Have you felt it? Landlording in 2024 is far more complex than simply collecting rent checks and ensuring tenant satisfaction. US landlords are contending with a myriad of difficulties, ranging from rising operational costs to stricter tenant protections. And of course, TAXES!
The average maintenance cost for a single-family home has increased by about 8% year-over-year, while property tax rates continue to increase in major cities across the US, up 7% in 2023. On top of that, new regulations have made evictions more difficult, adding further strain to the already intricate role of being a landlord.
But there seems to be hope in this, at least when it comes to technology. As the real estate industry continues to evolve, AI tools are providing groundbreaking opportunities to streamline operations, minimize risks, and enhance tenant satisfaction. In fact, the global property management software market, which includes AI-driven solutions, is expected to grow by over $52.21 billion by 2032, highlighting the increasing reliance on technology in property management.
So amidst the rising costs, tenant protections, and economic uncertainty, AI offers innovative solutions to address the pressing challenges faced by landlords in 2024.
But how exactly? Let’s find out! Here are AI solutions to your landlord woes in 2024.
Note: While these are general suggestions, it’s important to conduct thorough research and due diligence when selecting AI tools. We do not endorse or promote any specific AI tools mentioned here.
Table of Contents
Problems Landlords Face in 2024
Landlords in 2024 are dealing with numerous issues that require their attention. Some of the most common challenges include:
- Rising Costs
Landlords are seeing increases in property taxes, maintenance expenses, and the general cost of managing properties. Inflation has pushed operational costs to new heights, making profitability a significant concern for property owners. - Tenant Protections and Eviction Restrictions
With laws becoming stricter to protect tenant rights, landlords are facing more hurdles when it comes to evictions and lease enforcement. These protections, while necessary, add layers of complexity to managing properties efficiently. - Tenant Shortages and Vacancy Rates
As the economic landscape changes, some landlords are grappling with higher vacancy rates. This is compounded by rising housing prices, which make it harder for many potential tenants to afford rents. - Regulatory Burdens
New regulations in various cities and states around the US make compliance a more demanding task for landlords. Staying compliant with local, state, and federal regulations can feel overwhelming and costly. - Property Management Challenges
Managing multiple properties requires a significant amount of time and resources. Between tenant communication, maintenance requests, and financial management, many landlords feel stretched thin.
AI Tools for Landlords
With all those mentioned, it seems to be a rough time for everyone. Fortunately, Artificial Intelligence (AI) is here to offer some respite. There are AI tools designed to help landlords manage their properties more efficiently, saving both time and money.
Whether it’s screening tenants, optimizing maintenance, reducing energy costs, etc. You’ll be amazed at how convenient it is now with the leaps of AI.
Before you proceed, note that some of these tools are software technology in general and may not truly integrate AI in their systems. So do your due diligence and check by visiting their website!
1. Tenant Screening and Risk Assessment
Screening tenants is one of the most critical tasks for landlords, but it can also be time-consuming and error-prone. This tool can help with more accurate and efficient tenant screening.
Tools: National Tenant Network
- How to Use: This platform can quickly analyze tenant applications, pulling data from credit reports, rental history, employment verification, etc. This allows landlords to make smarter decisions when selecting tenants.
- Pricing: National Tenant Network has a $35 membership fee with varying prices per search.
2. Property Management Optimization
Property management can be tedious, but AI solutions are now automating many of the daily tasks that landlords typically deal with.
Tools: Buildium
- How to Use: AI in property management software like Buildium automates tasks such as rent collection, maintenance request handling, and tenant communication.
- Pricing: Buildium offers plans starting at $52 per month.
3. Energy Efficiency Optimization
With energy prices on the rise, reducing energy consumption is crucial for landlords. AI can help optimize energy use and lower costs across properties.
Tools: GOOGLE NEst, EnergyIQ
- How to Use: Smart thermostats and energy management systems powered by AI can monitor and adjust energy usage based on patterns of tenant behavior. Tools like Nest and EnergyIQ help landlords minimize waste and lower energy bills without compromising tenant comfort.
- Pricing: Nest devices start at $129, while EnergyIQ offers subscription plans ranging from $49.99 to $149.99 per property.
4. Rent Optimization Tools
Setting the right rent price is essential to balancing profitability with tenant retention. These tools can help landlords set competitive yet profitable rent rates by analyzing market data.
Tools: Rentometer, PriceLabs
- How to Use: Rent optimization tools like Rentometer and PriceLabs use data to analyze local market trends, compare properties, and determine the ideal rent amount for a given area. These platforms ensure landlords can stay competitive without underpricing their units.
- Pricing: Rentometer offers a free plan with premium options starting at $29 per month. PriceLabs has a basic pricing tier starting at $20 per month.
5. Lease Management and Legal Compliance
Navigating lease agreements and legal requirements is one of the most stressful parts of landlording, but these tools are stepping up to make this easier.
Tools: LeasePilot, LawDepot
- How to Use: Lease management platforms like LeasePilot streamline the creation of legally compliant lease agreements. They also help ensure that leases are compliant with local laws and can create renewals or notices.
- Pricing: LeasePilot starts at $100 per month, while LawDepot offers legal document services for $7.99 per month.
6. Virtual Tours and Marketing
AI is helping landlords market properties more effectively with virtual tours and predictive analytics for marketing.
Tools: Matterport, Zillow 3D Home
- How to Use: AI-enabled tools like Matterport allow landlords to create immersive 3D virtual tours, which make marketing rental properties easier and more engaging for potential tenants. Zillow 3D Home offers similar services, making the listing process smoother.
- Pricing: Matterport charges $9.99 per space per month, while Zillow 3D Home is free for basic use with premium services starting at $50 per listing.
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Conclusion
With all the changes happening today in real estate, landlords need every advantage they can get. AI offers a powerful toolkit to help you navigate the complexities of property management. By embracing these innovative solutions, you can streamline your operations, reduce costs, and provide a better experience for your tenants.
From tenant screening to predictive maintenance and rent optimization, AI can help you manage your properties more efficiently and effectively. So why wait? Start exploring AI tools today and discover how they can transform your landlord business.
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Disclaimer: The information provided here is based on available public data and may not be entirely accurate or up-to-date. It’s recommended to contact the respective companies/individuals for detailed information on features, pricing, and availability.
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Peter Kim, MD is the founder of Passive Income MD, the creator of Passive Real Estate Academy, and offers weekly education through his Monday podcast, the Passive Income MD Podcast. Join our community at the Passive Income Doc Facebook Group.