How Big Data and AI are Changing Residential Real Estate
First things first, what exactly is Big Data and AI?
Big data is a way to analyze and extract information from data sets that would normally be incredibly complex to comprehend or make sense of. Put simply, big data is an enormous set of various data points continually growing over time, that give us the insights to make better strategic business decisions.
Now, for Artificial intelligence (AI). AI is categorized as a branch of computer science focused on mimicking aspects of human intelligence such as logic, reasoning, and decision making. AI can be found in many people’s daily lives, whether you’re asking Siri a question, telling Alexa to set an alarm, or finding the next binge-worthy series on Netflix. (May we suggest The Queen’s Gambit?)
So how do these technologies interact with each other? AI pulls specific information from big data resources, allowing it to make automatic and informed decisions.
What’s Their Purpose in Residential Real Estate?
Firstly, it’s important to note that there’s been some hesitancy in applying these technologies to businesses. An overwhelming amount of people believe that big data and AI could take over their jobs, resulting in some kind of fully-robotic workforce – but that’s just not the case. These technologies are meant to be your companion, not your competition. Here’s why:
Decision Making Made Brilliantly Simple
The use of big data in residential real estate has allowed for investors, owner/operators, and management teams to identify various trends within the market and act accordingly. Gut-decisions like forecasting rent, selecting tenants, and determining vacancy rates have been replaced with metric-driven insights.
With real estate AI, management can gain valuable insights into potential prospects with technologies like prequalified leads and virtual frontline staff. Moreso, AI can help solidify investment of a property by predicting things such as economic value, long term value, property characteristics, and even environmental changes.
Increase in Productivity
Managing units, even buildings within an apartment community can be a tedious and often overwhelming task. With real estate AI and big data, property managers are now able to streamline tasks and cut hours out of their day. We now have the technology to virtually manage smart home automation, automatically control access to amenities, review insights into data consumption and network health, and much more – freeing up time for staff and allowing them to deal with more pressing issues.
Real estate management software utilizing big data and AI has allowed apartment communities to lessen risks, which inevitably can result in reducing overhead costs. With technologies like proactive issue detection and preventative maintenance, staff can now identify issues before they arise, with very few unknowns.
The Bottom Line
Big data and AI aren’t going anywhere, they’re here to stay. Utilizing these technologies allow for informed, calculated decisions in every aspect of residential real estate – from conception to continued management. Which leads to the next question, how will you make big data and AI work for you?