The Future of Property Management: AI and Automation

Professionals operating in property management probably don’t need to be told that AI and automation can greatly help improve typical operational processes and day-to-day administrative tasks. 

Managing bookings, guest reviews, transactions, and even check-ins are almost fully automated now, enabling property managers, SMEs, and real estate professionals to focus on growing their businesses and generating good prospects. 

So, what does the future hold for AI in property management? Overall, professionals can look forward to seeing even greater improvements, the specifics of which are discussed below. 

How AI and Automation is being used within Property Management

In the current real estate and property management space, AI and automation work hand-in-hand to improve the efficiency of administrative processes. This means that professionals in this industry don’t have to manage bookings, payments, or check-ins manually, which helps mitigate risks of instances like double bookings and other inefficiencies. 

For example, using AI for customer service has reduced the amount of time property managers and hosts need to spend providing active support to their guests. Although some queries simply require human input, many questions or concerns guests have can be addressed through formulated, generated responses. Professionals can significantly reduce the amount of time spent dealing with queries. This is also favourable to guests as it often means their requests and queries are immediately handled. 

Another example of automation and the use of AI in property management is predictive maintenance. This type of technology helps managers ensure their properties are regularly maintained to retain their structural and functional integrity. AI and automation can help alleviate the work linked with hands-on maintenance reviews and checks, from scheduling maintenance to flagging what needs tending to. 

Benefits of Automation and AI in Property Management

As demonstrated in the above examples, implementing automation and AI in property management has several benefits. 
 

• Cost and Time Saving: AI and automation can help reduce costs by reducing risks linked to human errors. By saving time, property managers and real estate professionals can also greatly save on resources, ensuring that budgets can be more effectively allocated. 
   
• Improved Guest Experience: AI uses guest data to tend to queries, allowing managers to ensure guests get the experience they’re paying for. In this respect, automation and AI go hand-in-hand. Guests can fill in their details or any special requests, and AI integrations can gather these together so property managers or hosts can ensure these are seen to. This reduces the number of conversations needed with guests while still ensuring they get the best possible experience. 
   
• Faster Decision Making: The key to running a successful business in any industry is data. The more information you have, the easier it is to make decisions that can shape your business’ development and path forward. By obtaining data automatically and having AI interpret it and present it in more concise formats, professionals can make more informed, faster decisions surrounding aspects like expansion steps, rates, budgets and marketing campaigns, to name a few. 
   
• Admin Efficiency: Some of the most significant errors can be made during simple administrative tasks. Automated admin tasks like bookings, payments, and check-ins reduce the risk of human error, and professionals can focus more on guest satisfaction, occupancy rates, and other aspects that will ultimately grow the business.

The Challenges of Automation and AI in Property Management

It’s common for professionals operating in the hospitality and short-term rental industry to think that integrating AI and automation may give the impression of being impersonal. However, this entirely depends on how reliant you decide to be on these tech integrations. As with any new tool, some challenges may present themselves. 

• Initial costs: Technological tools and software designed to assist with property management can have a high initial cost. When exploring possible AI and automation solutions, one should consider the possible long-term cost savings and time-saving aspects.
• Privacy: In real estate and property, it’s paramount that guests and tenants understand that their information is kept private. The property manager must ensure that any automation and AI tools comply with local privacy laws. This means that they need to be able to guarantee that certain information will be kept completely confidential.
• Technology Complexity: One key challenge surrounding tech and AI integration is the usability of applications. Implementing new tools can be challenging, especially if your team is used to older, seemingly more simplistic processes. Your supplier should always offer training and support and understand the nature of your business before offering possible solutions.

Emerging Trends in Automation and AI in Property Management

Some of the new up-and-coming trends in AI and property management address facets of the industry beyond guest and tenant management. These trends are diving more into actual building and property management, addressing important aspects like maintenance, energy efficiency, and security monitoring. 

Possibly, one of the most impressive emerging trends is the integration of virtual reality (VR). Aimed mainly at enhancing the guest experience, VR can provide a platform for guests and prospective tenants to view a space remotely. This can help guests define the type of experience they want to have before physically seeing the property. 

Additionally, using VR in property development can help enhance investment pitches and sales efforts for spaces still in the design or construction phases. 

Summary

Although technology is developing at a pace that’s seemingly impossible to keep up with, the fact remains that it can help improve the ways in which property managers and real estate professionals conduct business. Any new development comes with challenges and hurdles, but with careful analysis and consideration, these can be easily overcome.