Recently Dustin Fjeld, CEO of Parcel SafePlace and Fjeld Consulting, featured in CoStar News talking about how AI and big data are reshaping real estate investment, and operational data from procurement to asset maintenance holds the key to maximising asset value, reducing costs and optimising portfolios. You can read the full piece in CoStar HERE, or scroll below.
“To unlock AI’s full potential, investors must ensure their portfolio operations are AI-ready. This starts with structured and standardized data collection practices.”
– Dustin Fjeld, CEO of Parcel SafePlace and Fjeld Consulting.
Dustin Fjeld, CEO of Parcel SafePlace and Fjeld Consulting.
The world of property management is evolving rapidly, but real estate investors often overlook the transformative potential of big data and artificial intelligence (AI) in enhancing portfolio operations. While traditionally data has driven decisions around rent-setting and occupancy rates, there is untapped value in operational data, especially when it comes to procurement and asset maintenance.
Operational systems like HVAC, boilers, lifts, and third-party services such as pest control and parking management account for significant operational costs. Yet, data related to these areas often exists in silos, limiting its strategic use. For investors, this means missed opportunities to increase asset value and optimize long-term returns. By centralizing and analysing operational data, AI provides actionable insights that enhance decision-making on vendor selection, budgeting, and system maintenance.
Investors need to recognize that a reactive approach to property management (waiting for something to break before addressing it) is both costly and inefficient. AI allows for predictive management. It analyses historical data from maintenance logs, service contracts, and repair trends to predict equipment failures, helping investors avoid costly unplanned repairs and optimize capital expenditure planning.
Tenant satisfaction directly impacts lease renewals and occupancy rates, and AI can play a vital role in improving the resident experience. By integrating maintenance data with CRM systems, investors can better understand how property management performance influences tenant retention. Well-maintained assets not only generate higher renewal rates but also reduce marketing expenses by minimizing turnover.
However, to unlock AI’s full potential, investors must ensure their portfolio operations are AI-ready. This starts with structured and standardized data collection practices. Unstructured or inconsistent data, often buried in outdated Excel reports, limits AI’s effectiveness. A commitment to implementing robust data systems is essential for accurate analysis and meaningful insights.
It’s also crucial to view AI as a complement to human oversight, not a replacement. While AI can process vast amounts of data and generate predictive models, human expertise is needed to interpret these insights and execute strategies effectively.
For investors seeking to future-proof their portfolios, AI and big data represent an opportunity to shift from reactive to predictive operations, improving efficiency, reducing costs, and maximizing asset value. The competitive edge will belong to those who embrace data-driven decision-making and invest in AI-readiness. As the property management landscape continues to evolve, staying ahead requires proactive adoption of these transformative technologies.
