How AI is Impacting Real Estate Investors

[Julio Gonzalez]

Artificial Intelligence (AI) has been changing the world as we know it and the real estate industry is no exception. As a real estate investor, I’m sure you are wondering how you can utilize AI in your portfolio and on your properties. AI can be beneficial both for operations as well as your taxes. Let’s dive into it further.

How is AI utilized in the operations of a real estate portfolio?

• Automation of Property Management: Say goodbye to the days of tenants texting and calling you at all hours of the day to report a maintenance issue. Say goodbye to having to collect cash or checks for rent from your tenants. AI-powered platforms can be a useful tool to manage the routine tasks of a landlord such as collecting rent, tenant screening, maintenance requests and tenant communications. This helps reduce operational costs and increase efficiencies, hopefully giving the landlord back time to spend on other areas of the business.
• Market Trend Predictive Analytics: There are AI algorithms that can analyze large amounts of data in order to predict property values and future market trends. This will assist investors in making informed decisions and to potentially identify lucrative investment opportunities.
• More Accurate Property Valuations: Property values are assessed more accurately when utilizing AI tools as they are able to take into account multiple factors including market conditions, location and the features of a property. This can help investors ensure they are making a sound investment and not overpaying for the property.

How is AI utilized in the tax strategy of a real estate portfolio?

• A streamlined process for cost segregation studies: AI is able to help streamline the cost segregation reclassifications by analyzing and identifying property components into their appropriate useful life more efficiently than traditional methods.
• The ability to identify eligible tax credits: AI is able to sort through and analyze a vast amount of tax laws and regulations in order to attempt to identify potential tax credits available to the real estate investor. This may include tax credits such as 45L for energy efficiency.
• Optimization of Energy Efficient Tax Credits: AI tools can help real estate investors identify which specific energy upgrades are the most cost-effective upgrades for their properties resulting in a higher return on the improvements.

AI can help investors be more efficient and effective with their time and money. How are you utilizing AI in your real estate portfolio?