Six Reasons Why AI Is About to Make Tenants Positively Giddy

Traditionally, the tenant and landlord relationship has been a transactional one, involving leases and maintenance issues. Post covid saw a slight shift in that relationship as tenants and landlords worked together to encourage people to return to the office. Artificial Intelligence (AI) is about to shake the very foundations of that relationship. Property managers are now able to dramatically improve a tenant’s life and at the same time make their buildings more efficient. Here are six areas that will give tenants reason to embrace AI.

1. Automated Communication and Tenant Support

• AI-driven chatbots and virtual assistants. Imagine tenants having the ability to get immediate responses to routine questions, such as lease terms, payment options, maintenance requests, or building amenities. This frees up property managers and ensures tenants receive timely and accurate information.
• Tenants can be easily guided through things like booking common spaces, submitting complaints, or even applying for new leases, dramatically improving daily experience.

2. Predictive Maintenance

• AI can analyze data from building systems such as HVAC systems, elevators, lighting, etc., to predict maintenance needs before problems occur. By preventing breakdowns, property managers can avoid disruptions that might negatively affect tenants, ensuring smooth operations and a better tenant experience.
• This proactive approach can also help extend the life of building equipment, reducing long-term costs, reduce waste, and improve things like air quality.

3. Tenant Services

• AI can track tenant preferences and behaviors to personalize services. For example, if tenants frequently use certain building amenities such as fitness centres or meeting rooms, AI can optimize the availability and settings of these spaces based on demand, making the tenant experience more convenient and enjoyable.
• AI can also help property managers offer tailored incentives or services to tenants, such as discounts for long-term leases or access to premium services based on usage patterns.

4. Tenant Retention Analytics

• Imagine getting regular reports of tenant behavior, feedback, and satisfaction levels which would allow property managers to identify at-risk tenants who may be considering leaving. By understanding the reasons tenants may be considering leaving, property managers can proactively address tenant concerns before they escalate, improving retention rates.
• AI can also suggest targeted retention strategies, such as offering rent discounts, flexible lease terms, ice cream days or sustainability events to keep valuable tenants satisfied and likely to renew their leases.

5. Space Utilization

• Property managers through AI can track real-time space usage to optimize building layouts and common areas. Tenants can now be guaranteed access to shared resources they frequent like conference rooms, workspaces, or parking based on needs and preferences.
• By predicting tenant usage patterns, AI can also suggest space allocation adjustments, such as reconfiguring underused spaces or offering more flexible leasing options, leading to better tenant satisfaction.

6. AI-Powered Tenant Loyalty Programs

• AI can help property managers create loyalty programs that reward tenants for long-term occupancy or engagement with building amenities. For example, tenants could receive points for participating in building events, referring new tenants, or renewing their lease early.
• By analyzing tenant preferences, AI can tailor loyalty rewards to what individual tenants value most, increasing satisfaction and retention.

All of these will result in happier, more engaged tenants with the obvious paybacks – higher rents, higher lease renewal rates and increased asset value. But there is also a secondary benefit that comes with engaged tenants. Progressive property managers who are continually looking for ways to improve the sustainability of their buildings, now have tenants who understand the benefits of these initiatives and will be active partners with each initiative.