If you’re a property owner, you’ve likely grappled with the challenge of setting the right rental price.
Too low, and you could be leaving money on the table. Too high, and your property could sit vacant for months.
Traditional methods of estimating rental prices, such as comps or cost-based pricing, often fall short. But what if we told you there’s a smarter way to do this?
Companies like Beekin are harnessing the power of artificial intelligence to revolutionize the real estate market. This technology brings unprecedented accuracy to rental valuations, promising a suite of advantages for both property owners and tenants.
Let’s start by understanding why traditional techniques simply do not suffice anymore.
Why Traditional Methods Fall Short in Rental Predictions
Traditionally, calculating rental prices has been done through a combination of comparative market analysis and real estate industry insights. However, these methods are not always sufficient to capture the true rental value of a property.
First, there’s the issue of market dynamics. In traditional methods of rental prediction, market data plays a crucial role. However, this data is often outdated and doesn’t account for rapid changes in the market. Property owners can be left in the dark which can lead to properties being under or overpriced resulting in revenue losses or long-term vacancies.
Second, traditional methods are extremely time consuming and require a considerable amount of expertise to perform correctly. This often leads to property owners or managers spending needless hours trying to determine an accurate rental value for their property. And despite all this strenuous effort, inaccuracies and biases can still be prevalent.
Third, traditional methods typically do not factor in property-specific characteristics. For instance, while a certain neighborhood might generally fetch high rental prices, a property within that neighborhood might have unique features that should bump its price up – or down.
Ultimately, such subjective and labor intensive methods have a substantial chance of producing inaccurate or sub-optimal rental values, leading to a series of cascading problems for property owners such as loss of potential revenue and longer vacancy periods.
So, how can AI revolutionize the entire rent prediction process with the push of a button?
How Does AI Accurately Predict Rental Prices?
Artificial Intelligence has the potential to analyze huge data sets within milliseconds. This data includes real estate trends, local demographics, housing conditions, and much more. This wide wealth of information, along with the use of sophisticated algorithms, allows AI to pinpoint accurate rental valuations, maximizing profitability for property owners while also ensuring fairness for tenants.
Moreover, this isn’t a one-feature show. AI-powered platforms like Beekin, bring with them a basketful of additional benefits. They help owners manage their properties with powerful business intelligence and predictive tools, enhancing the profitability of their investment. Streamlined revenue management processes, reduced costs and a solid grip on your business – right at your fingertips.
How Does This Impact Revenue Management for Multi-unit Properties?
Imagine overseeing fifty apartments, all different sizes and locations. It can be an extremely overwhelming task to optimize your revenue strategy when handling multiple units with variable rent prices, unique market situations, and timing disparities.
Traditionally, it might require an army of analysts to accurately forecast rental rates and understand the local rental markets fully. Not anymore. The innovative AI-powered technology can do this much faster, much more accurately, and in real-time.
Beekin uses a wealth of data, including local market trends, property conditions, and even demographic shifts to precisely predict rental revenue. This eliminates guesswork and can drastically improve revenue streams, taking into account a multitude of factors that human analysis could easily overlook or misinterpret.
However, it’s not just about maximizing rental income for property owners. An additional bonus is the potential reduction in vacancies. With the right pricing strategy in place, driven by accurate, AI-assisted predictions, properties are more likely to remain occupied, ensuring constant income.
Additionally, streamlining rent pricing can lead to better tenant satisfaction, potentially reducing turnover and fostering longer-term leasing. This happens when tenants feel they’re paying a fair market price for their rental properties instead of feeling overpriced. A win-win situation for both the property owner and the tenant.
Why Use Beekin?
Since Beekin’s launch in 2019, our patented technology has helped optimize over $8 billion of assets, generating alpha for our clients in the tens of millions.
Beekin’s advanced AI model leverages demographic, area, and transactional rent data from comprehensive real estate sources, allowing your organization to be up to 60% more accurate than any competitor, with superior precision.
Still not convinced AI is the future?
Book a demo today and we’ll show you how we can seamlessly transform your approach to revenue management.