Introduction

This might come as a surprise to most people but the first ever property management software that was launched was in the 1970s. It was conceptualised and executed by Anant Yardi. The hotel industry was plagued with inefficiency that halted its growth potential. 

In the 1980s there was a shift to a more digitised mechanism. Which started the evolution of property management software to what it is today. 

The Role of AI in Modernising Property Management

There needs to be more clarity as to what artificial intelligence can do in the property industry. Currently, within the realm of property management, it is perceived to be an “automation mechanism”, although it is true that is just one part of its multifaceted feature. AI has many capabilities ranging from data analytic abilities, risk management and fraud prevention, dynamic pricing strategy, and smart building technology.

1. 1.
   AI-Powered Features in Property Management Software

• 
  Automated Maintenance Requests and Management - gone are the days of manually tasking maintenance staff with tickets to resolve problems. The sector is evolving to accommodate a shift to streamline operational efficiency using property management softwares. Recognising the repetitive nature of work in the industry. Property management systems many companies perceive a better value proposition in implementing a PMS. 
   
• 
  Smart Lease Management- Tenant retention and engagement is a primary goal of a property manager. However, some tasks can be very repetitive and time-consuming. Contract renewal and receipt generation are some of these tasks that can be done very easily with the help of property management software.
  
  
• 
  Predictive Analytics for Property Maintenance - We live in a world that no longer makes decisions without data. Data-driven decision-making is an aspect of a property manager's life that is very daunting and strenuous. Prop tech companies realised this gap in the market, and are now providing robust software that can help managers make better data-driven decisions using metrics such as occupancy levels, number of complaints, number of tickets raised, etc.
  
  
• 
  AI-Enhanced Customer Service and Chatbots - Chatbots are notorious for being unreliable and not very user-friendly. But, with the rise in artificial intelligence and machine learning, we could see a shift in that perception. It builds on their case because they are trained with real data points. That could better the user experience. 

2. 2.
   Benefits of AI in Property Management
   

• 
  Improved Operational Efficiency - The essence of what property management software tries to solve is efficiency. With smart leasing, AI-enhanced customer service, predictive analytics, and automated maintenance requests. It enables the property manager to focus more on other important tasks.
  
  
• 
  Enhanced Tenant Experience - With the modern world moving towards a more digital-centric ecosystem. Property management software simply capitalize on this phenomenon by offering amenities like centralized messaging, announcements and updates, easy maintenance requests, quick response time, and payment gateways among many other features.
  
  
• 
  Cost Savings and Increased Revenue - As mentioned in this blog previously, property management software helps improve efficiency and increase revenue. 

3. Challenges and Considerations

• 
  Data Privacy and Security Concerns - Before you make up your mind you should know that there are some risks when you opt for an AI-integrated system. The main challenge is the potential data risk. If you possess any sensitive data, maybe choosing an AI-trained model shouldn't be a priority.
   
• 
  Integration with Existing Systems - Most property management software don‘t solve all the problems that their customers face. At times the customer may want an AI integration, in this case, you have to ensure that your software can cater to such an integration.
  
  
• 
  Training and Adoption Challenges- I'm sure you are aware that AI is far from perfect. If you are planning to implement it into your software and expect some miraculous turnaround in your operation, you are going to be fairly disappointed.  It takes a lot of time and training to experience some noticeable change in your business.
  
  

Conclusion

The impact of AI is vast and inevitable in almost every sector of our lives. Concerning the real estate industry, It’s going to be the deciding factor between what makes a good property management company vs what makes them great. Currently, we are at an early adoption rate where we could see a lot of innovation but as of now only time can tell us what could emerge. 

(Check out our blog titled Best Tenant Experience Management Softwares in Residential Buildings. )