
The Rise of Machine Learning in Multifamily
In today's fast-paced world, multifamily owners and operators are eagerly exploring the potential benefits of machine learning to find efficiencies and improve decision-making processes. This technology allows for the analysis of large datasets to identify patterns and predict outcomes, revolutionizing several areas of multifamily operations.
Leasing: The Virtual Lease Assistant
One of the most exciting applications of machine learning in the multifamily sector is in leasing. Our journey with AI began early in 2020 when we started testing machine learning solutions for our leasing operations. After a successful pilot program, we deployed a virtual leasing assistant technology aimed at guiding prospective residents through the leasing journey seamlessly.
How It Works
This virtual assistant answers initial questions regarding lease rates and availability, helps schedule on-site tours, and directs individuals in choosing a move-in date. The key advantage is its 24/7 availability, providing support to both day and night prospects.
Efficiencies and Results
The adoption of this virtual leasing program has brought significant efficiency gains. More than 72% of all prospect resident leads in 2024 have been supported by the virtual assistant’s continuous availability, with over 80,000 of those leads being supported after business hours. By using this technology, we estimate that onsite teams were saved from fielding more than 96,000 hours of work—labor that the virtual assistant now supports.
Training Through Role-Playing
Beyond leasing operations, our commitment to training has also benefited greatly from AI integration. At the beginning of 2023, we introduced a role-playing tool into our training programs. This innovative approach uses virtual avatars controlled by live improv actors to help troubleshoot common workplace interactions such as performance feedback sessions, diversity and inclusion conversations, and conflict resolution.
Outcomes
All 600 of our managers have been trained on this program, with overall positive outcomes. The personalized simulation ensures that each interaction is optimized to turn ordinary moments into extraordinary experiences for both employees and residents.
Research and Data Analytics
Our market research team has been another beneficiary of proprietary big data and advanced algorithms. Using anonymized address data gathered during prospect resident screening, we can discern real-time migration trends in our markets.
Insights into Migration Trends
By analyzing such insights, we were able to reallocate marketing dollars toward migration hot spots. This smart reallocation has practical implications such as focusing future acquisitions within those nodes. Gleaning such insights has contributed significantly to outperformance for both existing and new assets.
Consolidation and Future Expansion
Presently, multifamily owners and operators who have adopted AI/machine learning tools for their platforms are now focusing on consolidating these applications to achieve a comprehensive solution. This consolidation frees up resources and facilitates change management, allowing for more streamlined operations and better decision-making.
The Personalized Experience: AI and Young Renters
Youthful renters who constitute the majority of our customer base are more likely to adopt a personalized experience with AI given their increased familiarity with technology. This integration not only enhances their comfort but also ensures that we deliver superior customer experiences tailored to their unique needs.
The AI Arms Race
The multifamily sector’s adoption of AI has just begun; there’s much more opportunity ahead. However, for software providers, the journey is just beginning—often referred to as the AI arms race. There’s still much to do to get viable solutions for our resident customers.
Where We See the Future
We believe that the evolution of AI offers real possibilities to help us deliver superior customer experiences for our residents in the years ahead. By maintaining a disciplined approach and continuously integrating new technologies, we can stay ahead in this exciting new era of multifamily operations.
FAQs
1. What is the significance of machine learning in multifamily operations?
Machine learning allows for the analysis of large datasets to identify patterns and predict outcomes, revolutionizing several areas of multifamily operations such as leasing and data tracking.
2. How has using the virtual leasing assistant improved efficiency?
The virtual leasing assistant has supported over 72% of prospect resident leads in 2024, saving onsite teams from handling more than 96,000 hours of work.
3. What role has advanced training programs played in AI integration?
Advanced training programs utilizing role-playing tools have greatly enhanced the skills of our managers, ensuring better workplace interactions and improved performance feedback.
4. How does data analysis contribute to smart reallocations?
Analyzing anonymized address data allows us to discern real-time migration trends, enabling us to reallocate marketing dollars toward migration hot spots for better asset performance.
5. What does the future of multifamily operations with AI hold?
The future holds immense potential for further integration of AI and machine learning. We anticipate seeing more personalized experiences for renters, continued improvements in efficiency, and enhanced decision-making capabilities.
Data Points
% of prospect leads supported by virtual assistant: 72%
Hours of work saved by virtual assistant: Over 96,000
Number of trained managers: 600
Frequency of support after business hours: Over 80,000 prospects
Reallocation impact on marketing dollars: Significant contribution to outperformance for both existing and new assets
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