Can AI the New Tool In Real Estate

Question

Would you trust AI to screen your next tenant / flag your next flip / underwrite your next loan? Yes, no, or 'not yet' drop your comment below 👇"

Ed Barone · Answer

Hi Lamancha,

We are big believers in AI, but we don’t think it’s ready yet to screen tenants.

We use TransUnion for credit, criminal, and eviction reports and Plaid for Assets and Income verification, but leave the final decision to the landlord based on their screening criteria.

Also, an AI model can create liability if it uses inaccurate consumer-report data, cannot explain the principal reasons for an adverse decision, applies criteria inconsistently, or produces discriminatory outcomes, even unintentionally.

AI may eventually help landlords evaluate applicants more efficiently and consistently. But for now, we think better data, clear screening criteria, and human judgment are the right approach. FWIW.Ed

Chris Seveney · Answer

AI has been used to screen tenants for as long as I've been alive. It's called a credit report.

LaMancha Sims · Answer

Greg - Thanks for that input. I hope more people add what they think here. I want as much input on this as I can get.

Greg Malanga · Answer

Not yet. I build AI tools for a living and I still wouldn't hand it the final decision.

Great for the reading — comps, spreads, flagging what's missing. Terrible as the one who has to own a bad call. AI's my analyst, I'm still the underwriter.

(And on tenant screening specifically "the algorithm denied you" is a fair-housing lawsuit waiting to happen.)

Can AI the New Tool In Real Estate

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