You know that automation is valuable. When executed correctly, it saves time, improves consistency, reduces the rate of mistakes, and generally simplifies a multitude of processes. And thanks to artificial intelligence (AI) and machine learning (ML) technologies, we have access to more powerful automation technologies than ever before.
For decades now, real estate investors and property managers have tried to use technology to automate as much of the rental property management process as possible. As it stands today, is it possible to fully automate rental property management?
The Clear Option: Property Management
First, we need to address an alternative possibility: working with a property management company. Property management companies exist to simplify and streamline the process of managing rental properties. When you hire one, they’ll take over nearly all aspects of property management, including tenant screening, collecting rent, issuing maintenance and repairs, and marketing your property after a tenant leaves. In exchange, you’ll simply need to pay them a fixed percentage of the gross monthly rent you collect.
For many investors, this is the right move. It has very little significant impact on your profitability, but transforms your rental properties into truly passive investments. In a way, it’s a form of automating the entire rental property management process – even if your property management company doesn’t use automation tools in their own right.
What You Can Automate
If you decide to manage your properties on your own, or if you run your own property management company, there are many things that you can easily automate, given our modern tools:
- Rent collection. Rent collection is usually a simple matter, and something that you can easily automate. You can even automate follow-up messages if rent isn’t paid on time.
- Maintenance/repair requests. Most rental property managers have now automated maintenance and repair requests, at least initially. This system allows tenants to quickly and easily report problems, enabling landlords to act on those requests faster.
- Basic communications. Routine communications can also be automated. Depending on the scale of your operation, this can save you hours of time.
- Lease renewals. Most lease renewals are pretty simple. The boilerplate processes associated with them can typically be automated with ease.
- Aspects of tenant screening. There are certain aspects of tenant screening that can be automated as well, especially in the early stages. That said, it’s still a good idea for a human being to make the final decisions.
- Aspects of accounting. As you’re likely aware, many aspects of accounting can also be automated. Just make sure you have accurate systems for pulling in data and crunching the numbers.
- Administrative tasks. A multitude of administrative tasks in the rental property management world can be automated as well. Even something as simple as automating alerts to serve as reminders can save you time and improve your output.
- Marketing and lead generation. Additionally, there are many marketing and advertising tools that can help you automate portions of your marketing and lead generation. This is especially important if you have a large portfolio of properties, or if you experience vacancies more than average.
It’s very likely that this is only the beginning of what automation will be able to do for rental property managers in the future. Automation and related technologies are constantly developing thanks to pioneering innovators, and that momentum is unlikely to abate anytime soon.
Why Automation Isn’t Everything
However, it’s also important to recognize that automation isn’t everything.
- Complex responsibilities. No matter how many automation tools you use or how impressive those tools are, there are going to be some complex and multilayered responsibilities that are best left to humans. Even if you automate most of the work in your rental property management strategy, it’s still a good idea for a human to double check that work to make sure it was done correctly. AI hallucinations, data entry errors, and other hiccups can still throw a wrench in your operations if you’re not careful.
- Human interactions. There are some things that can never be fully automated, including satisfying human interactions. Tenant satisfaction and reduced tenant turnover are at least partially dependent on your ability to establish good communication and personal rapport.
- Intelligent strategy. Even the best automation tools aren’t as skilled as humans when it comes to high-level planning and intelligent strategy in the real estate game. You can use AI and automation to evaluate opportunities or run calculations on your behalf, but the decisions still need to be yours.
In short, we have tools that can automate more aspects of rental property management than ever before, but we still can’t automate everything associated with property management. If you want to make your rental properties as passive and painless as possible, your best option is to hire a property management company.
