Assetsoft - Blog #trends

Artificial Intelligence, Apartment Leasing, and The Top Trends

Thu, 24 Jun 2021 14:30:49 -0500

The property management industry has been slow to adapt to new technology. But with remote working being a necessity, the industry underwent some notable changes. Artificial intelligence changed the way the industry functioned. It has revolutionized property management by automating data analysis, apartment leasing and many other processes.

Impact of Artificial Intelligence on The Leasing Process

The real estate industry has utilized artificial intelligence in various stages of apartment leasing. It has eliminated one of the biggest challenges faced by both property managers and clients alike--communication.

On one hand, property managers can’t attend to all calls by prospects. On the other hand, an interested lead hasn’t heard back from the company. AI can reduce this gap and improve lead retention for property management companies. It can hold full-length human-like conversations. It is also capable of handling the entire process, whether it is tenant onboarding or exiting.

AI-assisted apartment leasing processes

AI can be used to automate almost everything. It is designed to replace humans by doing human-like interactions. Here are the 4 processes you can automate using AI:

Maintenance

Property management includes a lot of maintenance activities. Artificial intelligence can simplify it by detecting cues early on. It can also monitor maintenance requests and tenant responses.

Energy efficient

AI can analyze human presence and control lights and appliances accordingly. It can save energy by regulating unnecessary power consumption.

For example, by analyzing the surrounding temperature and detecting the number of people in a room, AI can adjust the air conditioner temperature accordingly.

Property management functions

You can handle several processes like filling forms and even tenant verification. AI automates all activities with minimal human interference.

Advertising and marketing

Artificial intelligence can analyze the interests and requirements of people before placing ads. In traditional marketing a single ad would be viewed by a large audience. AI-based advertising targets a more specific group, increasing engagement.

How AI benefits property management

AI is a fast-growing technology. As a property manager, you can reap several benefits such as:

Less human error

Artificial intelligence takes actions through previously programmed information. It can handle data and calculations better than humans. Even with the utmost care, humans can make mistakes. According to Steadfast, human error is the leading cause of data loss in businesses. By using artificial intelligence, you can keep your data and analysis more accurate.

24x7 availability

The most important benefit of AI is its availability. Ensuring 24x7 availability of staff requires more human resources and increases workload. If you use AI chatbots, it can instantly reply to any messages from prospects. This shows that your lead is important to you, and creates a better impression on them.

Efficiency

AI can handle multiple tasks at once. While humans are poor at multitasking, AI can simultaneously complete many tasks. This improves efficiency and productivity for your team.

Apartment leasing trends for 2021 and beyond:

Automated email and call answering

Leasing offices miss around 49% of calls. These unanswered calls lead you to miss out on several clients. Through automated email and call answering, AI bot handles every call even when an agent is not around. In the past years, these tools have improved a lot on mimicking human behavior. Through machine learning, they generate natural responses, so your client does not feel like they are talking to a bot.

AI can similarly answer lead emails. It can also send reminders to staff to follow up on a lead.

Chatbots

Chatbots are the quickest way to answer a lead when your staff isn’t around. According to Real Estate Trainer, 78% of buyers go with the agent who answers them first. AI-based chatbots can interact with the lead, answer queries and collect the necessary information. It can also forward any queries which need human interaction. These bots are getting smarter over time and give human-like responses to users.

Self-guided tours

Many property managers are utilizing AI to give self-guided tours to prospects. This has two goals: to reduce the workload of staff and to improve the touring experience. Prospects can sign up for these tours through the company website.

There are several ways you can automate the tours. You can utilize smart entry by sending a code in exchange for keys. The AI can assist the prospect through details of the apartment. It can also answer common questions and take note of other queries. According to NMHC’s OpTech Conference & Exposition, leasing increased by 86% when using a self-guided tour. Such tours help the prospects judge the apartment according to their own needs.

Social media advertising

Social media is ideal for real estate advertising. Facebook and Linkedin are popular platforms for real estate agents. Social media ads can address a wide audience. But with the right analysis, you can also use them to target specific groups. For example, Facebook has users of different interests whereas LinkedIn has a professional user base.

Apartment listings

Your client’s first exposure to the apartment is through a listing. AI can design attractive listings as well as manage several advertisements on listing services. It can add and update details so your advertisements are up-to-date.

Interactive content

Interactive content is the top trend for social media ads. You can choose from different content types such as polls, quizzes, and infographics. They cost more but have better ROI. Virtual tours are one of the most popular interactive content ideas for apartment leasing.

Predictive analysis

The industry is moving from intuition-based predictions to data-backed predictions. As big data is influencing real estate investments, property managers are relying on accurate predictive analysis. AI can use data from your ad campaigns, sales, and profits to predict ROI and future trends. It can give you insights into well-performing assets, good advertising strategies, and the right marketing channels.

