- Multifamily owners are using EliseAI, an artificial intelligence platform, to automate rent collection, manage delinquencies, and assist with drafting eviction notices.
- Companies like Brookfield, Equity Residential, and AvalonBay Communities have adopted the technology, which has been implemented in over 1M US apartments.
- Brookfield reported reducing delinquency and improving cash flow, with one property’s collection rate going up from 97.6% to 99.6% during a pilot program.
As rent delinquencies rise, multifamily managers are turning to AI to streamline rent collection, as reported by Bisnow.
They’re Coming
EliseAI, a proptech startup valued at $1B, has developed a chatbot capable of handling back-and-forth communication with tenants regarding late rent.
The chatbot has been implemented in over 1M apartment units nationwide, and major firms like Brookfield (BN), Cardinal Group, and Equity Residential (EQR) are seeing results.
Brookfield Multifamily EVP Rebecca Snyder said a pilot program with EliseAI boosted collections by 2% and sped up payments by an average of 14 days, boosting cash flow for properties with floating debt.
“Delinquency impacts the value of your asset when you go to sell,” Snyder said, emphasizing the importance of reducing late payments.
Ethical Concerns
While AI offers efficiency, ethical concerns have been raised over how it interacts with tenants. Critics argue that tenants may not realize they are speaking with a bot unless they ask directly.
Eric Dunn, National Housing Law Project’s Director of Litigation, called the lack of upfront disclosure “unfair and deceptive.” He suggested that tenants should be informed before engaging with AI.
Others worry about AI’s role in drafting eviction notices, a process traditionally managed by attorneys. Dunn warned that automating legal processes could raise regulatory and legal issues.
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The New Rent Collectors
EliseAI automates rent collection through tailored communication. It adjusts tone based on tenant payment history, providing a friendly or firm approach depending on past behavior.
The bot engages tenants via text, email, or phone and responds instantly to questions about bills or payment plans, enhancing customer service compared to manual systems.
The platform also notifies property managers when delinquencies reach specific thresholds, suggesting steps like initiating eviction processes or drafting legal notices.
Brave New World
AI adoption is growing, with companies seeking to improve efficiency and free up staff for other tasks. Snyder noted the technology’s potential to make leasing roles more attractive, helping solve hiring challenges in the multifamily sector.
However, concerns remain over AI’s limits. For now, EliseAI focuses on managing conversations, but further automation, including deeper involvement in eviction processes, is being explored.
While AI offers consistency and efficiency, ensuring transparency and adhering to regulations will be crucial as its role in multifamily operations expands.
