AI Drives Rental Revolution in Apartment Market

Industry Insights from CNBC Property Play

The once slow march of technology into the rental housing market has reached a pivotal moment, as artificial intelligence begins to transform how tenants, landlords, and investors interact across the multifamily industry. From streamlining leasing operations to optimizing investment decisions, AI is reshaping the foundation of apartment living and management.

From Rent Checks to AI-Powered Operations

Traditional practices like manual rent collection and maintenance requests are gradually being replaced by digital solutions. Now, AI is accelerating this shift, automating processes such as lease renewals, resident communications, property tours, and even investor due diligence. While early adoption has been fragmented across various vendors, the integration of AI presents a significant opportunity for startups and the venture capital firms supporting them.

Emerging Categories of AI in Rentals

On the investment side, AI is transforming underwriting and acquisitions. Instead of manually reviewing leases for large property purchases, investors can now feed lease documents into AI models, which extract and summarize essential data for valuation. According to John Helm, founder and partner at RET Ventures, this innovation significantly accelerates the due diligence process. RET Ventures, backed by more than 60 multifamily operators with over 3 million units, has focused its investments on advancing AI-driven solutions in both real estate and rent technology.

Streamlining Property Management

AI is also making inroads into property development and accounts payable. RET portfolio company PredictAP automates invoice processing by scanning, extracting, and entering data directly into payable systems, eliminating the need for manual coding. This reduces inefficiencies for developers working with multiple vendors in areas like landscaping, plumbing, and utilities.

Centralizing the Renter Experience

Another key player, Funnel, is redefining the leasing process for large apartment operators and real estate investment trusts. Backed by RET Ventures, Funnel partners with companies such as Camden Property Trust, MAA, Essex Property Trust, and Cortland. Its approach emphasizes brand-level relationships rather than property-level interactions. Funnel’s AI enables portfolio-wide automations, including cross-selling opportunities when tenants relocate across markets, creating a more seamless renter journey.

Industry Challenges Ahead

Despite its promise, AI in the multifamily sector is still in early stages and remains costly. Many operators and investors are experimenting rather than fully committing to long-term strategies. With nearly 50 million rental units in the U.S., most owned by small landlords, industry fragmentation poses another challenge. Even the largest apartment REITs manage only about 50,000 to 100,000 units each, leaving significant room for wider adoption.

As Helm noted, the next several years will be critical in determining which AI-driven tools mature into scalable businesses. For now, the industry is at the beginning of what could become a fundamental redefinition of how apartments are marketed, managed, and invested in.

Source: CNBC

Prepared by: Next Move Strategy Consulting