Introduction
Artificial intelligence has been around for a while, and its capabilities have grown exponentially in recent years. In the near future it may be able to do everything from writing essays to diagnosing cancer. But what about AI within property management? Could this disrupt the UK Build-to-Rent industry? And what does that mean for landlords and tenants alike? With talk of over 60% of property management being dealt with by robotic systems in the next 5 years, we explore these new changes.
What is Artificial Intelligence
Artificial intelligence is a computational system that can exhibit both intelligent behavior and human-like capabilities. This type of AI has the ability to be categorized into three groups: low, medium, and high level artificial intelligence. Low level AI possesses limited knowledge in tasks such as self-driving cars which are only able to drive themselves without any other computing assistance from humans. Medium Level AI includes systems like chatbots or spam filters who have the capability for performing many different types of functions but on a more basic scale at once time instead focusing their attention on one task exclusively with all its power; while High Level Artificial Intelligence (HLAI) corresponds with an entity possessing near equal abilities when compared against human levels- these entities include virtual assistants like Siri or Alexa. High-level AI has not been mastered yet but will be considered an achievement when it has the ability to demonstrate cognitive functions such as creativity, adaptive learning, and emotional reasoning.
How will AI change the UK Build to Rent industry?
Our industry will be forever changed by AI
The UK Build to Rent industry could be drastically changed by cutting out the need for a property manager and leasing agent. AI will allow landlords to extract data from tenant applications in seconds, with just one PDF document!
Tenants will also benefit from AI when it comes to finding properties. The search engine will now be able to provide a list of properties which match their needs based on preferences such as space or monthly budget- and the user won’t have to scroll through long lists of unsuitable properties which don’t match their needs.
But what about the actual buildings? AI can make a huge difference to how these are constructed in the first place. Construction and design is often highly complex, with various parts needing to be planned out at once. This process is prone to error; plus it is very difficult to see where errors might occur until after construction has already begun. Using AI to monitor the design and construction process could mean that designs get modified if there are any flaws- saving time and money for both landlord and tenant.
With the use of AI in property management, landlords can also expect more accurate returns. AI will be able to make better decisions on how much rent a building should command- allowing landlords to maximise their profitability. This is also the case with tenant applications: using AI, landlords will be able to more accurately evaluate which applicants have a higher chance of being successful or the right fit for a development.
The benefits of AI in property management for landlords and tenants alike
As an emerging technology, artificial intelligence has the potential to completely disrupt the Build to Rent sector. In just 5 years, talks suggest that over 60% of property management can be dealt with by robotic systems. With this in mind and AI displaying as an increasing trend within property management across the globe, we explore what this means for landlords and tenants.
For landlords: The main advantage of AI being able to deal with many tasks is that it will free up more time for them to focus on running their business or maintain their property. This ultimately means less hassles, lower levels of stress, and more time for a better quality of life. For tenants: Tenants using these new robotic systems will receive greater transparency over charges made against their deposit and the smooth running of their tenancy.
It is certain that these new levels of artificial intelligence within property management will be both a benefit, and a challenge for the sector at hand. For now, it seems that this new technology has the potential to disrupt the sector in entirely positive ways for both landlords and tenants alike.
Disadvantages of using AI in property management
Some disadvantages to AI in property management are that the tenant can end up being controlled by the landlord and the tenant does not know their rights under legislation (Think GDPR). The tenant may also feel intimidated and reluctant to report problems because they are afraid that their deposit will be withheld or they will be kicked out of the rental property if they speak up.
The future of Artificial Intelligence in the UK Build to Rent industry is promising. AI can be a fantastic tool that will help optimize the process of renting property but also has the potential to be abused and used as a way to control renters who may not know their rights under legislation. However, provided landlords choose to not abuse it or use it for the wrong reason, it could be a very useful tool in the near future.
Conclusion
The benefits of AI in property management for landlords and tenants alike. As an emerging technology, artificial intelligence has the potential to completely disrupt the Build to Rent sector. With this in mind and AI displaying as an increasing trend within property management across the globe, we explore what this means for landlords and tenants.
For landlords: The main advantage of AI being able to deal with many tasks is that it will free up more time for them to focus on running their business or maintain their property. This ultimately means fewer mistakes, lower levels of stress, and more time for a better quality of life. Furthermore, there should no longer be any need for human interaction (i.e. talking to a manager or forwarding emails between different departments) therefore completely eliminating any possible mistakes and miscommunication which can often slow down the process of renting out property.
For tenants: Tenants using these new robotic systems will receive greater transparency over charges made against their deposit and the smooth running of their tenancy.
We at UKBtR understand that AI will have a major impact on our lives and could see people who don’t use it being left behind and struggling to keep up with the pace of technological advancement. For a list of companies currently excelling in this area contact info@ukbuildtorent.com
What are your thoughts on this market – let us know in the comments.
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