AÏ Banks Property Management is a proptech company that bridges the gap between landlords and residents through AI integration of the traditional property management system. Protecting landlord investors and residents while stimulating the real estate landscape through increasing property value, AÏ Banks utilizes an innovative bank leasing solution and maintains residences through human and technological intermediaries for more than 10,000 doors across the USA.
Ever since land ownership has existed, there has been a fraught, adversarial relationship between landlords and their tenants due to the power differential between those who rent land and those they rent it from. The National Institute of Health reports that during the pandemic, rental property owners had to absorb a financial strain of an estimated $57 billion in rent arrears. This resulted in 9% of landlords receiving less than 50% of rent payments in 2020, a pressure that is further exacerbated for small owners and property owners of color. This means that, apart from a severely impacted ability to maintain residences and renters’ quality of life, landowners’ ability to pay mortgages and access investment was also diminished.
People lost their livelihoods through the pandemic, renters and landlords alike. In 2020, a relatively short number of months and some missed payments seemed to have caused the traditional rental model to fall apart for almost everyone involved. The fragility of the rental system, as Rocky Morocco, founder of AÏ Banks, states, is not something to take lightly. “The hard times we went through during the pandemic were completely unnecessary because the moment a renter’s lease agreement is signed, it could have been bonded, insured, and guaranteed to a point where nobody loses.”
Michael Vogrin, the first landlord client of AÏ Banks, has experienced the system’s weaknesses first-hand. “Residents and landlords lose out throughout this entire scenario. I’ve foreclosed two houses, and it’s a horrible feeling. Not only for residents to lose their homes, but for a neighborhood to now have a foreclosure devalue their community. But there’s no other option. If people are unable to pay their rent, then I can’t pay the mortgage.” Although residents often assume that landlords have multiple properties and exist as big business entities, in reality, almost half of the US rental supply is owned by singular ‘mom-and-pop’ owners. While larger entities can handle rent arrears, individual landlords use a large portion of their revenue for property maintenance, mortgages, and taxes. This is made even harder when residents and landlords are expected to be at odds with each other.
The reason why property management is often an additional stressor for landlords is that they are expected to address their residents’ worries and maintain homes without much support. AÏ Banks removes the so-called power struggle between landlords and residents through their AI property management solution. They have restructured property management and decreased labor costs without any extra expenses to either party. Their model mediates daily management operations through AI and technologies such as smart doorbells, energy-efficient savers, and other home automation systems. “This is AI working alongside humans,” says Rocky.
Through their partnership with a property management AI model, AÏ Banks evens the playing field between landlords and residents. This is because, in addition to their property manager intermediaries, the company enables landlords to save money and boost rental profits through guaranteed rent payments. Their bank leasing system, which Rocky discovered through his parents in the 80s, ensures consistent monthly payments without the typical burdens that landlords have to carry, regardless of whether residents experience a bad month or two where they are unable to make rent.
“It’s an insurance product where we lease your properties to renters. Once a renter signs their lease with us, we report rent payments to credit agencies and furnish the financing for renters to purchase homes within their neighborhood,” explains Rocky. As renters build their credit scores through the company’s model, there will be a transition from renting to ownership while ensuring that landlords’ properties are consistently occupied and maintained. This, in turn, boosts property values across neighborhoods, further enhancing landlords’ portfolios.
The relationship between landlords and residents no longer needs to be taken into account in daily operations, as interaction with tenants is completely mediated by their AI model. As a value-driven company, AÏ Banks is committed to reversing the fragility of current economic systems by rebuilding communities with each door they open. As Michael Vogrin certifies, “In this scenario, everybody wins.”
