AI And The Short-Term Rental Industry: How It Could Impact Hosts And Property Owners

Navigating The Future Of Real Estate Investing With AI

As AI technology continues to evolve, the impact of AI in real estate will grow, along with other technologies, such as blockchain, for secure and transparent transactions. Chatbots can assist with customer service, taking care of basic and questions from potential buyers, as well as automatically scheduling tours and viewings. Lenders have used AI for nearly 30 years for automated underwriting, according to the Mortgage Bankers Association. And new AI tools such as fraud prevention, next-generation chatbots, back-office automation, and document recognition are being evaluated, says Rick Hill, the MBA’s vice president of industry technology. Over 10,000 real estate professionals from top brokerages like Compass, Keller Williams, RE/MAX, Coldwell Banker, SERHANT.

Consider partnering with AI experts or adopting platforms that offer user-friendly interfaces to ease the transition. Before technological developments, the real estate industry relied heavily on manual processes. Agents and brokers maintained extensive networks of personal connections, often relying on word-of-mouth referrals and physical property listings to conduct business. Some AI tools designed for real estate agents offer free basic versions, while others require monthly or annual subscriptions. It’s important to evaluate the ROI in terms of time saved and value added to your real estate business.

“For example, if it mentions specific schools as ‘good’ or says a home is near places of worship, you have to take that out, even if it’s positive,” says Beacher. The Sterling company JK Moving, for example, uses an AI app that virtually surveys the size and volume of rooms, furniture, and appliances for moving estimates. That has increased its number of potential daily estimates by 50 percent, says company president David Cox. Collov AI is also planning to launch new features to support listing prep—from generating social media posts and listing videos to one-click property websites—helping sellers market listings faster and more effectively. A global car manufacturer has adopted an agent that automatically generates email replies to supplier inquiries, such as questions regarding the status of invoices.

AI tool: Smart Targeting predictive analytics

These measures protect tenant and investor data while allowing real estate teams to leverage AI-driven lease insights with confidence. To ensure the team does not blindly rely on the data, we implement a “trust but verify” approach in our underwriting. For example, even though the AI offers the projected property value over time, my team is still tasked with conducting their own independent sales comp analysis. This means they carefully analyze the pricing in the market historically, along with other market trends, to determine if the projections the AI offers are indeed reasonable or not. To err on the side of caution, we’ll often take a more conservative approach and reduce the projections down further. HomeLight provides recommendations for top-performing agents and steers folks looking to sell homes to its Simple Sale product, which taps into a network of over 70,000 preapproved agents and over 150 cash buyers who compete to buy.

The Role Of Real Estate Professionals In An AI-Driven World

HouseCanary’s detailed reports enable agents to offer data-driven advice to clients, ensuring informed decision-making in both buying and selling processes. AI-supported property valuation and market analysis tools give real estate agents a decisive edge in quickly and accurately determining property values and understanding market trends. By leveraging large datasets, these tools offer precise, data-driven valuations and insightful analysis.

How Generative AI Will Change The Job Of Real Estate Agents

Real estate companies are using artificial intelligence (AI) to improve agent productivity, which they believe will be even more necessary due to changes to their commission structure — mainly on the buyer’s side. In the realm of upscale real estate, new technologies may be bringing in new avenues of reaching and assisting buyers, but relationships established in the offline world remain as crucial as ever. This site, launched last summer, has marketed itself as “Pinterest Meets Houzz,” and uses AI to help people find newly-built homes around the country based on their preferred design features. The website has 1.4 million listings across the U.S. to buy or rent and provides a Tinder-like interface, allowing users to swipe left on properties they don’t like and right on properties they like. “There are a lot of problems with going to websites and seeing the same property over again,” says Sean Muir, the company’s product designer. Proptech focuses on devices that enable landlords and homeowners to monitor properties remotely.

How Keyway is Building a Secure AI Framework

They can automate your repetitive tasks, for example, allowing you to focus on building relationships and providing personalized service. Lease abstraction is also a critical yet data-heavy process in commercial real estate. According to Recchia, KeyDocs extracts key terms from lease agreements, automating legal document review and compliance tracking.

