Artificial Intelligence and the landlord’s lot…

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Talk of AI is all the rage right now, but have you thought about how you could use this revolutionary new development?

ChatGPT is what is known as a “natural language processing tool” driven by artificial intelligence (AI) technology that allows human-like conversations. This “large language model” can answer questions and assist with tasks, such as composing emails, writing contracts or business plans, even music and computer code.

The Google search engine’s power is its ability to do enormous database lookups and provide a series of matches. Open AI ChatGPT’s (the acronym for Generative Pre-trained Transformer) power on the other hand is its ability to parse queries and produce answers and results based on most of the world’s digitally-accessible text-based information – at least the information that existed at the time of its pre-training.

The next stage is to incorporate the technology into a Microsoft Bing or Google Bart search engines which is happening now.

Despite warnings of where this GTP technology might be leading us, it has some obviously immense capabilities and the power to assist humans, including landlords and letting agents, in performing many mundane tasks at great speed. It also has the power to do away with many of the jobs that exist today.

Some examples

This is an example of  Google “Bart’s”, its own version of AI, when asked to describe the landlord’s lot in the form of a Shakespearean sonnet.

This is what it gave within 20 about seconds:

The landlord’s lot is a hard one indeed,
To keep the roof from leaking and the walls from falling down.
To pay the bills and keep the tenants happy,
And to make a profit, if they’re lucky.

The landlord is always at the mercy of the market,
Of the economy and the whims of the tenants.
They are the first to be blamed when things go wrong,
And the last to be praised when things go right.

But despite all the challenges,
The landlord’s lot is not without its rewards.
There is the satisfaction of providing a home for others,
And the knowledge that they are making a difference in the world.

So if you are considering becoming a landlord,
Be prepared for a challenge.
But also be prepared for the rewards,
Of making a difference in the world.

The landlord’s lot is a hard one,
But it is also a noble one.
They are the ones who provide us with a place to call home,
And they deserve our respect.

Wow, not rhyming but pretty good, insightful and accurate.

Some warnings

Some key figures in the technology world including Elon Musk are calling for a halt in the development of artificial intelligence, they want training of powerful AI systems to be suspended amid fears of a threat to humanity. They have signed an open letter warning of potential risks, and say the race to develop AI systems is out of control.

But AI is with us already, it’s in our phones and you interact with it whenever you call your bank. It’s just that these latest developments and the competition among the tech giants to develop the Chatbot Generative Pre-trained Transformers has taken a great leap forward.

It doesn’t take a great deal of imagination to see how these powerful adaptations of this technology can enter almost every aspect of our lives and in our businesses, taking many tedious tasks out of our hands, but at the same time threatening many jobs and livelihoods.

The speed of these developments seems amazing to those of us just becoming aware of it, though in reality it’s probably taken years to get to this stage. You can see that if this technology can be harnessed for the good then its potential is enormous, but for those who warn of its dangers perhaps know far more than us.

It would seem though, that if something like this has been invented (or discovered), rather like nuclear weapons, you can’t uninvent it. Humanity must find a way to control it because the tech minds’ intense curiosity will inevitably continue to develop it, and its potential economic benefits to the tech giants and businesses generally will almost certainly ensure the race continues.

At its present stage of development, we are told, it is not perfect, whether writing a computer program, a legal contract or a job application. Its reliability is still suspect, human minds will still be needed. But from what we can already see of its capabilities, it won’t be all that long before it achieves greater accuracy and reliability.

Applications

An AI assistant working along with people will speed up everyday tasks, tasks that landlords, agents, legal professionals and accounts need to perform. Writing a business plan, a mortgage application, a tenancy agreement, as well completing an annual budget or tax return. These will be completed in seconds. They will undoubtedly need tweaking by a knowledgeable person, but this will be far quicker than starting from scratch,

Want a report on the local property market, market trends and pricing, buyer and seller behaviour, your tenants’ needs? In future your AI powered assistant will likely produce these reports in seconds, reducing the time to complete complex tasks to a fraction of the time it takes now.

This technology will help you search the internet for the best property deals, write out property listings for your agency, create social media posts, draft responses to letters and tenant emails, and instantly calculate and print out reports on mortgage repayment for you.

AI won’t have a problem writing scripts for your YouTube videos, or answering complex legal  communications with your tenants. 

The technology is not perfect now, but it’s made a great start. You can easily see its potential to save a lot of time on many tasks relating to real estate. It will make some mistakes but it will come up with credible basics that you can build on.

Here is an example using Open AI’s ChatGRP, perhaps a little more advanced that the Google version as it’s based on ChatGPT4 and Microsoft’s investment in Open AI.

Here’s a Shakespearean sonnet that it produced in seconds on the theme of “a landlord’s lot” which actually rhymes:

When I, the landlord, look upon my land,

I see a patchwork quilt of homes and fields,

A tapestry of renters, each a strand

That weaves its way among the grassy yields.

