AI has taken the world and almost every industry by storm… and real estate is no exception.
AI leasing agents are some of the most notable and successful tools that have emerged from the AI revolution. These digital agents are changing the way properties are leased, offering efficiency, convenience, and enhanced customer experiences.
In this article, we'll explore everything you need to know about AI leasing agents.
What Are AI Leasing Agents?
AI leasing agents are virtual assistants designed to manage and streamline the leasing process of properties — both commercial and multifamily.
The AI agents can handle a wide range of tasks traditionally performed by human leasing agents such as: responding to inquiries, scheduling property tours and processing applications. The agents are often integrated into property management systems, websites, or messaging platforms, enabling them to interact with potential tenants in real-time.
Some examples of AI leasing agents are: Elise AI , LetHub and Betterbot.
How Do AI Leasing Agents Work?
AI leasing agents use a combination of natural language processing (NLP), machine learning, and automation. The NLP allows the agents to 'understand' and respond to tenant inquiries in a conversational and human-sounding manner. They can often ‘speak’ other languages and are programed to respond like an actual person - so much so that people have actually mistaken them for real people (read here).
Much like other machine learning technologies, AI leasing agents also learn from interactions that they have overtime, helping them improve their conversations and ability to solve lead or tenant problems.
AI leasing agents also automate a lot of activities such as scheduling tour dates in the calendar, assigning real estate agents, or, in some cases, screening potential tenants.
What are the benefits of AI Leasing Agents?
There are a number of benefits of AI leasing agents for property managers, landlords and tenants alike:
1. 24/7 Availability: Unlike most human agents, AI leasing agents are available all day everyday. This means that potential tenants can get answers to their questions and schedule viewings at any time, leading to increased leasing opportunities.
2. Efficiency: AI leasing agents can handle multiple inquiries simultaneously without delays, reducing the time it takes to process applications and fill vacancies. This efficiency can lead to higher occupancy rates and improved revenue for property owners.
3. Cost-Effectiveness: By automating routine tasks, AI leasing agents can reduce operational costs. Property managers can allocate resources more effectively and focus their time on tasks that require human expertise.
4. Data-Driven Insights: AI leasing agents collect data on such things as: lead feedback, operational metrics and leasing performance reports. This information can help property managers make informed decisions about pricing, marketing strategies, and property improvements.
Challenges of AI Leasing Agents
While AI leasing agents offer many advantages, there are some challenges:
1. Complexity of Human Interaction: Despite advances in AI, the agents may struggle with navigating complex or nuanced interactions that require empathy or human judgment. Some tenants may prefer dealing with a human agent, especially for high-stakes negotiations or sensitive issues. In some cases, the human-like nature of AI agents might be misleading for leads or tenants who believe they are speaking with a human, causing frustration or confusion.
2. Data Privacy and Security: The use of AI leasing agents involves handling sensitive tenant data. Ensuring that this data is stored and processed securely is crucial to maintaining tenant trust and complying with privacy regulations.
3. Dependence on Technology: Relying heavily on AI systems introduces a risk of downtime or technical issues that could disrupt operations. It’s important to have contingency plans in place to address these potential challenges.
The Future of AI Leasing Agents & Property Management
The future of AI leasing agents looks exciting! As machine learning technology continues to evolve and improve, we can expect to see some developments which make AI leasing agents even better to use in the coming years. Developments such as:
Enhanced AI Capabilities: As AI technology advances, leasing agents will become more adept at handling complex tasks and interactions, further reducing the need for human intervention.
Integration with Smart Buildings: AI leasing agents will likely be integrated with smart building technologies, enabling them to offer real-time information about property features, energy usage, and maintenance issues - information that tenants increasingly want to know more about.
Increased Adoption in Commercial Real Estate: While AI leasing agents are currently more common in residential real estate, we can expect their adoption to increase in commercial real estate as well, where they can help manage large portfolios and free up the time of the property manager.
The future of AI in property management is bright. Despite a few challenges to overcome, AI leasing agents will play an increasingly important role in shaping the future of real estate, making the leasing process more streamlined, accessible, and intelligent.
For many industries, AI is a nice to have, but with property management, and due to property managers having such a broad range of tasks to be completed at any given time, it’s increasingly becoming a need to have.
AI leasing agents are a great example of systems that are actively working to lighten the workload of people to allow for more focus on human facing tasks - something that both tenant and property manager will appreciate.
