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Technological advancements continue to redefine our lives, and the rental industry is no exception. On the consumer side, technology is changing how tenants choose and interact with their living spaces. On the business side, it’s changing how multifamily spaces are managed. From enhanced data protection measures to streamlined application processes, technology shapes how security meets convenience, and innovation paves the way for a more seamless experience for property managers and tenants.
AI and Paperwork
It’s rare that physical paper—applications and agreements—are shared between property managers and aspiring tenants anymore. Just about everything, from virtual tours to data management, is online now. Technology streamlines the rental process, improving efficiency for both property managers and tenants.
Online applications allow tenants to apply at their convenience. They enable property managers to review and approve applications quickly. A quicker leasing process means less vacancy time and less time spent on administrative tasks.
Technology also streamlines lease management. AI automates tasks like adding addendums, managing applicant information, and including necessary legal documents. This saves valuable time and resources and minimizes the risk of human error.
AI can also manage the financial aspects of a lease like rent payments and late fees. Many companies use AI-enabled lease management systems to track lease expiration dates and send automated reminders for lease renewals. This can help tenants stay on track and help property managers avoid extended vacancy periods.
Property and Application Security
Maintaining a secure application process is easier thanks to data-driven fraud detection. This technology is designed to catch imperceptible alterations on income documents like bank statements and pay stubs. It ensures documents are legitimate before managers approve a tenant for their property. By incorporating specialized technology into the process, leasing teams can save hours that would have been spent manually reviewing documents, which reduces human error and guarantees correct income verification.
Another way to keep fraud out of properties is via identity verification. These verification platforms use biometric scans to match an ID to a live person, confirming they are who they say they are. This is especially important in the rental industry, where fraudsters may try to use fake identities to gain access to properties, they would otherwise be unable to.
Ease of Renting Through Artificial Intelligence
By now, it's known that Artificial Intelligence (AI) is making a name for itself across industries. But how does it benefit the multifamily space?
AI makes remote property viewings a breeze. Applicants previously had to make their decisions based on a handful of photos or find time in their busy schedule to view the property in person. Now, immersive virtual AI tours provide a clear vision of what the home looks like and how they can use the space, without ever having to leave their couch.
Additionally, AI-powered chatbots have greatly improved the rental process by providing quick and efficient communication between potential renters and property managers. These bots can answer common questions, schedule tours and help with application submissions. This saves time for both parties and adds a level of convenience for applicants who are researching more than one property.
AI also crafts personalized tenant experiences. By analyzing renter preferences and behavior, AI algorithms can offer customized recommendations for apartment listings, amenities and community events. This enhances the rental experience and enables property managers to better cater to the needs and desires of their tenants.
Challenges and Considerations
While AI has plenty of benefits for property managers, some are concerned about the ethical implications and potential biases that may arise from using this technology. It's important for property managers to carefully consider the data being collected and how it is used with regard to fairness and transparency in the decision-making process. After all, adhering to Fair Housing laws is of the utmost importance.
In addition, implementing AI technology is a significant investment of time and resources. Property managers need to train their staff to use the technology and keep up with advances. It's also crucial to have proper security measures in place to protect sensitive renter data. Property managers should look out for companies that are SOC 2 compliant—meaning meeting the industry standard in security—when making decisions on what software to incorporate into their process. This ensures that these companies follow the American Institute of CPAs’ security framework and keep customer data secure.
Changes are sweeping through the rental landscape. The days of cumbersome manual applications and snail-mail rent payments are relics of the past. The multifamily industry is undergoing a profound transformation powered by technology that simplifies property management and redefines the tenant experience.
