5 Ways AI Tools Advance Multifamily
Innovation's accelerating. Here’s what property managers need to know.
From chatbots and fraud detection to content generation and lease-renewal prediction, artificial intelligence tools are popping up all across multifamily.
There’s good reason why. AI tech is helping managers streamline operations and free staff from repetitive administrative tasks, allowing them to focus on more important responsibilities. New tools, which often get significantly more efficient from one update to the next, can improve resident satisfaction and lead to higher retention rates.
“The resident experience stands to be completely transformed by AI,” said Paula Munger, former vice president of research for the National Apartment Association. “The staff focus will change from daily administrative tasks to talking to more residents and giving that personal touch.”
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Here are several ways that operators are harnessing AI and the operational efficiencies that come with that.
- Marketing and leasing
It all started with chatbots, which pop up on apartment websites to answer questions and guide prospects through the leasing process. These relatively simple tools free up time for specialized staff, plus they’re available 24/7, which can sometimes make or break a lease.
AI can also be incorporated into other marketing functions. For example, generative AI, such as ChatGPT or Perplexity, can be used to draft website copy, blog and social media posts and even create keywords for Google Ads campaigns.
Bristol Development Group uses ILoveLeasing, a CRM solution, shared Lisa Gunderson, vice president of asset management. The software utilizes AI to improve the user experience for both staff and prospective residents, engaging apartment seekers in AI-generated discussions about unit availability, pricing, scheduling, amenities and community regulations.
“The entire process, from interacting with the website to the time that it becomes a lead and is nurtured into a lease, is touched by AI,” she noted.
With 35 percent of Bristol’s website traffic occuring after normal business hours, these solutions allow the company to capture leads that otherwise would have been lost.
AI gives operators a level of speed and accuracy that’s impossible to match manually.
—Daniel Berlind, CEO, Snappt
- Customer relationship management
Property management software used by The Breeden Co. taps AI tech for customer relationship management, helping streamline and automate business processes, according to Rachel Blanchard, the company’s director of training and implementation.
“It’s been a complete game-changer,” she said. “It’s taken away all of our manual data entry for incoming leads, so every lead that comes in is automatically contacted by AI, prescreened and then entered onto guest cards.”
The ultimate goal, Blanchard added, is for the AI platform to schedule a property tour, at which point a human takes over.
The AI tool scheduled more than 13,000 tours across the Breeden portfolio over a 12-month period. Of those, 7,800 approved applications were secured, for a 60 percent closing ratio. The company’s closing ratio before AI was in the 40 to 50 percent range, “so we’re getting more bang for our buck,” Blanchard pointed out.
AI has also helped Breeden lease properties faster. At its Avant at Huntington Pointe community, a new, ground-up construction project in Newport News, Va., the property leased up in record time, stabilizing at 94 percent in nine months. Lease-up was three to five months faster than at other properties because of the increased activity generated by AI.
- Fraud prevention
Rental fraud is a growing problem for apartment owners and operators. A survey released in January 2024 by the National Multifamily Housing Council found that a staggering 93.3 percent of respondents had experienced fraud in the 12 months prior to the survey.
One example of applications in the space is Snappt, an AI-powered fraud detection and income-verification platform designed specifically for multifamily. It uses machine learning algorithms trained on more than 11 million documents to analyze rental application materials and detect patterns that might indicate fraud. The company claims to have a 99.8 percent accuracy rate.
“Fraud is no longer something you can manage with outdated processes,” said Daniel Berlind, Snappt’s CEO. “AI gives operators a level of speed and accuracy that’s impossible to match manually.”
Quantifiable Progress
A National Apartment Association Industry Pulse Report, based on summer 2024 data, revealed that most apartment companies started implementing AI in the past five years. The report noted several advantages of using AI:
10% to 20% improvement in conversion rates
15% increase in retention rates
Lead-to-move-in time decreased by seven days
Staff savings of up to 10 hours per week per employee
5% improvement in resident satisfaction
But despite these advantages, NAA reported that “AI is squarely in its infancy in rental housing,” with more than half of companies having no plans to fully adopt it.
- Resident insights
The better you understand your residents and their needs, the better you can serve them. And, of course, satisfied residents are more likely to renew.
Cortland uses Travtus, a multifamily AI platform, to read emails and phone transcripts from residents to gather insights about concerns and respond more proactively. The tool picks out common themes in the documentation and provides intelligence that’s different than what’s obtained through surveys or reviews.
“How do we serve our residents better if we don’t know what’s bothering them?” reasoned Mike Gomes, chief experience officer at Cortland. “This is a good way for us to get some deep-seated insights.”
CRG also uses AI solutions for leasing and resident retention. The company implemented Rentgrata, an AI-powered platform that helps boost lease conversions by facilitating conversations between prospects and actual residents. CRG has closed numerous leases using Rentgrata at its Chapter at the Streets community in St. Charles, Mo.
Our industry is known for not really adopting technology very quickly.
—Paula Munger, Vice President Of Research, NAA
- Using integrated solutions
Some tech companies are trying to get users to think more holistically.
“If you’re looking at an AI platform that does a single thing, like the leasing experience or the resident experience, you’ll be siloed in your ability to get maximum utility out of it,” said Richard Malpica, a vice president & general manager of sales at Yardi.
Last year, Yardi launched its Virtuoso app, which is powered by AI and handles routine tasks like chatbots, leads and tours, as well as business functions such as procurement, invoices and work orders.
However you use it, AI-driven tech can be a huge time saver and it can streamline a range of operations.
“Everyone is very excited about AI, but they’re also being very measured,” said NAA’s Munger. “The companies using it are already benefiting. If you’re dragging your heels, you’re missing the boat.”