For example, your marketing tool can track the lead origin and identify which advertisement did well. You can place more ads on the same platform to increase lead generation.

QR Codes

Though QR codes existed for a long time, they became popular during the pandemic. Property managers used these codes in several ways. Employees were given QR codes for identity verification. Prospects had to scan these codes to access the self-guided tour. QR codes provide endless possibilities during a time when contactless technology is a necessity.

Smart homes

AI is the backbone of smart homes. Intelligent buildings focus on easy maintenance, better security, and improved energy efficiency. AI can help in several ways. It can control lights and other electric appliances. It can also increase security by detecting unusual movements. As more people are trying to automate their homes, smart buildings are becoming a popular trend.

Tenant screening

Manual tenant screening requires you to hire different agencies for each check. AI bots can collect data, verify documents, and screen tenants more efficiently. Whether it is credit checks or criminal background verification, AI can do it all.

Use of cloud

Cloud-based software helps us work remotely. For real estate investments, data is invaluable. Over the years, property managers have chosen the cloud to store and backup their data.

Cloud storage gives several advantages. You don’t need to be close to a physical server to access data from it. During the pandemic, cloud storage made remote work possible. Even as the pandemic weakens, the popularity of cloud storage isn’t going away anytime soon.

Virtual and augmented reality

Virtual and augmented reality has brought revolutionary changes in the industry. Through these technologies, clients can view an apartment in the comfort of their homes. Many companies provide 360-degree virtual tours and 3D brochures. Others provide interactive floor plans and space assessments. All these are possible through VR and AR.

Progressive web apps

As technology advances, people prefer browsing through different devices. Whether it is an apartment listing or your business website, AI can help in optimizing the site for each device.

Future of apartment leasing through AI

Though AI is still entering the real estate business, it will grow fast. As technology improves, artificial intelligence can handle the complete leasing process.

With a major role in data analysis and forecasting, it will improve investments and give better ROI.

For property managers, it will organize data, improve marketing and maintain better customer relationships.

For tenants, it will provide the features of smart homes. You can turn off lights, secure houses, and much more with a single command.

A robust AI leasing software can help property managers reduce the number of staff. Soon, we can see artificial intelligence replacing all human activities in property management.

Implement artificial intelligence through Assetsoft

Artificial intelligence is the next big thing in the real estate industry. At Assetsoft, we help you start with AI automation. Whether it is forecasting or budgeting, we provide AI implementation for all your needs.

This is not our only scope of work. We can also provide technical advice, implement the latest technology and integrate various tools. Our platforms include Yardi, MRI, UiPath, and other state-of-art software. For all software, we provide implementation, data conversion, recovery, and training. We also check the health of pre-installed tools.

For all your software requirements, book an appointment with Assetsoft!

2021 Renters Report across U.S. and Canada: Top Developing Trends

Fri, 18 Jun 2021 11:35:36 -0500

Across the world, the rental property market is impacted by Covid-19. As the world recovers from the pandemic, the market is expected to reach $1765.5 billion in 2021. With the real estate trends changing, let’s explore how the market fares in different countries.

United States

Urban to Suburban Shift

The high-cost urban cities of the U.S. were affected the most by the Covid recession due to five factors

Remote working
Reduced use of public transport
Need of more living space
A desire for easy outdoor access

Closing of essential urban amenities

Along with these factors, the high cost of urban living was also a promoting factor for more people to shift from urban to suburbans. In 2021, the trend will continue causing a decrease in the rent prices in metropolitan cities and making suburban areas the key to rental market recovery.

More Demand For Single-Family Housing

As more people work from home, the need for multi-room spacious houses is increasing. Single-family homes have become much more sought after due to the privacy and space they provide. The John Burns report states that the Single-Family Rental market Index has reached 90 in the first quarter of 2021, an all-time record high.

Multifamily rents went down sharply in 2020 and are expected to follow the same trend this year. According to the FreddieMac 2021 Multifamily Outlook Report, multifamily property rents are predicted to decline by 0.2%, with large markets like New York and San Francisco performing much worse.

The Best Rental Markets

Boise, Idaho

Boise is seen as the best long-term real estate investment. Even during the pandemic, the city’s property prices have continued to rise. In 2021, Boise is predicted to see a sales growth of 9.8% and a price growth of 9.1%. Despite the growing prices, the demand for property in this city remains high.

Dallas, Texas

Dallas is a city with growing job vacancies, which means the demand for rental properties will also be high. With a projected population growth of 17.9%, this is one of the best real estate markets for 2021. However, investors will see good competition as the inventory is limited and the demand is high.

