AI and Affordability in Living Real Estate Operations

Student housing is evolving. So is Build-to-Rent. And Co-Living. But these changes aren’t happening in isolation. What’s unfolding is a deep convergence of the living real estate sectors, driven by shared investors, overlapping operational needs, and a standard set of economic pressures.

Episode 3 of Room to Grow explores what this convergence means for operators and why AI, automation, and more innovative platforms are now at the heart of building resilient and scalable rental portfolios.

Blended Models Are the New Reality

For years, PBSA, BTR, and Co-Living followed distinct trajectories. Purpose-built student accommodation had its own lettings cycle, operational logic, and investor base. Build-to-Rent focused on long-term residents and urban professionals. Co-Living sat in between, often seen as the flexible younger cousin.

Now those lines are fading. Student providers are expanding into multifamily housing. Co-Living is being repositioned as flexible stay accommodation across Europe. Investors fund blended portfolios and expect operating models supporting short, medium, and long-term stays in one framework.

This isn’t just a branding shift. It is an operational one. And most tech stacks, teams, and service models were not built for it.

The Old Return Model Doesn’t Hold

The traditional approach with a business plan in a spreadsheet, 10 to 12% projected returns, and annual uplift, is under pressure.

Letting cycles are becoming more unpredictable. Summer voids are harder to fill. Operating costs are rising, especially when spread across siloed systems, manual workflows, and high staffing ratios.

Operators now need to find margins in more innovative ways. That means monetising summer and shoulder season gaps with short-stay strategies, lowering cost-to-serve through automation, and empowering leaner teams to deliver more.

For many, this involves shifting away from traditional revenue management toward an operating approach more closely aligned with a tech company focused on efficiency, speed, and data-driven decision-making.

AI Isn’t a Feature. It’s a Foundation

Artificial Intelligence isn’t just a helpful tool. It is quickly becoming the backbone of modern real estate operations.

AI is already replacing hours of manual work, right from financial reconciliation and data analytics to workflow routing and CRM engagement. The difference is not marginal. Teams that once spent hours preparing reports or sifting through bookings can now access real-time outputs, allowing them to focus on strategy, service, and growth.

This shift is also reshaping organisational structures. On-site teams remain essential for delivering human interaction. But head-office functions like leasing, marketing, reporting, and analytics are being transformed by AI-native tools.

Rather than hiring to plug operational gaps, leading operators are investing in technology that helps their existing teams achieve more.

The result is a leaner, more agile organisation that can grow without increasing headcount at the same rate.

Why the Property Management System Is Being Rebuilt

Legacy PMS systems were not designed for flexible rental models. Most legacy PMSs struggle to accommodate short stays, cross-border expansion, or integrated digital journeys. As a result, many operators have ended up with fragmented tech stacks that are expensive, difficult to scale, and slow to adapt.

The next generation of PMS platforms is being built with flexibility at the core. These systems support a full range of stays, from nightly bookings to annual leases and provide real-time insights across operations, finance, leasing, and resident services.

Importantly, AI is not just layered on top. It is embedded throughout the platform, handling resident communications, maintenance workflows, pricing decisions, and operational forecasting.

Smaller point solutions that serve only one function are increasingly at risk. As platforms consolidate, operators are looking for end-to-end solutions that reduce friction and improve visibility, not more disconnected tools.

Premium or Lean: Two Models, One Truth

As the sector evolves, two dominant models are emerging.

One is the high-touch premium experience, where personalisation, design, and service quality define the value proposition.

The other is a leaner, affordability-focused model, where value is created through operational efficiency, self-service options, and technology-first delivery.

Both models require robust systems. In the premium model, technology enables staff to focus on the resident experience. In the lean model, it becomes the service channel itself.

In both cases, clarity is key. Operators must understand which touchpoints matter, what can be automated, and how to deliver consistent service across diverse portfolios.

Global Vision, Local Execution

Although the podcast reflects primarily on UK and European trends, the operational challenges are global. Rising cost pressures, changing resident expectations, and policy volatility are creating friction across geographies.

Operators looking to scale across borders must balance standardisation with local nuance. That means multilingual systems, modular process frameworks, and tools that allow for variation without complexity.

It also means preparing for unpredictability with systems that enable agility and adaptability from interest rate shifts to student mobility trends.

Final Thought: Operational Intelligence Will Define the Winners

The next phase of growth in living real estate won’t be driven by whoever builds the most units. It will be led by those who operate the smartest.

AI, automation, and flexible tech platforms are no longer optional. They are the foundation for scalable, resilient, and investor-ready operations.

Whether focused on premium service or affordability, the competitive edge will come from clarity of execution, smarter decision-making, and the ability to adapt in real time.

The operators who recognise this shift and act on it will be the ones who lead.

Listen to Episode 3 of Room to Grow on YouTube and Spotify.

Originally published Aug 12, 2025 11:08:08, updated Sep 04 2025

Topics: Living Real Estate, QX Insights