Property managers have long used technology to improve efficiency. Generative AI (GenAI) enables a growing range of efficiencies that reduce time spent on administrative functions, allowing managers to redirect that time to higher-value work. AI adoption for property management jumped from 20% in 2024 to 58% in 2025, according to Buildium’s 2026 State of the Property Management Industry Report.
James Scott, director of the Real Estate Transformation Lab at MIT’s Center for Real Estate, recently shared his expertise and insights on the use of GenAI in property management during a webinar hosted by the Institute of Real Estate Management.
Adoption Acceleration
“The numbers tell the story,” says Scott, citing a Deloitte survey showing that 72% of real estate owners and investors are budgeting for AI-enabled solutions, and a 2026 report from the Business Research Company projecting a $731 billion market value for the AI real estate market by 2028. “This is not hype or a fringe movement,” he says. “Adoption is accelerating fast.”
Scott says the average property manager spends more than 60% of their workweek on repetitive communication, documentation and administrative tasks. GenAI can automate many of these tasks, including responding to tenant emails, processing maintenance orders, handling lease renewals and preparing owner reports.
“These are all necessary tasks, but probably not the highest and best use of your time,” Scott says. “GenAI can return 10 to 15 hours a week to focus on tenant and owner relations, strategic planning and business development.”
GenAI goes beyond automation; it can improve output. A manager can prompt a GenAI tool, like ChatGPT, to draft an “empathetic but firm” email to a tenant who is overdue on rent. AppFolio reported that property managers using its AI-assisted tool reduced email drafting time by up to 11.9 hours per week while maintaining a more consistent professional tone. Human review of all output is essential, however, as AI tools may “hallucinate” (make things up).
Getting Started
AppFolio, Buildium, RealPage, RentRedi and Yardi have built-in AI features. Third-party plug-ins and standalone tools are also available.
Scott recommends starting with what your platform offers before adding new tools, stressing that AI is not a replacement for a property management platform.
Scott suggests approaching GenAI integration in four steps:
- Audit your property management software. Identify AI features you’re not using, then contact your software rep for guidance.
- Identify pain points. Survey your team on their most time-consuming tasks and integrate AI where the ROI is clearest and fastest.
- Pilot AI usage. Have a small team pilot AI tools for 30 days and track time saved, output quality and friction.
- Scale and standardize. Once you’ve identified where AI works well, build a library of approved templates, train all staff and share the wins. Create an AI usage policy and review it regularly.
Risks, Regulations and Ethics
AI models train on available data, including data with hidden bias. Scott cautions that historical data, especially from residential management, may contain information that violates the Fair Housing Act. Also, never include sensitive or tenants’ private data in AI training or use. Scott’s rule of thumb is: “Treat AI like an email. If you wouldn’t put it into a public email, don’t paste it into an AI tool.”
“The legal landscape for AI is evolving,” says Scott. “Always consult your legal counsel before deploying AI tools for screening or leasing decisions.”
