Enhancing the Renter Experience Through AI & Centralization
The multifamily housing industry is undergoing a significant transformation, driven by changing renter demographics, evolving expectations, and technological advancements. At Apartmentalize 2024, Apartment List's Chief Sales Officer Mike Wolber delivered an insightful presentation on how artificial intelligence (AI) and centralization are reshaping the renter experience. To watch the full session from the conference, see below.
The key themes covered in his session include:
The Changing Renter Landscape
Mike highlighted the dramatic shift in the renter market over the past decade. One of the most significant trends is the growing preference for renting over buying. He pointed out, "right now if you look at an average rent compared to the average mortgage price, it's 40% cheaper to rent versus owning." This economic reality, coupled with changing lifestyle preferences, is creating a new category of long-term renters.
He shared a striking statistic: "25% of millennials expect to rent for the rest of their lives." This figure has doubled since 2018, signaling a fundamental shift in housing preferences that property managers and owners need to address.
Digging deeper into this trend, he highlighted the changing demographics of renters. "If you look at Gen Z, there is a preference to live closer to the city," he explained. This urban preference is reshaping the multifamily landscape, driving demand for properties in city centers and pushing developers and property managers to rethink their offerings.
The Modern Renter's Expectations
Today's renters have expectations shaped by their interactions with leading consumer brands. These expectations include:
- 24/7 Availability: "We see over 50% of contacts come in when your office is closed," Mike revealed.
- Multi-touch Engagement: Renters interact with properties multiple times before making a decision. "Our platform alone, we see a renter come to the platform 27 times before they even sign the lease," he stated.
- Personalization: Renters expect tailored experiences from their first search to every subsequent interaction.
- Speed: Quick responses are crucial. He shared, "You're seven times more likely to get a conversion if you respond within the first hour."
He stressed the importance of adapting to these expectations, particularly response times. This shift towards always-on availability challenges traditional property management models and pushes the industry towards more flexible, technology-driven solutions.
Furthermore, he highlighted the need for a seamless, digital-first experience. This means property managers need to consider every touchpoint in the renter journey, from initial search to lease signing and beyond.
Centralization: A Key to Efficiency
To meet these evolving expectations, many property management companies are turning to centralization. Mike explained that centralization involves "removing work that's happening at a singular site and putting it into an environment where an office can take care of more than a couple of properties at the same time."
However, he cautioned: "If you go into the technology space too early without a plan, you'll fail." Instead, he advocated for a bottom-up approach that starts with operational changes, moves to organizational adjustments, and then implements supporting technology.
Mike outlines the components of a three-step approach to successful centralization:
- Operational Change: "Define what types of things do you want to centralize," he advised. "A lot of our customers are starting with admin. Think collections. Rather than having your property team responsible, let's make a centralized office responsible for working on delinquencies or collections."
- Organizational Change: This step involves rethinking budgeting and staffing models. He explained, "Are we going to change the way that we're budgeting and funding roles on site? How are we going to think about our approach to headcount? There's a lot of work that's required there."
- Technology Implementation: Only after the operational and organizational groundwork is laid should companies focus on implementing new technologies to support centralization efforts.
Balancing Centralization & Localization
While emphasizing the power of centralization, Mike also stressed the importance of maintaining a local element in property management. Integrating centralization does not mean we stop focusing on local elements, whether it's how we market or how we maintain feet on the ground to connect with residents. It means we find opportunities for AI to remove repetitive, lower-impact tasks.
While the rise of technology can greatly enhance efficiency and responsiveness, it should complement rather than replace the local, personal touch that helps build long-term renter satisfaction and loyalty.
Understanding How GenAI Enables Success
Generative AI is rapidly transforming customer interactions across industries, and the multifamily sector is no exception. Mike highlighted the unprecedented adoption rate of GenAI technologies, noting that ChatGPT reached 100 million active users in less than two months, far outpacing other popular platforms.
This rapid adoption is setting new standards for customer experiences. He explained, "Our residents and potential renters are already experiencing this. It's impacting their day-to-day lives, their day-to-day brand experiences. And those expectations have now been placed on you, the property manager, to make sure that you can deliver that same experience."
Mike delved into the specific capabilities that make GenAI so powerful in the multifamily context. For example, the ability to understand context and sentiment allows GenAI to provide more nuanced, personalized interactions. He illustrated this by saying, "Is someone upset? Are they angry? Is it time for a human handoff? That's what GenAI can do." This level of sophistication enables property managers to provide more responsive, empathetic service, even in automated interactions.
Unlocking the Power of GenAI That Sells
Mike then used Apartment List's GenAI sales agent, Lea Pro, as an example of how GenAI can enhance renter interactions across multiple channels. Key features of the GenAI sale agent include:
- Omnichannel Communication: Lea Pro handles email, phone, text, and chat interactions seamlessly.
- Intent Understanding: It can engage in natural conversations, understanding context and sentiment.
- Tour Management: It can schedule tours and follow up on their outcomes.
- Proactive Engagement: The GenAI sales agent initiates warm, intuitive interactions with potential renters.
He highlighted the positive reception of Lea Pro among renters. "I was talking to a customer earlier today and they said the number one question they get when someone shows up for a tour is, can Lea do our tour?" This anecdote underscores how quickly renters are embracing GenAI-driven interactions and how seamlessly Lea Pro integrates into the overall renter experience.
The impact of Lea Pro has been significant. He shared, "We're saving [42] hours per week, which has been huge. We're seeing a significant impact in conversion, especially since it’s omnichannel, and again, [works] 24 hours a day, seven days a week."
The Apartment List Advantage: Powering Your AI-Driven Leasing Strategy
The multifamily housing industry is at a pivotal point, with changing renter demographics and rapidly advancing technology creating both challenges and opportunities. By embracing GenAI-powered solutions and strategic centralization, property managers can meet the evolving expectations of modern renters while improving operational efficiency.
Are you ready to transform your renter experience and stay ahead of the curve? Apartment List's Lea Pro and Smart Leasing platform offer a powerful solution to meet the demands of today's renters. By leveraging GenAI-driven interactions, omnichannel communication, and data-driven insights, you can provide the personalized, efficient service that modern renters expect.
Contact Apartment List today to learn how our Smart Leasing platform can revolutionize your renter engagement, boost conversions, and drive long-term satisfaction. The future of property management is here – are you ready to make your AI power play?
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