NLP technology: AI in the real estate industry

05/09/2023

There is no doubt that the use of artificial intelligence will permanently change the real estate industry. Innovative, sustainable concepts are the key to competitive advantage, and not just in real estate construction. The use of Natural Language Processing for processing complex texts is revolutionizing real estate management and sales.

The rapid availability of information from documents is the basis for process automation and strategic business decisions.

Natural Language Processing (NLP): The technology

NLP is a field of artificial intelligence that deals with the processing and analysis of human language. With NLP, computers can understand, analyze and interpret human language - and process it at a human level. This makes it possible to automatically extract information even from long, unstructured texts and output it in a structured way.

Real estate management with AI

Management of rental contracts

Digitization, automation and management

The administration of rental contracts is often still a time-consuming and complex task for landlords and managers. The important information from the contracts, which are usually non-standardized and sometimes extensive, must be transferred to the systems - from the names of the tenants to the duration of the lease, conditions, terms of payment and termination, and obligations upon return.

Traditionally, the information is transferred manually from the rental contracts to the management system. However, this is not only a tedious task, but also one that is prone to errors and takes up a lot of time and resources. Using NLP technology, many processes and/or work steps can be (almost) completely automated.

This enables the scalable utilization of information, even from complex contracts. Real estate companies not only save time, they gain transparency and security.

Data extraction / data entry

Fully automated in the system

Using NLP technology, important information can be extracted from the leases and transferred to leading systems in a structured manner - regardless of their length, form and format. The fast, efficient and, above all, accurate availability of information ensures full transparency and speeds up processing overall.

Deadline management

Safety in the process

The automated readout of all important information from rental agreements enables a structured handling of the modalities. The terms and periods described in the text become data fields. This enables, for example, a security comparison of notice periods or the creation of notice reminders. Even in the event of a change of tenant, all important information - from deposit agreements to data from handover protocols - is quickly available.

Rent monitoring / potentials

All conditions under control at all times

Rental prices under control: Not only the current rental prices, but also index rents as well as possible adjustments at a certain point in time are important information for every real estate company. With the help of NLP technology, these can not only be extracted, but also monitored. This way, real estate companies can ensure that rents are always adjusted, if possible, and calculated correctly.

Controlling & Reporting

Automated evaluation

Reports and analysis are important to assess the condition of properties and their profitability. Information from leases can help generate these reports and track the development of rental income over time.

Compliance

Comply with legal requirements

Real estate management companies have to comply with various legal requirements - rental agreements have to comply with legal requirements. Using NLP technology, the entire contract portfolio can be quickly checked for specific criteria. In this way, rental agreements that do not comply with the specifications can be identified. Especially in the case of changes in the law or the takeover of a large number of existing rental contracts by a company, this means a great gain in security.

Identification of risks

Clause Management

Rental contracts contain information about the terms and obligations of tenants and landlords. Even in complex contract texts, NLP technology can be used to detect previously defined contract clauses with a high degree of accuracy and thus and identify potential risks, such as unclear clauses or contract terms that are not (or cannot be) fulfilled in full or outdated clauses in the contract portfolio.

Digitization & Migration

Digitize or migrate lease data

NLP technology saves valuable time and ensures accuracy when digitizing or migrating leases from one system to another. The document type is recognized, important information is automatically extracted and - if necessary after a review - transferred directly into the (new) system. This creates the basis for evaluations based on the entire contract portfolio. Via batch upload, even large volumes of contracts can be processed simultaneously.

Benefits for real estate companies through NLP technology:

Time saving

Manually entering data or searching through leases for relevant information can be very time consuming. NLP technology can extract this information automatically - saving time and resources.

Error reduction

When people manually enter or "process" lease data, errors often occur. NLP technology minimizes the risk of error - the results are accurate and consistent.

Better decision making

The ability to extract all relevant information from a lease quickly and, most importantly, with a high degree of accuracy, gives real estate companies the ability to make decisions based on a broader and more complete information base.

Process automation

NLP technology can be used to automate numerous document-related processes that are normally performed manually. This increases efficiency and creates space to drive other topics forward.

Improved data storage and analysis

By extracting information from leases in a structured way, data can be put into a uniform format and analyzed. This makes it possible to gain valuable insights from the data.

Exposé data - transparent

Automated reading of exposés

Manual work steps digitized - data availability for full transparency

Exposés are one of the most important sources of information. Usually created by brokers, however, they are not standardized and have to be sifted manually and the data transferred to the systems. This requires a lot of time and resources. In addition, there is a risk of errors, duplications and incompleteness.

By automating this process using NLP technology, real estate companies can not only save time and resources, but also significantly improve data quality.

When data is available quickly and in a structured manner, it enables real estate companies to work more efficiently and make more informed decisions. They can better assess the value of properties, optimize their marketing strategy based on nearly complete data, and more quickly target their customers’ needs.

Process automation

Efficiently save resources

Automating the data entry and evaluation process can massively increase efficiency. Automated extraction of data saves companies resources - employees can focus on strategic tasks.

Market analysis

Recognize trends and patterns

Quickly and efficiently collect and analyze information about the real estate market: With the help of the data, trends and patterns can be identified - a valuable basis for developing new marketing strategies and making decisions.

Object evaluation

Optimized pricing strategy

Carry out property valuations even faster and more accurately: The data can be used to determine the (current) value of properties - and to develop a realistic pricing strategy.

Target group analysis

Knowing the customers

Quickly and accurately collect and analyze data about potential customers: The information collected provides a more accurate picture of the specific needs of prospects and existing customers.

Offer preparation

Tailored approach

Real estate companies can use the data obtained to target potential customers more specifically and create tailored offers. Automated data evaluation enables the company to respond quickly and precisely to customer needs, thereby improving customer loyalty.

Competitive advantage

Acting ahead

By using NLP technology, real estate companies can work more efficiently and, above all, in an even more structured manner. Compared to the competition, they can react faster to new developments in the market and address potential customers in a more targeted manner.

Information availability

Time saving

Efficiency increase

quality improvement

process automation

Market overview

Optimized target group approach

Competitive advantage

NLP in practice

The AI system for processing complex documents

Latest technology enables automation

With our AI system kinisto, information from documents of any length and complexity can be converted into structured data and quickly processed further - regardless of the input channel, formats or document structure.

Basic process in document processing with kinisto:

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