Property management: The next service as a software

By Yotam Cohen, CEO & Co-founder of Daisy

The property management industry is about to experience a major shift, thanks to the rapid progress in artificial intelligence and the idea of "Service-as-a-Software." As we enter this new era of AI, it's becoming clear that property management, which at its core is an orchestration and coordination business, is ripe for innovation.

Traditionally, property management has been a hands-on field, requiring constant communication, careful planning, and lots of paperwork. But now, the introduction of AI and machine learning is changing this landscape, turning property management into a software-driven service that offers remarkable efficiency and scalability.

The shift to software-driven property management

Moving from traditional property management to a software-based model isn't just about digitizing existing processes. It's about completely rethinking how we deliver property management services. With generative AI leading the way, we're heading towards a future where AI assistants can handle many of the day-to-day tasks that currently keep human property managers busy.

Let's consider some scenarios:

1. Predicting maintenance needs: AI can analyze data from sensors in a building to predict when something needs fixing. This proactive approach not only reduces downtime but also helps building systems last longer, significantly reducing costs.
   
   
2. Reviewing documents automatically: AI powered bots can review lease agreements, contracts, and other legal documents much faster than a human. It can spot potential issues, making sure everything’s in compliance and reducing legal risks.
   
   
3. Communicating with residents: Natural language processing algorithms  can handle many resident questions, from maintenance requests to lease renewals, providing instant responses at any time of day or night.
   
   
4. Managing finances: AI can automate rent collection, create financial reports, and even predict cash flow based on past data and market trends.

The power of data and structured information

The key to this AI-driven transformation is using data effectively. Property management creates a lot of information – from owner and resident histories and maintenance records to financial transactions and market trends. By organizing this data and feeding it into AI systems, we can unlock new insights and automation opportunities.

For example, by looking at past maintenance data, AI can not only predict when something might break down but also suggest the best time to replace it to save money. Similarly, by analyzing market data and tenant information, AI can help set the best rental prices to maximize occupancy rates and revenue.

Why property management is ready for AI disruption

Property management is particularly well-suited for AI because it involves a lot of orchestration and coordinating. Much of a property manager's time is spent on tasks that, while important, are repetitive and follow set rules – perfect for AI to handle. These include:

• Scheduling and coordinating maintenance
• Processing rent payments
• Answering common resident questions
• Creating and analyzing financial reports
• Ensuring compliance with local regulations

By automating these tasks, AI frees up human property managers to focus on higher value activities that require emotional intelligence and strategic decision making, like building relationships or planning long-term building strategies.

The future of property management

Looking to the future, we can envision a property management landscape where AI handles most day-to-day operations. Property managers will become strategic advisors, using AI-generated insights to make smart decisions about property investments, improvements, and long-term planning.

We'll also need to carefully address issues like data privacy, AI ethics, and the need for human oversight. However, the potential benefits – increased efficiency, lower costs, happier residents, and data-driven decision making are too significant to ignore.

At Daisy, we're leading this transformation. Our AI-powered property management platform is designed to automate routine tasks, provide useful insights, and empower our property managers to work more efficiently than ever before. While we're excited about what AI can do for our industry, we also understand the importance of the human touch in property management. Our goal isn't to replace humans, but to strengthen  their abilities, allowing them to provide an exceptional level of service to owners and residents.The property management industry is entering a new era – one where the lines between software and service are blurred, and where AI becomes an indispensable tool in every property manager’s arsenal. As we embrace this AI-driven future, we’re not just changing how buildings are managed; we’re redefining what property management means in the 21st century.

‍