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A major technological advancement has emerged in recent years, reshaping entire industries and forging new frontiers. The multifamily sector is no exception, as it undergoes a profound transformation, all thanks to the remarkable power of artificial intelligence (AI). 

Here, we’ll delve into the compelling reasons why investing in multifamily apartments infused with AI is a savvy choice for investors. 

Elevated Tenant Experience

In the age of AI, property managers are redefining tenant interactions. AI-driven chatbots and virtual assistants stand ready to provide instantaneous responses to tenant inquiries, schedule maintenance requests, and offer tailor-made recommendations. 

These intelligent systems don’t just save time and resources. AI cultivates tenant satisfaction through rapid, efficient service. In turn, this leads to better resident retention on properties and can reduce turnover. An example of this technology is shown on Ashcroft Capital’s Halston Shiloh Valley website.

What’s more, AI is revolutionizing tenant screening processes by sifting through vast troves of data to assess creditworthiness, employment history, and rental backgrounds. Property managers can now make informed, swift decisions with pinpoint precision. This also frees staff members to allocate more time toward resident needs, improving efficiency and resident satisfaction.

Streamlined Operational Efficiency

AI-powered systems are supercharging multifamily property operations. Predictive maintenance algorithms, fueled by historical data and sensor inputs, automatically predicts maintenance needs and emergency repair costs, thus extending equipment lifespans and reducing downtimes. Furthermore, energy management systems tap into real-time data like weather forecasts and occupancy patterns. With this information, it will adjust heating, cooling, and lighting settings to increase net operating income and reduce environmental impact.

At Ashcroft Capital, one of our latest initiatives is testing an AI collection program to ensure consistent follow-up and free up on-site teams for more critical tasks.

Smart Security Solutions

Safety in multifamily apartments reaches new heights with AI. Surveillance systems with facial recognition and anomaly detection capabilities boost resident and property safety by flagging suspicious activities and alerting security personnel in real time. Access control systems with AI-driven features like biometric identification and virtual keys enhance security while adding convenience by eliminating the need for physical keys or access cards.

Safety and security rank as top priorities for renters. Showcasing this type of technology to prospective renters can create a competitive edge for operators. 

Data-Driven Decision-Making

Thanks to AI software that synchronizes with property management tools, property managers can now make smarter decisions backed by a wealth of key data points.

AI algorithms analyze market trends, rental demand, and pricing data to optimize rental rates and maximize property revenue. Predictive analytics tools forecast occupancy rates, identify leasing patterns, and allow property managers to adapt their strategies as often as needed. This added efficiency can help drive net operating income for owners, operators, and investors. 

Additionally, AI-powered data analytics platforms provide valuable insights into tenant preferences, enabling personalized amenities, services, and marketing campaigns. This targeted approach elevates your game and connects you with the best tenants. 

The Bottom Line 

In 2023, AI is akin to the internet in the 1990s—a technology poised for unparalleled growth. In fact, the AI market is poised to grow to $1.3 trillion over the next 10 years from a market size of just $40 billion in 2022. 

Of course, any new technology is not without risk. There will be challenges to overcome, such as job displacement, dependence on AI, and a loss of human connection. How we resolve those challenges is still up in the air. Still, regardless, AI’s impact on the multifamily sector will only expand from here, becoming an indispensable tool for success in the fiercely competitive real estate market. 

Are You Looking to Invest in Multifamily Syndications? 

Ashcroft Capital is at the forefront of this technological revolution, harnessing cutting-edge AI for operational and analytical purposes. We are committed to continuously seeking out and adopting advanced technology for optimal performance. 

“As a company, we are leveraging cutting-edge AI technology for operational and analytical purposes and will continue to access and adopt advanced technology for optimal performance.” – Traci Wilhelm, Managing Director of Asset Management at Ashcroft Capital 

Don’t miss out on this opportunity to be part of the future of multifamily real estate investment.

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.