The introduction of artificial intelligence to the multifamily industry has been a measured process. Yes, many are using AI in the form of chatbots and for advanced automation. But to a large degree, AI is viewed by the industry for its future capabilities rather than anything that can make an immediate impact.
The apartment sector can make headway on that front by envisioning how AI can augment existing platforms, and then pairing them.
For instance, pricing tools are becoming more intuitive and now enable lightning-quick insights into the market that allow operators to intelligently adjust their pricing tiers on a weekly—and sometimes daily—basis. Now, imagine pairing that with the natural language and automation capabilities of AI to create the ultimate prospect experience.
In essence, you’d be pairing advanced pricing capabilities with the idea of a virtual leasing agent. Renting an apartment would be similar to ordering takeout online, when the addition of side dishes and desserts add on to the price while switching the entrée can make the total go up or down.
As the prospect chooses their desired finishes and amenities, they can watch their monthly rent go up and down based on their selections. If they have a certain threshold for their monthly rent, they can peruse the multiple options and decide which combination of home size, location and features best adheres to their budget. If the community website is equipped with chatbots, they can further lean on the AI component to ask questions and receive detailed, real-time answers.
On the operator side, intuitive pricing platforms utilize machine learning to help drive optimum pricing. Operators can track the types of leases that are eventually signed within certain pricing tiers and use that information to further finetune pricing moving forward.
These insights, combined with an analysis of competitor data, also help create optimal pricing for homes and uncover any pricing gaps in the market. Operators can use the pricing data and compare it against any concessions or specials within their particular markets and incorporate those findings into the overall pricing analysis.
Pricing can be one of those maddening concepts in the industry, but it doesn’t have to be. An increasing number of operators have discovered that relying on hunches rather than S-Curve models and advanced data solutions can be severely limiting. Many are taking advantage of intuitive pricing platforms in an effort to strengthen their revenue management ambitions.
Paired with AI, the capabilities of those platforms are continuing to evolve. They have the potential to create the most cutting-edge prospect experience while simultaneously providing operators with performance never before witnessed in the industry.