Leveraging AI in Multifamily Operations: A Strategic Roadmap Emerges

Leveraging AI in Multifamily Operations: A Strategic Roadmap Emerges

Artificial intelligence (AI) isn't just a buzzword; it has become a strategic advantage in multifamily operations. From streamlined leasing to predictive maintenance, forward-thinking operators are embracing AI not merely as an incremental improvement but as a foundational shift. At Percy, we’re committed to helping multifamily professionals understand and implement these transformative technologies effectively.

This article was inspired by insights shared during the National Association of Home Builders International Builders Show featuring Lisa Gunderson, Partner and VP of Asset Management at Bristol Development Group, and Dr. Amruth Sivalenka, Senior Vice President of Revenue Management and Data Science at Spherexx, as well as the Thesis Driven Leaders Series podcast, featuring a conversation between Brad Hargraves and Minna Song, CEO of EliseAI.

AI Integration in Leasing and Revenue Optimization

Bristol Development Group, a regional multifamily developer, provides a compelling case study of successful AI integration through its partnership with Spherexx, an AI-driven software provider. Utilizing integrated CRM and revenue management systems powered by AI, Bristol achieved remarkable results:

• 185 man-hours saved by automating 35% of after-hours leasing interactions. Lisa Gunderson noted, “Thirty-five percent of the interaction that we had with people looking to rent an apartment occurred when we didn’t have humans in the office. It equates to 185 man-hours saved.”

• Incremental revenue increases of approximately $100 per unit during the lease-up phase. Gunderson explained Bristol experienced a “$100 rent increase per unit from the lease-up start to stabilization.”

These results clearly demonstrate that embracing AI-driven solutions can enhance both efficiency and profitability, even in softer market conditions.

Expanding AI Beyond Leasing

Initially popularized by leasing automation, AI is now driving operational efficiencies across the entire resident lifecycle. EliseAI, an enterprise-grade AI platform for multifamily operations, showcases the potential of broader AI applications. The rapid adoption of EliseAI by Stonehenge, a multifamily operator based in New York City, illustrates this broader implementation. Minna Song shared, "In three weeks, [Stonehenge] said, ‘Get this on all of our properties as soon as you possibly can.’” The technology quickly expanded across Stonehenge's portfolio, automating essential tasks including:

• Delinquency collections: Automated follow-ups improved timely payments and resident communication. Song emphasized, “The AI is reaching back out and saying, ‘Hey, I haven't received it. Any issues, can I help?’ Meeting residents where they are is what drives results.”

• Maintenance requests: AI streamlined maintenance scheduling and technician assignments, dramatically enhancing efficiency.

• Document management: Reducing administrative overhead through intelligent automation.

EliseAI highlights the vital role of comprehensive automation to enable centralized management, allowing operators to manage larger portfolios without compromising service quality.

The Next Frontier: Predictive Analytics

Looking ahead, predictive analytics will reshape multifamily property management. Minna Song underscored this future trend, stating, “Data is the next big thing...predictive decision-making is coming online. People are sleeping on data, but that's gonna change really soon.” Already evident in Bristol Development’s proactive rent optimization strategies using Spherexx’s predictive AI tools, predictive analytics will soon drive broader operational efficiencies, particularly:

• Renewal insights: Predictive modeling will anticipate resident renewals, enhancing retention strategies.

• Predictive maintenance: AI-driven maintenance platforms will leverage data analytics to predict and proactively address equipment failures before they occur.

Lisa Gunderson reinforces this by highlighting, “The revenue models respond to interest and capture the most beneficial rents... it’s capturing what’s happening in terms of interest for our apartments.” High-quality data collected through routine AI interactions offers unprecedented predictive capabilities, positioning operators to proactively manage assets and improve resident experiences.

Strategic AI Implementation

To successfully leverage AI, multifamily operators must fundamentally rethink existing workflows and organizational structures. Minna Song emphasizes the need for strategic realignment: “You can't say, ‘Hey, one person in a different location, do 10 buildings, 20 buildings' worth of work.’ You need AI that can do 95% of that work.” Operators that merely layer AI onto existing systems will see modest improvements at best. True transformation requires:

• Customized centralization strategies: Tailored to property characteristics—such as size, geographic distribution, and staffing levels. Song stresses, “Every portfolio is different... no one-size-fits-all. You might not have success if you just copy another company’s centralization.”

• Workflow re-engineering: Designing processes around AI capabilities rather than retrofitting technology into outdated methods.

Operators who adopt a strategic, integrated approach will realize exponential efficiency gains and significantly improve operational outcomes.

Broader Industry Insights and Investment Context

The strategic value of AI extends beyond immediate operational benefits, influencing broader investment trends. EliseAI’s recent $75 million fundraising round signals strong institutional confidence in AI’s transformative potential, paving the way for further innovations not only in multifamily but across other sectors like healthcare. Song confirms EliseAI’s strategic vision, noting, “We’re building technology for industries serving fundamental human needs… expanding into healthcare.”

Conclusion: Embracing the AI Revolution

AI in multifamily operations is no longer optional—it’s becoming essential. Owners, operators, and developers must strategically integrate AI technologies and predictive analytics to remain competitive. Percy is dedicated to supporting multifamily professionals in navigating these transformations effectively, positioning you to optimize performance, enhance resident satisfaction, and thrive in an increasingly data-driven market.