By freeing resources, improving responsiveness and creating new opportunities for engagement, AI has the potential to elevate the tenant experience in ways that go beyond operational efficiency, Michael Zaransky writes.
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AI has significantly reshaped the trajectory of the real estate sector, boasting applications with the potential to redefine long-standing norms and operations for businesses and tenants alike.
While the technology remains fairly enigmatic in a long-term sense, its early applications already offer a glimpse into how it may transform leasing, management and tenant services. These developments not only reflect broader technological progress — they also reveal how tailored solutions can address real estate’s unique challenges, in which personal interactions remain fundamental even amid automation.
AI applied to leasing and marketing
Among the areas where AI shows the most immediate promise is leasing and marketing, particularly in converting online interest into actionable engagement. When prospective tenants browse property listings or visit a company’s website, the next step – scheduling a property tour – can determine whether an inquiry turns into a lease.
Traditionally, this process relied on manual follow-ups, which could be inconsistent and time-consuming. AI’s ability to identify high-priority inquiries changes the dynamic entirely. AI systems can initiate timely and personalized outreach through text, email or voice communication, analyzing urgency along the way; this ensures prospects receive immediate attention, helping bridge time zone barriers and driving higher conversion rates.
Renters benefit from the efficiency of tailored responses, while businesses see improved results in their leasing processes.
AI for property management and operations
The potential extends beyond leasing, offering new possibilities for streamlining monthly property operations. Rent collection, a routine yet critical function, often demands consistent oversight to ensure payments arrive on time. The introduction of AI into this space offers a transformative shift. Instead of relying solely on property or assistant managers to identify late payments and contact tenants, AI can automate the process with precision.
These systems remove delays and maintain consistent communication with tenants by immediately detecting overdue accounts, sending reminders, and providing payment links. Such efficiency allows businesses to handle collections seamlessly, freeing staff to focus on broader operational needs and tenant engagement.
While these advancements reveal a clear path forward, they also highlight the complementary relationship between AI and human expertise. Automation, in this context, enables property managers to redirect their attention to tasks requiring a personal touch.
Whether fostering tenant relationships or addressing complex concerns, the human element remains essential. Far from diminishing the value of interpersonal connections, AI supports them by handling routine, repetitive tasks with greater speed and accuracy. This dynamic ensures businesses can enhance their operations while preserving tenants’ expected human-centric experience.
The future of AI and real estate investing
As AI continues to evolve, the possibilities for its role in real estate grow increasingly compelling. Maintenance requests represent one such area where AI could make significant strides. Future systems might analyze tenant-submitted issues, prioritizing emergency requests like plumbing failures while queuing less urgent concerns for later attention.
By automating this process, businesses could allocate resources more effectively, addressing critical needs faster and improving tenant satisfaction. The result is a more efficient and responsive property management approach that aligns with modern expectations for immediacy and reliability.
While the path forward offers promise, the industry must carefully navigate challenges. Trust will be central to AI’s successful integration — both for businesses relying on these systems and for tenants interacting with them. Ensuring transparency, addressing concerns, and balancing automation and human involvement will remain critical.
Companies must avoid an overreliance on AI that risks diluting the personal relationships that define exceptional property management. By thoughtfully combining innovation with human insight, the industry can embrace change while maintaining its core values.
Looking ahead, real estate-based AI represents more than a technological shift; it signals a deeper rethinking of how rental businesses and tenants interact. As this technology matures, its most significant impact may not lie solely in automating repetitive tasks but in enabling the industry to reimagine its priorities.
By freeing resources, improving responsiveness and creating new opportunities for engagement, AI has the potential to elevate the tenant experience in ways that go beyond operational efficiency. This evolving partnership between technology and humanity offers a glimpse into a future where innovation empowers businesses and those they serve.
Michael H. Zaransky is the founder and managing principal of MZ Capital Partners in Northbrook, Illinois. Founded in 2005, the company deals in multifamily properties.