• In underwriting, AI is used to analyze borrower information, including credit scores, income, and employment history, to evaluate the borrower’s risk profile and find the best rate to charge.
• Some start-ups are developing similar technologies that show renderings of properties that don’t exist yet.
• The technology helps increase the pool of potential buyers since anyone with a connected device can get a good look at the property.
• As for hosts, they’ll need to accept where they’re failing and work to rectify those issues instead of hacking their review process.
• AI chatbots can play a role in tenant screening, much like their uses in customer service across other industries.

Best for short-term rental data

Lofty’s (formerly Chime) AI Assistant is one of the industry’s most advanced and useful AI tools for real estate agents. More than a simple chatbot, Lofty’s AI Sales Assistant helps you qualify and convert leads on your website, set up showing appointments and even nurture leads for the long haul. I also love how you can set it to qualify leads, get appointments or monitor behavior, and it starts working all by itself. The company’s AI Copilot helps you navigate and solve tech issues through a simple chat interface (think ChatGPT) within their popular Lofty CRM suite. Collov AI uses proprietary AI agents to stage photos with photorealistic results in seconds. Agents can choose furnishing styles, swap layouts, and make advanced edits—like room decluttering or adjusting lighting—all in one easy-to-use platform.

Any business that involves data is a good target for AI, and there’s plenty of data in real estate. Appraisals and estimates have traditionally been based on neighborhood comparisons and human opinion, but AI-based algorithms are increasingly used to generate these estimates. The first entry point into AI for many buyers, sellers, and owners happened years ago with the Zillow platform’s “Zestimate” tool. Today, agents use AI for things like listing language, data gathering, and virtual renderings. Choose AI tools for real estate that comply with data protection laws like GDPR and have robust security measures. Regularly update your systems and educate yourself and your team on best practices for data privacy.

Cost efficiency is another factor that drives many real estate companies to invest in AI solutions. AI is transforming real estate economics by automating routine tasks and enabling predictive maintenance, leading to significant cost savings. To put this into context, the overall global real estate market was valued at $3.9 trillion in 2023, growing to $4.12 trillion in 2024. Although AI currently represents a fraction of the total market, its rapid expansion underscores the increasing role of AI technologies in driving the industry’s future. For example, AI-generated 3D models enable prospective buyers to tour a property from the comfort of their homes.

From uniquely personalized recommendations and pinpoint pricing strategies to automated property maintenance and steps forward in customer service, AI has made the world easier. At the same time, modern consumers expect more from every penny they’re willing to part with, and with competition as it is, they’re getting it. Integrate reliable data sources, stay agile with market changes and build an interdisciplinary team to monitor and adjust AI tools regularly. Specific business needs, data availability and your team’s expertise will influence the success of your AI implementation.

• The redesigned pages will display overall and category-specific ratings, meaning hosts must pay attention to every part of their presentation and process.
• The ability to deliver high-quality, tailored images instantly has become a strategic necessity.
• Technologies evolve, and complexity grows; therefore, successful implementation of AI in real estate requires more than just acquiring AI tools.
• Ylopo is an AI-first lead generation and nurturing platform that offers sophisticated AI-powered chatbots and voice assistants to help you qualify and nurture leads.
• Beyond insights for high-end buyers, technology can help agents get to know their customers—perhaps before they even meet in person.
• “I have heartburn because my daughters may want to become agents someday and I don’t know how much all the disruptions in real estate will change things in the next ten to 20 years,” says Leigh Reed, an agent with Long & Foster in Bethesda.

Generative AI has the potential to transform many of the day-to-day tasks carried out by real estate professionals. For example, it can quickly generate property descriptions and listings to entice potential buyers. This could involve using computer vision to analyze photographs, floor plans or even video captured by drones and translating them into written descriptions. But AI tools for real estate agents are meant to complement personal interactions, not replace them.