Artificial intelligence (AI) is transforming how properties are maintained, leased, and operated. In commercial property management, AI is no longer a futuristic concept. It is now a practical tool being adopted across portfolios of all sizes to automate operations, improve decision-making, and deliver better tenant service. While the opportunities are significant, AI also introduces new legal risks and regulatory concerns that property managers must understand.
This blog will explore the current role of AI in property management, highlighting the ways it enhances operational efficiency, supports smarter planning, and opens new possibilities in commercial and niche property types. It will also address critical legal considerations, including antitrust risks, and offer a look at what lies ahead.
Streamlining Operations with AI
AI-Powered Leasing and Communication
AI is helping property managers handle leasing with greater speed and consistency. Platforms like Entrata have rolled out advanced virtual assistants that operate across channels—chat, voice, email, and text. Their solution, ELI+, is more than a chatbot. It integrates with property management systems and handles inquiries, prequalifications, and follow-ups automatically, available 24/7.
Entrata reports that properties using ELI+ have seen increases in conversion rates and faster response times. Instead of waiting for office hours or staff availability, prospective tenants can receive instant answers. This keeps leasing pipelines active and reduces drop-offs during the application process.
AI in Maintenance Reporting and Tenant Services
AI tools are also improving how maintenance issues are reported and resolved. According to a Forbes article by Kathleen Walch, many property management platforms now allow tenants to upload photos of problems, such as plumbing leaks or damaged walls. Image recognition technology helps categorize the issue and route it to the appropriate maintenance technician.
This visual reporting process shortens resolution times and reduces unnecessary inspections. AI chatbots can also handle routine tenant questions about rent payments, amenities, or service schedules, allowing property managers to focus on more complex needs.
Automating Invoice and Document Handling
AI in property management is also driving back-office efficiencies. Entrata’s ELI Invoice Entry system uses machine learning to extract data from uploaded PDF invoices. Instead of manually entering information line-by-line, property managers can review and approve AI-populated entries that feed directly into their workflow.
This reduces errors, speeds up the approval process, and helps managers stay on top of vendor payments. The system learns over time, improving its accuracy with each invoice reviewed.
Smarter Decision-Making Through AI
Predictive Analytics and Investment Insights
AI can help property managers make better strategic decisions by processing large datasets at speed. Forbes highlights how predictive analytics tools assess variables like market demand, historical occupancy, and seasonal trends. This allows property managers to anticipate vacancies, forecast maintenance spending, and prioritize capital improvements.
With AI, property managers can shift from reactive to proactive planning. By understanding which areas are likely to need repairs or where tenant turnover may occur, they can budget more effectively and avoid costly surprises.
Automated Valuation Models (AVMs)
AVMs are another AI application making a big impact. These tools use data points like square footage, location, comparable properties, and local market trends to estimate property value.
For commercial property managers, AVMs help with lease negotiations, refinancing decisions, and portfolio evaluations. By leveraging AI-based models, they can generate fair, real-time valuations without relying solely on external appraisers.
Industry Expansion and Application Areas
AI in Commercial and Mixed-Use Properties
AI is increasingly being deployed in commercial real estate environments. Entrata has expanded its capabilities to better serve properties with commercial tenants. In particular, their tools simplify the complexities of NNN (Triple Net) lease structures.
With AI, property managers can more accurately track expenses passed on to tenants, streamline financial reporting, and improve transparency. This is especially valuable in mixed-use buildings where operational costs must be split between residential and commercial tenants.
AI in Manufactured Housing and Niche Property Types
Entrata has also made strides in applying AI to manufactured housing, which has different operational needs than traditional apartment buildings. Their tools support modular lease management, site-level scheduling, and document automation.
For managers of mobile home parks, RV communities, or specialty properties, AI introduces new levels of efficiency. Instead of relying on manual records or disjointed tools, managers can run day-to-day operations through a unified system powered by AI.
Legal and Ethical Considerations
Pricing Algorithms and Antitrust Risks
While AI can optimize pricing, it also introduces potential legal pitfalls. The U.S. Department of Justice is actively investigating software platforms like RealPage for potentially enabling price coordination among property managers. According to Akerman LLP, these concerns stem from algorithmic pricing tools that may create “hub and spoke” conspiracies.
In this setup, competing companies rely on a shared AI vendor, which may use pooled data to recommend rent increases. Even if property managers don’t directly communicate, this coordination can lead to antitrust violations. The DOJ considers such conduct as serious as traditional price fixing.
Risk Management for Property Managers
To reduce legal exposure, property managers should avoid AI tools that rely on competitor-provided or non-public data. Managers should ask vendors how their models are trained, whether external pricing feeds are used, and how user data is handled.
It is also important to have legal counsel review AI software agreements. Vendors must offer transparency around how algorithms make decisions, especially when it affects rent pricing or leasing activity. Property managers need to stay informed as regulators increase oversight of algorithmic platforms.
The Future of AI in Property Management
Toward Autonomous Property Management
Entrata has made clear its goal of creating a truly autonomous property management platform. Their ELI+ initiative includes AI modules for leasing, communication, document entry, and tenant engagement.
Over time, the platform will be capable of managing full property lifecycles with minimal human intervention. Managers will be able to focus more on growth strategies and tenant relationships while AI handles repetitive, rules-based tasks.
Balancing Innovation with Oversight
As AI becomes more embedded in daily operations, the need for responsible use grows. Property managers should prioritize transparency with tenants, audit AI outputs regularly, and monitor for unintended biases or errors.
Ethical use of AI is becoming a competitive differentiator. Managers who adopt technology thoughtfully will be better positioned to navigate changes in regulation and earn trust from residents, investors, and partners.
Staying Ahead with Property Manager Insider
AI in property management is helping commercial property managers increase efficiency, deliver faster service, and plan more effectively. From leasing and maintenance to valuation and analytics, the tools available today are already making a major impact. But with innovation comes responsibility.
Understanding the legal risks and ethical considerations is essential. As this technology continues to evolve, property managers who stay informed will be better equipped to make the right decisions for their properties.
For more updates on the latest technology trends in commercial property management, or to connect with qualified contractors through our BidSource tool, visit Property Manager Insider today.
