Beyond Basics: Lessons from Blueprint 2024 on Transforming Multifamily Properties with AI and Smart Amenities

The multifamily property scene is changing fast, and savvy owners and managers are discovering new ways to boost resident satisfaction while streamlining operations. By using AI and offering top-notch amenities, they're making apartment living better for everyone, residents and team members alike.

The "Smart Living: Leveraging AI and Amenities to Transform Multifamily Properties" panel discussion during Blueprint Vegas 2024 brought together industry leaders to explore how AI is transforming the way multifamily properties are managed, attracting higher-quality residents, and adapting to shifting market demands. Here’s what we learned from the conversation:

The Role of AI in Multifamily Properties
How often have you seen companies claim they use AI, or even call themselves an "AI company"?

According to the panelists, this is something to be cautious of. While AI is undeniably appealing – streamlining operations and enhancing resident satisfaction – there’s a big difference between businesses genuinely integrating AI into their operations and those simply adopting surface- level applications like ChatGPT without fully committing to AI-driven transformation.

Daniel Paulino, VP Digital at Bozzuto, pointed out that simply tacking AI tools onto a website without integrating them into the company’s tech stack can limit scalability. The businesses that succeed with AI are those that see it as more than just a trend, but as an integral part of their operation that must be nurtured. Whether it’s automating routine tasks, anticipating resident needs, or analyzing data, having a long-term commitment to AI is essential for success.

For those unsure about whether to build or buy AI, Paulino emphasized the importance of nurturing the technology. AI is not a plug-and-play tool—it requires constant upkeep and optimization. If you're not prepared for that, it’s better to buy AI solutions from vendors who are ready to manage and maintain the system for you.

Enhancing Resident Experiences with AI
One of the key benefits of AI is its ability to enhance resident interactions, resulting in improved outcomes for leasing teams. Paulino highlighted that most multifamily property leads come in overnight, which often leads to missed opportunities. AI addresses this by engaging leads in real time, significantly increasing the chances of scheduling tours. This has resulted in a reported 15% boost in lead-to tour conversions, providing more opportunities for meaningful, personal interactions.

In this way, AI doesn’t replace human connection; it enhances it. By automating routine tasks, AI allows leasing teams to focus on meaningful resident interactions. Additionally, flat-rate pricing for AI solutions helps property owners manage costs better and avoid unexpected expenses.

Matias Recchia, CEO and Co-Founder at Keyway, pointed out another key advantage of AI: understanding how residents are making use of spaces in the building, such as gyms, entertainment areas, and other shared amenities. This data can help property managers make informed decisions about how to optimize these spaces to enhance resident satisfaction.

AI’s Limits: Data Isn't Everything
While AI is a powerful tool, the panelists were quick to remind attendees that it isn’t always the deciding factor when it comes to where and how people want to live. Recchia used the example of investing in Florida: despite data warning residents of climate change and rising costs, people continue to flock to the state.

This underscores a key point: data alone won’t always be the deciding factor in multifamily investments. Market trends, regional preferences, and even political climates can outweigh what the numbers say.

Paulino likened AI to a high-performance racecar: while anyone can get behind the wheel, only a skilled driver can harness its full potential and win the race. In the multifamily sector, this analogy highlights that although many companies are adopting AI, the true value comes from how effectively it is integrated within their operations.

AI Ethics and Concerns
As AI continues to gain traction, concerns about its ethical use are also growing. Greenwashing has long been an issue in the sustainability world, and moderator Caroline Frith, CEO and Founder at Banksia Advisory, speculated about whether we might see an AI-washing trend—where companies claim to be AI-driven without truly leveraging the technology in a meaningful way.

Another critical concern is how companies handle data. Recchia urged property owners to ensure their data isn’t used to train other AI models without explicit consent, especially as data privacy becomes more and more important.

AI’s Impact on Cost and Efficiency
For many multifamily property owners, cost is a top concern, and AI can play a significant role in controlling expenses. Recchia mentioned how AI can help property owners reconsider their spending on development, coding, and programming. By automating these processes, AI reduces the need for expensive manual labor, freeing up resources that can be invested elsewhere.

Additionally, AI can streamline operations in ways that directly impact the bottom line. For instance, document verification (once a time-consuming task) is now automated using AI. Daniel Berlind, CEO and Co-Founder at Snappt, humorously mentioned letting the "nerds" handle the work of verifying documents, ensuring that leases and other paperwork are legitimate while freeing up time for other essential tasks.

Is AI Right for Your Property?
While AI offers many advantages, it’s not a one-size-fits-all solution. Paulino acknowledged the uncertainty about whether AI is a lasting trend or a passing fad. However, it’s clear that when used strategically and integrated deeply, AI can significantly enhance operations and resident satisfaction.

Ultimately, AI is a powerful tool that you can use to streamline operations, enhance resident experiences, or analyze market data. But just like any tool, its true effectiveness comes down to how you choose to use it. As we look to the future of multifamily properties, we can expect to see more widespread AI adoption. However, the real winners will be those who blend AI's potential with smart, strategic decision-making to create meaningful improvements in their communities.