"How do I get started with AI?" is a question we get asked all the time by clients that are curious about AI and the benefits it can bring to their organisation. They've heard that it can improve productivity, profitability and operational efficiency, but don't know if it can do these things for their organisation.
In this series, we’re exploring how AI is creating a step change in operations for property management businesses ready to adopt this emerging technology and the practical steps you can take to get started.
If you missed our other posts on AI automation for property management, you can catch up here:
Key Takeaways
Assess Current State: Conduct a thorough audit of existing processes, technology stack, and data management practices to understand how AI can fit into your operations.
Identify Gaps: Determine where AI can add value by focusing on current business challenges and aligning identified areas with overall business objectives.
Identify Upgrades for Integration: Evaluate which aspects of your technology stack need upgrading to integrate AI seamlessly, such as data management and software investment.
Consider Budget: Allocate a budget for AI implementation, including software licensing, setup, training, and ongoing maintenance.
Evaluate & Calculate ROI: Assess the potential return on investment by considering both direct benefits (reduced operational costs, increased efficiency) and indirect benefits (enhanced customer satisfaction, competitive advantage).
Develop an Implementation Roadmap: Create a phased plan for AI adoption, including preparation and planning, pilot projects, and full-scale implementation based on pilot results. Outline required investments in technology and talent for each phase.
Understanding the Benefits of AI for Property Management
AI offers numerous benefits to property management businesses. We dive deep on what these are here. By automating administrative workflows, AI allows property managers to focus on more strategic activities including those that require a human touch. This not only improves productivity but also enhances client satisfaction as issues are resolved sooner. AI can also lead to sizable cost savings thanks to its ability to perform routine tasks accurately, at scale.
How to Get Started with AI Automation in Your Property Management Organisation
Assess Your Business Needs and Objectives
Start by conducting a comprehensive review of your existing processes, technology stack, and data management practices. Start to think about how AI could fit into your operations. This involves:
Operational Workflows: Review current workflows and bottlenecks.
Software and Tools: List all software and tools in use. This will assist your AI solution provider to understand your current tech stack and where AI can be operationalised.
Identify Gaps
Determine where AI can add value and identify existing gaps. Focus on current business challenges and ensure that the identified areas align with your overall business objectives. Examples may include:
Customer Service: If your team is overwhelmed with repetitive queries, an AI-powered email solution could be an option.
Maintenance: If your process for co-ordination of maintence is time consuming and steps are being missed, AI powered workflows can automate much of this process.
Lease Renewals: If your lease renewal process involves manually collating and entering data into forms ready for signature, why not let AI do this for you.
Identify Upgrades for Integration
Identify which aspects of your technology stack need upgrading to integrate AI seamlessly. This could involve:
Data Management: Evaluate how data is collected, stored, and managed. Ensure data is clean, accurate, and well-organized. If you focus on this now, it will save a significant amount of time when it comes to implementing your AI strategy. Clean data is key.
Software Investment: Consider investing in new software that supports AI functionalities. This is also something your AI solution provider can provide recommendations on once engaged.
Consider Budget
Set aside budget for AI implementation. You'll often need budget for the upfront investment, as well as ongoing maintenance and support. Consider:
Software Licensing: Costs for acquiring AI software. Either building a custom solution or purchasing software off the shelf
Implementation: Expenses related to setting up AI systems.
Training: Costs for training staff to use AI tools.
Ongoing Maintenance: Recurring expenses for maintaining AI systems. AI solution providers will often offer a maintenance package that you can adopt as part of their ongoing support. There are often also usage costs associated with AI depending on the platform you use.
Evaluate & Calculate Return on Investment (ROI)
Assessing the return on investment (ROI) is a critical step in determining the value of your AI initiatives. By thoroughly evaluating both direct and indirect benefits, you can make informed decisions about AI investments and their potential impact on your property management business.
Direct Benefits
Reduced operational costs including automation of routine tasks and optimized resource allocation
Increased efficiency including faster response times, improved decision-making and enhanced workflow automation
Indirect Benefits
Enhanced customer satisfaction including personalized communication, proactive service delivery and 24/7 availability
Competitive advantage including innovative service offerings, market positioning and data-driven insights
Calculating Potential ROI
Establish baseline metrics. Identify key performance indicators (KPIs) before implementing AI to establish a baseline. These could include operational costs, response times, or tenant satisfaction scores.
Project Cost Savings and Revenue Increases. Estimate the potential cost savings from automated workflows, the additional productivity of your current team and fact that AI can substitute the need for additional headcount in certain areas. Project potential increases in revenue from enhanced tenant satisfaction, improved retention rates, and new tenant acquisitions.
Calculate ROI. Use the following formula to calculate potential returns: ROI=Net Gain from AI Investment/Total AI Investment ×100. A practical example: Your property management company invests $100,000 developing AI automated workflows. 12 months after implementation, you calculate the total net gain is $100,000, broken down as follows: Using the ROI formula: ROI=$100,000/$100,000×100=100%
$50,000 saved in headcount costs
$30,000 saved from reduced operational costs.
$20,000 gained from improved tenant retention and satisfaction.
This indicates that the AI investment has effectively doubled its initial cost in benefits, demonstrating a strong ROI.
Develop an Implementation Strategy
Creating a detailed implementation strategy is essential for the successful adoption of AI in your property management organisation. This roadmap should outline each step of the implementation process, ensuring a structured and systematic approach.
For guidance on how to successfully implement your AI strategy, visit our next post in the series here: How to Successfully Implement an Artificial Intelligence (AI) Strategy
At InnovAIte, we specialise in helping strata and property management organisations in Australia harness the power of AI to drive efficiencies and growth within their operations. If you're ready to explore how AI can transform your organisation, book a growth call with us today. Our team of experts will work to understand your business needs and create a strategic roadmap tailored to your unique situation.