Blog December 16, 2021

No more risky business: How AI for multifamily keeps your properties safe

By Chris Vroman

Artificial intelligence (AI) isn’t a dream of the future anymore – it’s here now, and it’s being used in industries across the globe, including in the residential real estate sector. Over the past several years, AI for multifamily has grown from a theoretical concept to one that’s being put into practice now, benefitting residential property managers by reducing risk and saving time.

What is AI for multifamily?

AI as it exists today is a technology that mimics the neural networks of the human brain in order to learn and improve upon processes. You may be wondering, “Sounds neat, but what does that look like in practice?” Here’s how:

When an AI-powered tool receives a document for the first time, it can label the data it’s been shown and then search for patterns in that data. From there, it’s able to use predictive computing power to build its own model of what data is supposed to look like, and as more documents come in, the AI-powered tool can better recognize what it’s looking at, pulling information from its understanding of the model and placing it in the appropriate category. As it processes each document, the tool would learn from feedback and become more accurate in how it operates.

So why AI for multifamily, and why now? While the concept of AI conjures pop culture images of sentient robots and virtual butlers for many, AI as a real scientific possibility has existed for more than 60 years, with the term “artificial intelligence” being coined as early as the 1950s. But what started off as a possibility has now become reality as the computing power of modern technology has finally caught up to the research that began when the computer itself had just been invented. When it comes to AI for multifamily, this technology is able to provide great benefit to residential property managers by helping to mitigating risk.

How to reduce risk with AI for multifamily

AI for multifamily isn’t about technology for technology’s sake. The responsibilities of residential property managers are becoming more difficult than ever before. Fraudulent activity has increased in recent years, and if your organization falls victim, you could be exposed to financial damages, especially during the application process.

With fraudsters taking advantage of new technology to produce fake IDs and evade traditional screening procedures, shouldn’t the digital boom benefit property managers too? AI-powered multifamily software solves for that exact problem, making your job easier by helping to secure your property, residents, and staff.

ID verification
In recent years, rental fraud has become increasingly prevalent – rampant, even – in multifamily with increased use of digital services. According to Forrester, 97% of property management companies have experienced fraud. AI-powered ID verification helps you identify qualified applicants and improve tour security while still adhering to Fair Housing standards. In addition, these solutions can help you ensure the safety of both your staff and your residents.

Screening
Even with improved ID verification measures, your property could still be exposed if your screening processes are producing false positives – whether by denying qualified prospects or approving future residents with inconsistent histories. AI for screening can help mitigate risk at your properties by assessing an applicant’s past payment and delinquency behaviors to predict what kind of resident they’ll be.

Insurance
As much as we try to prevent problems from happening, accidents are an unavoidable part of life – from large natural disasters to small kitchen fires. To minimize risk for the community, many multifamily properties have put resident insurance compliance programs in place to reduce risk and minimize loss by closing gaps in coverage. With an AI-powered solution, your property can ensure compliance with an applicable insurance program in order to protect your property and your residents.

In a digital world where committing fraud is easier than ever, securing your property should be too. AI-powered multifamily software can enable you to mitigate risk at the application and insurance phases of the residential lifecycle – and when it comes to up-and-coming technology that makes life in real estate easier, this is only the beginning. Learn more about how you can protect your multifamily property with AI-powered screening, insurance, and ID verification solutions.

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