Tampa Bay, Florida

Tampa Bay is one of the most extensive metro cities in Florida and suitable for retirees. The purchase price for investors is about 32% below the national average. A fast-growing city, it provides exciting opportunities for real estate investment in 2021. The expected sales growth of Tampa Bay is 8.7%, and the price growth is 7.5%.

Jacksonville, Florida

With growing job opportunities, Jacksonville makes it to the list of the best rental markets in the U.S. The average rent in this city grew up to 8% as compared to last year. Jacksonville has diverse industrial opportunities in the fields of finance, healthcare, and technology. The city is expected to see a sales growth of 9.4% and a price growth of 5% in 2021.

Canada

Canada has also seen a drop in rental prices due to the pandemic, especially in major cities like Toronto. But this is expected to be short-term, and the market may recover as the pandemic wanes.

Detached homes will be a priority

Last year, many workers moved from urban to suburban areas due to remote working possibilities. As people prefer working from home, even as the pandemic subsides, suburban regions will still see a massive demand for rental property.

In 2020, the prices of one-story single-family homes rose by 15.9%. Detached homes are more suitable for remote working as they are more spacious and readily available in low-cost areas.

The Best Rental Markets

Hamilton, Ontario

Hamilton is home to several industries like food, hospitality, and healthcare. Over the last few years, the city has seen an increase in job opportunities and a steady increase in population. The prices are also lower as compared to other major cities like Toronto. This is one of the best cities to invest in single family homes, as their price has increased by 31% compared to the previous year. If you are looking to invest in Hamilton’s real estate, keep in mind that the inventory is extremely limited, with homes being sold within 14 days of listing.

Vancouver, British Columbia

Vancouver’s housing market is stabilizing, with transaction volumes returning to normal. The city is not just beautiful but also attracts a lot of people. With a projected population of 3.8 million by 2050, it becomes one of the best rental markets in Canada. Prices have increased for all types of homes in Vancouver, with the cost of detached houses increasing by 24% compared to last year. The city also has excellent amenities and a good transport network.

Windsor, Ontario

Windsor is an affordable real estate market whose prices are soon expected to rise. With a prediction of a 15 to 20% rise in the average residential sales price in 2021, it is a hot market for investors. Markets like Windsor that have low costs are only the beginning of a real estate boom. People investing in this city can expect high returns once the country settles from Covid-19.

Australia

Australia is experiencing a boom in property demand at the end of buying season. Several factors are driving people to invest in real estate. As the popularity of Australia rises, housing prices continue to soar, making it one of the least affordable countries in the world.

One of the driving factors for increasing home rates is Australia’s excellent handling of the Covid crisis. Some places have recently reported zero new cases of Covid-19.

Similar to other countries, the housing trends are indicating a shift to less populated areas. More people are willing to invest in single family homes, as they are more spacious and better for remote working.

But as inventory is tight, home prices continue to rise. This is the best time for investors looking to invest in the Australian rental property market. The Covid-induced buying boom is not expected to slow down anytime soon. Even as more homes are listed for sale, they cannot keep up with the vast demand. This ensures excellent returns in the coming years.

The average sales volume in Australia is 116% higher than last year. Out of the many factors, the fear of missing out is driving people to invest in property.

United Kingdom

After the pandemic, people of the U.K. have shown an interest in investing in real estate. Whether it is renting or buying, the trends look promising for the country.

Housing Boom

Unlike the previous year, the U.K. is witnessing a housing frenzy. Wealthy people are investing to buy homes as they are not as affected by the economic effects of the pandemic.

Similar to other countries, people are looking to move outside London into other less populated areas. As housing prices continue to rise, home buyers are seeking affordable housing outside urban areas.

The private rental price growth in the U.K. has reached 1.3% as compared to last year. Real estate investors can invest in suburban single-family homes as more people are looking to move. As the British pound gets weaker, many overseas real estate investors are looking at this as an opportunity to enter the British property market.

Northern England Attracting Residents

Liverpool, Edinburgh, and other affordable housing markets are attracting new residents. As a result, the rental prices are rising, with the average home price in Edinburgh rising by 12.3% over the last five years. The region also promises high yields, making it a good area for real estate investment.

Takeaway

The rental market is recovering from the impact of the pandemic. As seen in the above reports,

Most countries are witnessing a housing boom, with more people willing to buy or move homes.
Urban housing prices are dipping but may recover soon.
People prefer suburban areas as houses are spacious and affordable.
Single family homes are seeing increasing demand as they are feasible for remote working.

How to make the right investment?

If you want to invest in real estate, your focus should be on collecting and analyzing valuable data to make meaningful investments. This can be made more accessible by getting the right data analysis software through Assetsoft. Using platforms like Yardi, MRI, and Procore, experts at Assetsoft can construct the right tools to suit your requirements.