AI transforms apartment rentals with automated leasing and management

Artificial intelligence (AI) is rapidly transforming the apartment rental industry, automating tasks traditionally handled by landlords and property managers. From work orders and lease renewals to virtual tours and investor due diligence, AI is streamlining operations across the board.

Rent Tech and Virtual Agents

One of the most advanced applications of AI in this space is the use of virtual agents to interact with prospective tenants. These AI systems, known as agentic AI, can act autonomously and make decisions based on consumer inquiries. While still in its early stages, this technology is gaining traction among a select group of companies.

AI is also proving invaluable for investors. For example, when purchasing a property, investors traditionally had to manually review leases to create a rent roll. Now, AI can analyze leases and generate summaries, significantly speeding up the underwriting process.

"AI is great for that, right?" said John Helm, founder and partner at RET Ventures, a fund specializing in AI for real estate.

Property Management and Efficiency

AI is also being used to streamline property management tasks. For instance, PredictAP, a portfolio company of RET Ventures, automates the processing of paper invoices from vendors like landscapers and plumbers. The AI reads the invoices and inputs the data into payables systems, eliminating the need for manual coding.

Centralization and Branding

Tyler Christiansen, CEO of Funnel, compares the multifamily industry to car dealerships, where interactions were previously siloed by property. Funnel's AI platform enables large apartment REITs like Camden Property Trust and Essex Property Trust to centralize their operations, creating a seamless experience for renters across their portfolios.

"Rather than the renter's relationship being with the community, the renter's relationship is really with the brand," Christiansen explained.

The AI system can also cross-sell tenants moving to new markets into other properties within the same portfolio, enhancing retention and revenue.

Challenges Ahead

Despite its potential, AI in the multifamily industry faces hurdles. The technology is still expensive, and many operators are in the experimental phase. Additionally, the market is highly fragmented, with the majority of rental units owned by small landlords.

"The challenge is going to be sifting through everything and understanding where there are real businesses that could grow into this," Helm noted.

For more insights, subscribe to CNBC's Property Play newsletter.