Artificial intelligence is no longer a buzzword in the multifamily industry. It’s here, reshaping leasing, operations, and resident engagement. But while adoption is rising, many teams are still struggling with a critical question: How do we evaluate AI tools in a way that drives real impact?
The answer depends on understanding the difference between external AI tools (software that interacts directly with prospects and residents) and internal AI tools (software that supports staff behind the scenes). Both categories have enormous potential, but they must be measured differently to determine true success.
Rather learn about internal vs. external AI solutions via video? Skip to minute seven.
The Rise of AI Leasing and Virtual Leasing
Renters today expect instant, digital-first experiences. Just as e-commerce giants like Amazon or hospitality brands like Marriott have set the standard for seamless customer journeys, prospects in the multifamily industry want the same from leasing teams.
This is where AI leasing and virtual leasing tools come in. External-facing AI software like Nurture Boss’s AI property management platform can manage follow-ups, schedule tours, and nurture residents with rent reminders and proactive community updates. Internal-facing tools, on the other hand, help teams with data analysis, reporting, curating emails, or automating manual workflows to help the individual employee get a job done better.
The challenge is measuring performance in a way that shows clear ROI.
Evaluating External AI Tools
External AI software is often easier to measure because it interacts directly with prospects and residents. The KPIs you already use to evaluate human performance can also apply to AI leasing platforms.
Common success metrics for external AI tools include:
- Lead-to-tour conversion rates
- Response times
- Lease conversion rates
- Resident satisfaction and retention
- Online reviews
For example, delinquency and collections are one area where AI can take over the heavy lifting for leasing teams. No one enjoys knocking on doors or conversing with residents to pay their rent on time over and over again. With empathetic, consistent, and persistent outreach, AI can achieve double-digit percentage increases in collections compared to manual staff efforts. Unlike leasing teams, AI doesn’t get tired of follow-ups or avoid tough conversations.
When evaluating external AI software, it’s not just about measuring the technology. It’s also about measuring the partnership with your vendor. As outlined in our How to Run a Head-to-Head AI Pilot eBook, here are some critical factors to monitor during a pilot with an AI solution like a Virtual Leasing Assistant:
Vendor Experience
- How do they handle feedback?
- Are they easy to reach?
- How quickly do they resolve issues?
- Do they act on your input?
Stakeholder Feedback
- Is the onsite team noticing daily improvements?
- Are prospects and residents having better experiences?
- Is marketing seeing a measurable difference?
AI Monitoring
- Can you easily track the AI’s activity?
- Are conversations integrated into your CRM?
- Can you access call recordings?
- How often does the AI escalate to a human?
This pilot process is detailed further in our eBook, which is packed with unbiased information and frameworks to help multifamily operators make smarter AI decisions.
Evaluating Internal AI Tools
Internal tools like AI-powered analytics dashboards or automated reporting platforms are harder to measure. They don’t directly interact with renters, so their value comes from how much they improve staff efficiency and decision-making.
Here’s where many organizations struggle: A 2023 MIT study revealed that 95% of internal AI implementations fail because they don’t actually make jobs easier. If the technology creates more friction, requires extra logins, or complicates workflows, teams won’t adopt it.
Questions to ask when evaluating internal AI tools:
- Does this software integrate with systems we already use?
- Does it save onsite teams time every day?
- Can we quantify that time savings?
- Does it improve the quality of decisions we’re making?
- Are team members excited to use it, or resistant?
Unlike external AI, which has clear leasing KPIs, internal AI success should be measured in terms of adoption, efficiency gains, and qualitative staff feedback.
Setting Expectations for AI Performance
A common misconception is that AI will instantly double conversion rates or eliminate human effort altogether. The reality is more nuanced.
- AI should not perform worse than humans.
- AI should perform incrementally better with measurable improvements over time.
- Expect steady, compounding gains. Not magic bullets.
Most importantly, technology vendors need to be transparent about realistic outcomes. Teams should approach AI adoption with the mindset that incremental progress is still success.
Internal vs. External: A Balanced Approach
The multifamily industry doesn’t need to choose between internal and external AI tools. Both are necessary for long-term success. The key is knowing how to measure each one differently.
- External AI tools (AI leasing and virtual leasing assistants) should be judged by traditional KPIs like conversion, retention, and satisfaction.
- Internal AI tools should be judged by adoption, time savings, and staff empowerment.
Together, they create a flywheel effect where teams are both more effective in front of prospects and more efficient behind the scenes.
