How to Use AI to Optimise Your Rental Pricing Strategy

Artificial intelligence or AI is part of the future. As a multi-property owner, it’s important to recognise how this technology plays a role in the London property market.

For one, AI algorithms can efficiently analyse vast property market data. With a click of a button, property investors, developers, builders and other professionals can look at historical property prices, forecast market trends and monitor location-specific data. These provide real-time property valuations that lead to smarter investment and business decisions. It also helps minimise errors while maximising returns.

AI technology is also useful for handling guest inquiries, maintenance requests and booking schedules - specifically in the short-term rental industry. Even if you advertise your property on multiple platforms, AI can consolidate all the bookings to avoid double bookings.

With AI’s ability to efficiently process data, multi-property owners and managers can easily optimise their rental pricing strategy. Platforms like Airbnb and Booking.com have dynamic pricing tools powered by AI technology to help hosts calculate competitive rental prices. This allows them to take advantage of the volatility of the property market so they can maximise their rental revenue.

This is what this article will focus on. You’ll learn how to use AI technology to increase your rental income. You’ll also get tips to find the best AI tools that can maximise the earning potential of your properties.

2 Ways to Use AI to Increase Rental Revenue

According to a tech company, AI is transforming short-term rental management. The high guest turnover means operating and managing short-term rentals can be tedious and time-consuming. But with AI, it’s now easier to optimise properties to improve their performance as a rental unit. Property management processes become easier as AI conveniently monitors its performance. This tech tracks the property’s data so property owners and managers can make critical decisions to improve its value and earning potential.

To understand how AI can improve your rental revenue, take a look at the two ways that this technology can maximise a rental property’s revenue.

Set up dynamic pricing strategies

The property market is very volatile. Not only that, rental demand keeps fluctuating. This makes dynamic rental pricing the best option to achieve maximum rental revenue. Unfortunately, this requires continuous monitoring of the rental property market’s movement. You need to keep an eye on the changes and fluctuating demands so you can achieve rental price optimisation.

This is only doable if it’s the only thing you have to do - which isn’t the case for multi-property owners. A huge portfolio of properties comes with a multitude of tasks that require simultaneous attention.

Here’s where AI can can help. Through AI rental pricing tools, multi-property owners can efficiently analyse data to monitor market trends, seasonal changes and different demands. With a click of a button, they can input parameters like property values, location and amenities so the AI can cross-reference it with the general rental property data. This will allow the AI tech to come up with fair rates that will maximise the revenue potential of the property while keeping rental apparel high.

Reduce property management overheads

On the other side of the rental income is the expenses. AI technology plays a role in minimising property management costs including utility bills, administration fees, maintenance costs, mortgage payments, insurance premiums, etc.

If done right, you can significantly slash your overhead and operations costs to increase your profit margin.

For instance, AI can help you track smart detectors installed on the property. This ensures that any leaks will be addressed immediately to avoid major repair costs. AI technology can also track maintenance schedules and payment due dates. These will help you miss unnecessary fees and penalties.

You can also rely on AI to track conversations with guests. It can also be set to notify service providers directly if there are emergency requests. This will ensure that urgent needs can be attended to without delay. 

AI can also serve as a chatbox to answer frequently asked questions immediately (e.g. tourist attractions, local numbers, etc). This will help improve the guest experience - which could lead to positive reviews.

Where to Find AI Technology to Optimise Rental Prices

Using AI rental pricing tools can help multi-property owners achieve maximum rental returns and occupancy rates. The question is, where can you find reliable AI tools?

Here are 3 options that you can choose from.

• Online tools. These tools use algorithms that will analyse data to give optimal pricing strategies for your rental property. You can use either paid or free tools that can be downloaded or used on a platform. These tools will allow you to input data about your properties so they can analyse relevant data and come up with a competitive pricing strategy for each. The good thing about these tools is they are a great starting point because they are user-friendly and typically come with affordable subscription plans. The downside is it may not recognise specific property features or amenities that can provide further rental pricing optimisation.
• Online letting platforms. There are platforms like Booking.com and Airbnb that integrate AI technology to help respective hosts optimise their rental prices. What’s great about these tools is they are tailored to the specific features of your rental property. The platform can also use the data of other properties listed with them - and this will provide the AI tech with greater data to analyse. However, these can sometimes be an add-on cost to hosts. Not only that, the platform may be biased to their property listing and this can comprise the flexibility of your pricing strategy.
• Property management companies. There are companies like Opago that offer dynamic rental pricing strategies on top of their property management services. Opago uses AI technology to combine real-time market data from authority sites and the property performance of the ones they manage. This AI rental pricing strategy adjusts according to the seasons and ensures competitive rental returns. What’s great about this option is it acts as a one-stop shop for all rental property management needs. Multi-property owners can also take advantage of the property marketing expertise and in-house cleaning and maintenance services provided by the likes of Opago. Although the fees may be higher, they include all overhead costs associated with property management. Not only that, the fees are usually commission-based. This means the property experts only get paid when the property earns.

Start Using AI to Maximise Rental Revenue

Leveraging AI technology is effective in optimising rental pricing strategies to increase rental income and occupancy rates. There are two ways that it can help, by setting competitive rental prices and lowering property management overheads. Combined, these can increase your profit margin and investment returns.

Of course, the rewards will depend on what type of AI technology you’ll use. You can get these AI rental pricing tools online, through online letting platforms or by partnering with a property management company like Opago. Each of these options is effective and should be considered based on your specific portfolio goals.

If you prefer to partner with Opago, you’ll get access to their smart proprietary platform that includes dynamic rental pricing tools powered by AI technology. They have property experts who can reduce overhead costs and keep your property compliant to ensure maximum earning potential. Opago uses AI technology to optimise the property’s performance to keep guest satisfaction and property value high.

Get to know more about how Opago integrates AI technology in its property management services. Contact us so we can discuss solutions to transform your multi-property portfolio.