when the lease is up. Other details of property management, such as expansion analysis and building automation can be done by property management firms to determine possible returns based on inputs that affect rents, expenses, and profits in rental properties.
AI and machine learning are being used more often today in every area of real estate. But its expanding use in real estate investing allows investors, builders, and property managers to access more effective ways to increase returns, control costs, and manage risk with automated systems that are based on the concerns of individual investors.
Does the greater us of AI spell trouble for real estate professionals and their employment? It should not lead to problems right away, but it will definitely lead to some changes. For the most part, AI will help real estate professionals and investors save money and time in terms of serving the client and adding operational efficiency.