My duty is to tend this living earth,

To watch it prosper and to see it thrive,

To nurture every soul that finds its berth

Within the bounds of what I can contrive.

And yet, though I may try with all my might,

There are those tenants who will not abide

By all the rules I set, and in their spite

They cause me grief and make my spirit chide.

So as I gaze upon my land each day,

I find my lot, like all, is mixed with clay.

And here is a an outline for a business plan for a buy-to-let property investment:

Executive Summary:

The purpose of this business plan is to outline the strategy and objectives of a buy-to-let property investment. The investment will consist of acquiring and managing residential properties for the purpose of generating rental income and long-term capital appreciation. The plan is to target high-growth areas with strong rental demand, and to invest in properties that offer a good balance of rental yield and capital growth potential.

Market Analysis:

The buy-to-let market in [target location] is experiencing high demand due to [insert reasons, such as population growth, job opportunities, etc.]. The rental market is also experiencing steady growth, with rental rates increasing by [insert percentage] over the past [insert time frame]. The area has a shortage of affordable rental properties, which presents a great opportunity for investment.

Investment Strategy:

Our investment strategy is to acquire properties with a minimum yield of [insert percentage] and a potential for capital growth. We will focus on properties that are well-located, well-maintained, and offer good value for money. The properties will be purchased using a combination of equity and debt financing. The rental income will be used to cover the costs of mortgage payments, property management, and maintenance, with any excess cash flow reinvested back into the portfolio.

Marketing and Sales:

Our target market is primarily young professionals, families, and students who are looking for quality rental accommodation. We will advertise our properties through various channels, including online listings, local newspapers, and social media. We will also work with local estate agents to help us find and secure suitable tenants.

Operations and Management:

The properties will be managed by a professional property management company, which will be responsible for day-to-day operations, including maintenance, tenant screening, rent collection, and legal compliance. The management company will be selected based on their reputation, experience, and fees.

Financial Plan:

Our financial plan is to achieve a minimum return on investment of [insert percentage] per annum. This will be achieved through a combination of rental income and capital appreciation. We plan to invest [insert amount] in the first year, with an annual investment of [insert amount] thereafter. We project a net income of [insert amount] in the first year, with a projected annual growth rate of [insert percentage]. We plan to hold the properties for a minimum of five years, with the option to sell if the market conditions are favourable.

Conclusion:

Our buy-to-let property investment strategy aims to create long-term wealth through rental income and capital appreciation. We believe that the high-demand rental market in [target location] presents a great opportunity for investment. Our investment strategy is to focus on acquiring properties with strong rental yields and potential for capital growth. With careful planning and management, we believe that our investment will achieve our desired returns and provide a solid foundation for long-term financial security.

This technology is here to stay, and is likely to revolutionise many industries, including real estate management.

View Full Article: Artificial Intelligence and the landlord’s lot…

Sadiq and Gen Rent demand putting the boot into private landlords

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The Mayor of London, Sadiq Khan, and Generation Rent have smeared private landlords in a demand for an immediate Government crackdown on those who provide homes for tenants on housing benefit.

Mr Khan says it is ‘a scandal’

View Full Article: Sadiq and Gen Rent demand putting the boot into private landlords

NRLA urges English Ministers to learn from ‘car crash’ renting reforms in Wales

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NRLA boss Ben Beadle has urged the government to learn from the “awful implementation” of Renting Homes Wales which he labelled a “car crash of epic proportions”.

Speaking on The Guild of Property Professionals’ The Home Stretch podcast, Beadle said it could help direct England’s rental reforms as senior judges were very concerned that possession orders had increased by 505% in Wales since the complex Renting Homes Act was introduced.

“I know the government are keen to crack on with rental reform but if the end product is a worsening of supply and a crisis of confidence – as you’ll need a hearing for every possible case under the new regime and courts need dramatic investment – the courts need to be ready.”

Beadle said the government’s recent announcement to include tenancy clauses banning anti-social behaviour and allowing landlords to give two weeks’ notice – was positive and he hoped that the NRLA’s concerns about student tenancies had landed following meetings with ministers.

Warped view

However, a warped view that those with an asset were “a filthy rich Dickensian villain with bags of cash” remained.

He added: “Decisions have been made to cool the market which have worked superbly as no one wants to invest and people want to exit.”

Beadle (pictured) said the sector was getting a kicking and although some elements needed repair, it hadn’t been helped by the government “taxing the pants off it and vilifying people who provide housing”.

While confidence was low and the NRLA’s members had suggested there could be the biggest level of disinvestment in a decade, he remained optimistic.

“I think landlords can deal with a lot of this stuff that’s coming down the track. Whether they will want to is up to them.”

