AI enters the rental conversation

Artificial intelligence (AI) is reshaping how some people communicate. Residential property managers are increasing seeing tenants use these tools in their interactions. Tenants are benefiting from the knowledge available through AI tools, but there is also the risk that inaccurate advice from these same tools can lead to routine issues becoming unnecessarily escalated and contentious.

This topic first emerged through the quarterly sentiment survey we run across our network. We tested the themes through a targeted survey and interviews with Bayleys property managers across New Zealand, who collectively manage around 13,000 rental homes.

AI tools can help tenants organise their thoughts, find information, and engage more confidently on tenancy matters. This can be positive for communication and access to information. The challenge is that AI tools are not always accurate. While they can produce well-written and convincing responses, the advice may not fully reflect the facts of the tenancy, the relevant legal context, or the practical realities of a situation.

This means both tenants and landlords need to take care before relying on AI-generated guidance or forming firm views based on it.

For the sector, the bigger implication is that tenancy communication may become more detailed and more formal, which can require greater care from everyone involved. Clear records, sound processes, and a practical understanding of the Residential Tenancies Act 1986 become even more important when information can be produced quickly but may not always be correct.

This issue is particularly relevant for private landlords. Professional property managers deal with tenancy legislation, documentation, and dispute processes every day. Private landlords often have less familiarity and support when dealing with tenancy issues, which could make it harder to assess whether AI-generated claims or advice are accurate.

As AI becomes more embedded in everyday communication, the value of experience and good judgement is likely to rise.