AI systems can turbocharge property management operations with automation and efficiencies, however implementation is not always straightforward, especially when cultural differences are taken into account.

The processing power of AI allows asset owners to automate property management functions and to make the best use of data produced by sensors and building management systems.

The hardware for building management systems can be thought of as an asset’s nervous system, which produces the data to be analysed by AI which becomes the building’s brain.

This enables the automation of functions such as maintenance, security, entry systems, lease and contract reviews and energy management. For example facial recognition and similar technologies can be used for building entry, car park entry and to spot thefts within a premises.

The carrot for asset owners is that these efficiencies reduce labour costs and, in the case of energy management, can save on utilities charges. For example, predictive maintenance of equipment can save on call-outs and repair costs.

Neil MacGregor, Managing Director of Savills Vietnam, says: “The real estate industry is generally a reluctant adopter of technology, but forward-thinking asset owners can see the speed to market, cost savings and adaptability of AI-enhanced property management.”

A brand new Grade A building should be ready to go, with its ‘nervous system’ already in place however older assets will need some capital expenditure. MacGregor says: “Where buildings are more than five years old or below Grade A standard, there may be some capex involved to put the necessary tools in place which will enable asset owners to capitalise on AI.”

The costs involved are not necessarily significant but the benefits depend on the building and its strategy. For example, where a lower-grade building is being upgraded to Grade A standards and seeking a green certification, it is relatively easy to see the pay-off for installing sensors and a building management system.

However, despite more AI-powered solutions on the market, MacGregor concedes that a ‘one stop’ solution for property management is still hard to find, as few off the shelf solutions do everything a landlord might want. As a consequence, firms such as Savills are investigating adding AI capabilities to their existing in-house building management systems.

Implementation across a region as diverse as Asia Pacific also brings challenges, says MacGregor. “Chatbots can be an effective replacement for building receptionists, for example, however in Vietnam, the receptionist is seen as an intrinsic part of a residential building, so owners and tenants are resistant to the tech.”

However, he says, “AI accelerates efficiencies and reduces costs, which will look more and more attractive across a portfolio of assets. The more data they generate, the most AI can do with it.”

Further reading:
Savils Property Management

Contact us:
Neil MacGregor