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AI solutions for landlords in 2024

September 20, 2024

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Did you feel it? Being a landlord in 2024 is far more complex than just collecting rent checks and keeping tenants happy. U.S. landlords are dealing with a variety of difficulties ranging from rising operating costs to stricter tenant protections. And of course, TAXES!

The average cost of maintaining a single-family home has increased by about 8% year over year, while property tax rates in major U.S. cities continue to rise and are expected to increase by 7% in 2023. In addition, new regulations have made evictions more difficult, further straining the already complicated role of the landlord.

Yet, at least when it comes to technology, there seems to be hope. As the real estate industry continues to evolve, AI tools are offering groundbreaking opportunities to streamline operations, minimize risk, and increase 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.

With rising costs, tenant protections, and economic uncertainty, AI offers innovative solutions to address the most pressing challenges facing landlords in 2024.

But how exactly? Let's find out! Here are AI solutions to your landlord problems in 2024.

Note: While these are just general suggestions, it is important to do thorough research and due diligence when selecting AI tools. We do not endorse or promote any of the specific AI tools mentioned here.

Problems landlords will face in 2024

Landlords face numerous issues that require their attention in 2024. The most common challenges include:

Rising costs
Landlords are faced with rising property taxes, maintenance costs and the general costs of managing properties. Inflation has driven operating costs to new heights, making profitability a major concern for property owners.
Tenant protection and eviction restrictions
As laws protecting tenants' rights become more stringent, landlords face increasing hurdles when it comes to evictions and enforcing leases. While these protections are necessary, they add complexity to managing properties efficiently.
Tenant shortage and vacancy rates
Given the changing economic situation, some landlords are struggling with higher vacancy rates. In addition, rising property prices are making it difficult for many potential tenants to pay the rent.
Regulatory burdens
New regulations in various cities and states across the U.S. are making compliance a more challenging task for landlords. Complying with local, state, and federal regulations can be overwhelming and costly.
Challenges in property management
Managing multiple properties requires a lot of time and resources, and many landlords find themselves overwhelmed with tenant communications, maintenance requests, and financial management.

AI tools for landlords

Given all of this, it seems like difficult times for everyone. Fortunately, artificial intelligence (AI) offers some relief. There are AI tools that help landlords manage their properties more efficiently, saving time and money.

Whether it's screening tenants, optimizing maintenance, reducing energy costs, etc., you'll be amazed at how convenient it is today thanks to advances in AI.

Before you go any further, note that some of these tools are generally software technology and may not actually have AI built into their systems, so be careful and check by visiting their website!

1. Tenant screening and risk assessment

Screening tenants is one of the most important 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

Application: This platform can quickly analyze tenant applications and pull data from credit reports, rental histories, employment records, etc. This helps landlords make smarter decisions when selecting tenants.
Prices: The National Tenant Network charges a $35 membership fee with varying pricing per search.

2. Optimization of property management

Property management can be tedious, but AI solutions now automate many of the daily tasks that landlords typically deal with.

Tools: Buildium

Application: AI in property management software like Buildium automates tasks like collecting rent, handling maintenance requests, and tenant communications.
Prices: Buildium offers plans starting at $52 per month.

3. Optimizing energy efficiency

With energy prices rising, it is crucial for landlords to reduce energy consumption. AI can help optimize energy consumption and reduce costs across all properties.

Tools: GOOGLE NEst, EnergyIQ

Application: Smart thermostats and energy management systems based on artificial intelligence can monitor energy usage and adjust it based on tenant behavior. Tools like Nest and EnergyIQ help landlords minimize energy waste and reduce energy bills without compromising tenant comfort.
Prices: Nest devices start at $129, while EnergyIQ offers subscriptions ranging from $49.99 to $149.99 per property.

4. Tools for rental optimization

Setting the right rent price is critical to balancing profitability and tenant retention. These tools can help landlords set competitive yet profitable rents by analyzing market data.

Tools: Rentometer, PriceLabs

Application: Rent optimization tools like Rentometer and PriceLabs use data to analyze local market trends, compare properties, and determine the ideal rent level for a given area. These platforms ensure that landlords can stay competitive without selling their units below value.
Prices: Rentometer offers a free plan with premium options starting at $29 per month. PriceLabs has a base pricing tier starting at $20 per month.

5. Lease management and legal compliance

Navigating leases and legal requirements is one of the most stressful aspects of being a landlord, but these tools make it easier.

Tools: LeasePilot, LawDepot

Application: Lease management platforms such as LeasePilot simplify the creation of legally compliant leases. They also help ensure that leases comply with local laws and can initiate renewals or terminations.
Prices: LeasePilot starts at $100 per month, while LawDepot offers legal document services for $7.99 per month.

6. Virtual tours and marketing

AI helps landlords market properties more effectively using virtual tours and predictive marketing analytics.

Tools: Matterport, Zillow 3D Home

Application: AI-powered tools like Matterport allow landlords to create immersive 3D virtual tours that make marketing rental properties easier and more attractive to potential renters. Zillow 3D Home offers similar services that make the listing process more seamless.
Prices: Matterport charges $9.99 per room per month, while basic use of Zillow 3D Home is free and premium services start at $50 per listing.

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With the changes taking place in real estate today, landlords need every advantage they can get. AI offers a powerful toolkit to help you navigate the complexities of property management. By using these innovative solutions, you can streamline your operations, reduce costs, and provide a better experience for your tenants.

From tenant screening to predictive maintenance to rent optimization, AI can help you manage your properties more efficiently and effectively. So what are you waiting for? Discover AI tools today and learn how they can transform your landlord business.

Subscribe to our newsletter for exclusive insights, tips and resources on AI for landlords. And don’t forget to check out our free AI resource page for curated tools and information to help you get started.

Don't miss it! There will be more in the future. Let's make it happen.

Disclaimer: The information provided here is based on available public data and may not be entirely accurate or current. It is 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 the Passive Real Estate Academy, and provides weekly training through his Monday podcast, the Passive Income MD Podcast. Join our community in the Passive Income Doc Facebook group.

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