By Chris Saunders, Audit Director, Sherbert CPA, PC | csaunders@sherbertcpa.com
Technology, often called “Proptech”, is impacting every industry, including the real estate industry. At a real estate development conference I recently attended, one exhibitor featured a robot that simplifies compliance of ADA public right-of-way accessibility guideline requirements. The robot was equipped with precision lasers, highly accurate GPS technology, and specialized inclinometers. This technology provides precise data assessments to evaluate sidewalks, curb ramps, and other right of way elements.
Another example of technological advancement I recently encountered was when I looked out my office window and instead of seeing a human washing the windows, I witnessed a drone equipped with a soap dispenser and a hose effectively performing the cleaning task. A drone also recently washed the water tower and building exterior at Drayton Mills in Spartanburg, SC. Using drones for building maintenance in place of traditional cleaning methods could result in notable cost savings.
AI and automation are also significantly reshaping the industry by enhancing operational efficiency and improving tenant experiences. AI can forecast vacancy rates and shifts in market trends to help owners and operators address risks and identify opportunities. Proptech is streamlining AI-powered property management by automating routine tasks such as rent collections, lease renewals, and tenant communication. AI reduces manual errors, and AI can perform reviews for missing or improper responses in documents, such as lease agreements. AI algorithms can analyze credit scores, rental history, and income to predict tenant reliability, reducing risks of late payments and evictions. AI can identify inconsistencies in tenant applications, such as manipulated documents or financial records, ensuring more secure selection processes while maintaining compliance with applicable local, state, and federal regulations.
AI agentic solutions now perform actual problem solving, not just merely answering questions. AI leasing agent platforms can be custom-built specifically for the rental real estate industry. These platforms transform the communication and entire experiences of prospects, tenants, and operators. AI can serve as online 24/7 chatbots, can perform text, email, and effective phone conversations, and can schedule prospect tours. AI can perform maintenance coordination which can significantly cut ticket resolution times. AI can even handle routine maintenance requests, and flag more complex issues that may require external assistance to more timely resolve issues.
AI and automation can assist with post development activities such as preparation of marketing materials, preparation of social media posts, enhancing engagement with tenants and community, and smart leasing solutions including providing tours to prospective tenants. Soon it will not be uncommon to see robots in construction working side-by-side humans on real estate development sites. I cannot wait to see what else the future holds!
As a valued partner, you can trust that The Sherbert Group will keep you informed of important tech trends in real estate technology that can benefit the digital transformation in the real estate industry and help drive efficiencies and value.