How AI & Strategic Adaptations Are Redefining the Rental Market

In a recent episode of The Digible Dudes Podcast, Apartment List COO Matt Service joined co-hosts Reid Wicoff and David Staley for an in-depth discussion on how AI and strategic market adaptations are redefining the landscape of the rental market.

The Digible Dudes Podcast features guests that are at the forefront of multifamily marketing to share their stories. The conversation between Service and The Digible Dudes took place at this year’s Real Estate Technology Conference (RETCON). To view a recording of the full conversation, click here.

Throughout the conversation Service and The Digible Dudes discussed:

Transforming Renting & Property Management with GenAI

At Apartment List, we are not just keeping up with the times; we're setting the standard for leveraging AI to deliver a premium experience for renters and property management companies (PMCs) alike. Our innovative GenAI leasing agent, Lea Pro (now free for all partners), exemplifies this commitment.

But how exactly is our GenAI leasing agent changing the game? The podcast discussion between Service and The Digible Dudes dives into how Lea Pro enhances the leasing process for parties on both sides of the rental experience.

Crafting a Seamless Renter Experience

First, Service explained how Lea Pro enables renters to dig deeper into searches and ensure whether a property meets their specific needs. Emulating the perspective of a renter, he said, “I've got a lot of questions. I need to dig in and find out if they accept Rottweilers because I've got a Rottweiler. And, on top of that, it's really important to have in-unit laundry and hardwood floors."

He mentioned that searches like the one in this example scenario often happen outside of traditional business hours, so access to timely information is critical in ensuring a seamless experience for the renter. Service indicated that renters end up with negative experiences when they have invested time in a searc, and in return “they get a blank stare back [from leasing agents] because, for whatever reason, there's a queue of emails that an agent is looking to get through.”

How can Lea Pro ensure a seamless renter experience? Service said, “It [Lea Pro] can answer those questions via multiple communication channels, whether that be email, text, chat on a property website, or voice, and give them real-time access to those answers.” He emphasized the importance of Lea Pro being able to engage with renters when they're ready and actually in search mode, even if that’s outside of traditional business hours.

Streamlining Property Management

Now flipping perspective to the PMCs, Service explained how many leasing agents today are overwhelmed due to the competitive nature of the current market. He attributes this to the record breaking amount of supply coming onto the market this year paired with already high vacancy rates.

With that in mind, Service underscored how valuable leads are for PMCs in a competitive market like the one they are facing in 2024, “Every lead is an opportunity to convert a renter into a lease, and we don't want to miss that opportunity.” He continued, “AI is really that connective tissue that helps do that.”

In terms of Lea Pro, Service explained to Wicoff and Staley that the Lea Pro does not solely work Apartment List leads. He indicated that it is a solution that sits on the property manager's side and can engage with leads from all sources, so it is an agnostic solution that works across all different channels.

Lea Pro can automate tasks and optimize workflows at scale. This frees up property managers' time and allows them to focus on providing excellent service to prospective renters and their existing tenants instead. In fact, Lea Pro saves an average of 42 hours of leasing agent time per property weekly.

Adapting to Market Nuances: A Winning Formula

Beyond exploring the benefits of Lea Pro, Service and The Digible Dudes discussed adapting to market nuances. At Apartment List, we ditch a one-size-fits-all approach, tailoring our strategies to each individual market's unique dynamics.

As Service stated, "If you look at all the stats across all the markets, they'll tell you one thing, but if you actually dig in and look at it on a market by market level, there's a ton of different dynamics." At Apartment List, our localized focus extends to how we engage supply (property listings) and demand (renters) in each market."With growing a marketplace you can't get outsized growth on one side or the marketplace gets out of balance,” Service said.

“So it's really growing a little bit of demand, then a little bit of supply to match it. And if you can do that, then overall, the flywheel starts to pick up, your conversion rates start to increase and things start to get easier.” However, Service cautioned that it is challenging to have supply and demand stay in balance.

Wicoff asked what sort of controls are in place to ensure balance at the market level. To which Service indicated that the marketplace is always evolving due to both internal and external dynamics. As far as a solution – Service said, “Really a lot of it is having the right analytics and the right visibility into your business and looking at the right things at the right time.”

Looking Ahead at the Future of Multifamily

The conversation didn’t shy away from looking ahead at the future. Wicoff pressed Service on whether he feels other ILSs will adapt to follow our lead in offering a GenAI leasing agent or if they’ll maintain the course with a traditional model.

“I can really speak to our approach, which is that innovation is good,” Service said in response. “There's an opportunity to add value to both the renters and the property managers through innovation. That's the basis on which Apartment List was established and how we try to continue to show up.”

As far as what’s next for Apartment List? Service didn’t reveal too much, but he did indicate that there is no shortage of growth opportunities that the company can invest in, so disciplined prioritization is essential. “We've applied that to AI and how it can impact our business,” Service said.

He showed what might be coming down the line: “We are pretty excited about what it [AI] can do for our overall matchmaking search and discovery experience. So those are both areas that we're excited about and trying to invest and move forward in a disciplined way.”

Ready to Unlock the Power of GenAI in Leasing?

The conversation between Matt Service and The Digible Dudes offered valuable insights into the current state of the multifamily market and the exciting possibilities that lie ahead. As Service emphasized, innovation is key to staying ahead of the curve, and Apartment List is committed to leveraging cutting-edge technology to enhance the rental experience for both renters and property managers.

If you're a property manager looking to streamline your leasing process and free up valuable time for your team, Lea Pro can be a force multiplier. See for yourself how Lea Pro can transform your leasing experience - learn more here!