AI can be a valuable tool for many industries, but it should be used with caution. Large language models such as ChatGPT can be used in a variety of ways to get the most out of them in the real estate and rental industries, but it is important to know what they can and cannot be used for.
As AI is introduced to the public and tech experts highlight the productivity benefits of AI technology across all industries, real estate experts have joined in the conversation. There’s no doubt that landlords and property managers could benefit from some tech productivity hacks to make their day-to-day tasks easier.
ChatGPT is a language model developed by OpenAI. According to OpenAI, its dialog format lets it generate human-like replies to a wide range of questions and instructions, answer follow-up questions, admit mistakes, and even challenge incorrect premises. If you work in the real estate or rental industry, here are some helpful tips for using ChatGPT and other AI technologies.
What is ChatGPT?
ChatGPT is an LLM (large language model), a machine-learning artificial intelligence that can answer questions in a chat format. ChatGPT and other models are capable of more than answering a simple question, however. Users can ask ChatGPT to debug or write simple code, write essays on specific topics, or create a meal plan from a list of ingredients.
While it has taken the world by storm, critics in the tech industry have suggested that its technology is not as revolutionary as the public may believe. Whether that is the case or not, there are many options available for widespread use that are as complex and comprehensive as what OpenAI offers. Google, Anthropic, and Meta all have their own LLMs that have become quite popular among users.
Like any tool, ChatGPT has its limitations. It is designed to process and rephrase the information it consumes, but it isn’t always capable of providing accurate summaries. This can mean that you may be given outdated or completely inaccurate data and that responses may be incorrect. Just as an ordinary Google search will not always bring up exactly what you need the first time, an AI-based web searching platform (including Google Overview) may sometimes miss the mark. Knowing that AI is a relatively new tool in your toolbox, some uses are not recommended.
How Industry Professionals Use AI
AI is being used in a wide variety of places in the industry, ranging from the automation of simple tasks such as sending emails to more complex tasks such as creating listings or leases.
While many of these automated tasks can be extremely helpful, it is still important to note that not every task can or should be automated. Automation often reduces or even eliminates the human touch from many interactions, which can cause difficulties with communication and building relationships.
The Benefits of ChatGPT
ChatGPT and other AI models have plenty of uses, such as the automation of many repetitive and relatively simple tasks. While most written mediums benefit from an additional human touch, especially in an age where AI is heavily distrusted by many people, an AI model can assist in development. You should always check the AI’s work to ensure that no mistakes have been made, but it can help with simple tasks such as:
- Assisting with listing descriptions
- Crafting emails and newsletters
- Creating quick captions for social media posts
- Getting content and script ideas for short videos on YouTube and social media
- Gathering blog or website content ideas and inspiration
- Rewording cumbersome language for text or email communications with clients or tenants
AI can also be helpful for gathering and compiling data for purposes such as estimating the value of a home. As a general rule, the information and content an LLM provides should always be fact-checked, but it can be a useful tool for gathering sources of information and compiling data.
If you utilize software to manage your real estate portfolio, you may have access to helpful AI tools that can streamline your workflow. Rentec Direct property management software, for instance, offers the ability to:
- Instant Property Descriptions for Rental Listings
- Automatically Post Expenses With the New AI Invoice and Receipt Scanner
The Drawbacks of ChatGPT
I will be the first to admit that I don’t like or use AI much personally. AI is not currently in a place where it can accurately relay the intricacies of legal documents or other similarly complex documents. As such, it shouldn’t be relied on for the development of leases or other legally binding contracts.
Additionally, many people have an inherent distrust of AI or obviously AI-generated property listings, as many people assume they are more likely to be scams or indicative of low effort from landlords or property managers. This mentality is particularly prevalent in the United States. 50% of adults in the U.S. state that they are more concerned than excited by the increased use of AI in people’s daily lives, while only 10% report feeling more excited than concerned about the use of AI. While AI can be useful to streamline workflow and generate key marketing language like property descriptions, it should always be vetted and polished with a human touch. This ensures your listings come across as real and trustworthy, and compliant with fair housing laws.
AI automation can reduce the human touch needed to build connections, so you should also avoid using it solely for important communication with tenants. Because most LLMs write in a similar style, it has become easy for many readers to spot AI.
Final Thoughts
While AI won’t be able to do your job anytime soon, there are certainly some helpful uses that can ensure you have time to tackle more important tasks in your day. LLMs can be useful for streamlining your day-to-day tasks and hastening the pace of much of your work.
Remember that while ChatGPT and similar products have their place, successful real estate professionals, landlords, and property managers must be ready to personally foster a great relationship with clients, tenants, and owners. After all, nothing can completely replace the human touch, and this will remain especially true in the real estate industry.