Artificial intelligence has taken over the world in almost all aspects of life these days, including the real estate industry. Growing real estate companies are gaining immensely from machines’ ability to compute things that humans do.
Their technology helps manage logistics and data on a scale like never before. It is not to be mistaken for AI taking the spot of a real estate agent. With the programs developed using machine learning and AI, heavy document processes like automated lease abstraction
What is Automated Lease Abstraction?
Lease abstraction is the process of collecting data from a rental agreement for modeling and analysis. It involves the tedious process of going over numerous copies of leases and other documentation.
It is bound to take an excessive amount of time and have human errors. The time taken to go back to each of them to fix the accounting errors is what this AI-backed process is aiming to alleviate. Along with this obvious benefit, the lease abstraction process also provides the following advantages.
1). Managing the Data
Many real estate agents manage an enormous amount of data that is increasing every year. If this paperwork and information management is done by hand, they would need days, even months, to deal with it. Besides, data retrieval would also be complex. Automating data collection and management would help make the whole process safer and more accessible.
2). Increased Flexibility in Data Management
Automated lease abstraction software allows real estate agents to collect data such as the start date and the end date of the contract, designated use, clauses, lessor, lessee, etc. It further compiles the information meaningfully and allows the realtors to summarise the key points related to the lease agreement.
A customized data summary can be generated by selecting all the categories that they want to be filled with just a few clicks. It works for agents from any state, with any jurisdiction, knowing any language.
3). Insights from the Data
When collecting all the data from the clients, there would be numerous recurring patterns in terms of the financial agreement, the terms, the demands, etc.
Sometimes, even experienced real estate agents might fail to identify these patterns. AI helps identify them and generate reports about the insights which realtors can use to find out information about the business, the land, and the clients.
4). Accuracy and Consistency in Algorithms
AI allows for the software to use self-learning algorithms to understand and process data about lease abstraction formulation. This learned procedure is then applied to the upcoming documents collected and maintained consistently over several clients with high accuracy.
The simple nature of the algorithms and the continuous learning through usage allow for the software to develop more accuracy over time.
5). Calculations About Property Price
It is a challenge to calculate the actual worth of a property in the real estate industry. Generally, realtors get this information by looking into the history of the former sales.
But they might miss considering many factors adopting this strategy like transportation, infrastructure, developments, environmental changes, neighborhood, and the water supply, etc. These features add to the property value. AI helps identify the patterns and factors contributing to the property’s value and calculate its accurate cost.
6). Time Management
AI-supported lease abstraction software automatically collects data points from critical documents in a structured way. It significantly saves the time utilized by the realtors. As the information is automatically organized in the format of a summer template, reorganizing the data and extracting key points is eliminated. The summarised data can be viewed at any time.
7). Lead Management Made Easier
Lead management forms an integral part of the real estate industry, bringing more business to the realtors. With the information collected by the lease abstraction software, the marketing department of the agency can quickly develop compelling advertisements to attract more clients.
It also helps sales listings, pre-sales, and post-sales data, allowing realtors to know about the clients who are most likely to purchase the property.
8). Increased Customer Interaction
One of the latest customer interaction modes seen on every website of a real estate agent is the chatbot. This bot uses AI technology to process natural languages and smartly break down complex queries posed by the clients.
They use the updated information to provide quick solutions to the clients and learn automatically from their interactions. Automated lease abstraction takes away the pain of manual data entry and allows real estate agents to use their expertise efficiently to grow the business.