View Full Article: NRLA urges English Ministers to learn from ‘car crash’ renting reforms in Wales

Meet Mark Alexander and Smith (Barrister-At-Law) – Baker Street Property Meet Wednesday 26th April

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Property118 Founder, Mark Alexander and Hon. Legal Counsel for Property118, Mark Smith, Head of Chambers at Cotswold Barristers, will be presenting in person an overview of several landlord tax strategies at the Baker Street Property Meet this Wednesday.

Are you looking for ways to structure your property business in the most tax-efficient way to minimise tax liabilities and maximise profits?

View Full Article: Meet Mark Alexander and Smith (Barrister-At-Law) – Baker Street Property Meet Wednesday 26th April

Will you? Two thirds of landlords to sell up if forced to upgrade EPCs

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Two-thirds of private landlords might sell up if they are forced to make EPC upgrades, new research finds.

The Mortgage Advice Bureau says 59% would consider selling their property due to not being able to afford the changes needed to meet the minimum level.

With an expected deadline of 2028 for landlords to retrofit their properties to a minimum of an EPC C rating, a lack of clarity regarding available help has left many anxious about how they will afford these changes.

The company’s survey of 500 landlords found that 25% said it was likely they wouldn’t be able to afford the changes, while 34% said it was quite likely they would sell their property instead of upgrading it.

Meanwhile, 30% plan to pass on the potential upgrade bill to tenants, and the same number reported that they had already passed on bills for other upgrades.

Of those landlords who are planning green updates, 26% want to install a smart meter to help hit a grade C, 25% would install LED lighting, 22% would consider installing a new modern boiler, and 20% would consider installing more insulation.

Mortgage Advice Bureau says there has been little in the way of policies, announcements, or clarity from the government, leaving landlords confused about what upgrades will help.

Deputy CEO Ben Thompson (pictured) adds: “Even if – as rumoured recently – the government delay the proposed deadline to 2028 for all rental properties, it isn’t long to find the money needed for the upgrades.

“This is especially challenging when considering the recent economic climate, which has seen mortgage rates increase and the cost of everyday items go up and up. There clearly needs to be more advice, guidance, and help for landlords.”

Read more: Claiming EPCs will cost £1000s to upgrade from D to C ‘inaccurate’ says expert

View Full Article: Will you? Two thirds of landlords to sell up if forced to upgrade EPCs

Service charge – do I have to pay?

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Hello, I own my leasehold flat in a block of 14 apartments. The management company has hiked the service charge from £2,500 to £6,500 pa.

There is some work to be done on the garden due to land slip but we’ve had no section 20 notice.

View Full Article: Service charge – do I have to pay?

Daily Telegraph wants to talk to student landlords

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Are you a landlord who rents to students or used to rent out to students? Then, Alexa Phillips, the personal finance reporter for the Telegraph would like to speak with you.

Alexa would like to talk to Property118 readers about:

• What are the challenges facing landlords renting to students?

View Full Article: Daily Telegraph wants to talk to student landlords

MAYOR: ‘Landlords taking billions in rent for non-decent homes funded by benefits’

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The Mayor of London has accused private landlords across the UK of taking rent worth £9 billion for homes that are ‘non decent’, £1.6 billion of which is paid for via housing benefit.

The figure is highlighted as, this morning, Sadiq Khan reveals his PRS research generated in partnership with campaigning group Generation Rent, covering not just the capital but other areas of the UK too.

Both have used strong language in their announcement. Khan says the situation is a ‘scandal’ while Dan Wilson Craw, Acting Director of Generation Rent says it is an ‘outrage’.

Their research is based on the Government’s existing definition of a ‘non decent home’ which includes properties that pose a risk to residents’ health or life, are in a bad state of repair, are cold or lack modern facilities. 

Housing benefit

The analysis reveals London has the highest ‘non decent’ rent spend, with landlords receiving £3.5bn in rent, £500m of which comes from housing benefit, every year from around 180,000 privately rented, non-decent homes in London. 

The second worst-affected region is Yorkshire and the Humber, where landlords are receiving nearly £1bn in rent, including around £130m a year in housing benefit, from around 160,000 privately rented, non-decent properties.

Meanwhile, private landlords in the South West are accumulating around £870m in rent, with more than £160m of this coming from housing benefit through letting sub-standard homes.

Khan says: “We are building a record number of new affordable homes in London, but we need to see national action to support renters. It is a scandal that some private landlords are profiting from letting sub-standard housing that is unfit for 21st century living.”

Craw (pictured) adds: “It is an outrage that not only can private landlords provide worse accommodation than social landlords, but they get paid more for it.”

The Government is due to bring in a specific and mandatory Decent Homes Standard for the PRS when its reform proposals become law, probably early next year.

View Full Article: MAYOR: ‘Landlords taking billions in rent for non-decent homes funded by benefits’

Short term/holiday lets?

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Hello, The rent from services like AirBnB are far higher than regular rentals. I estimated I’d only need to have my property occupied for around 1/3 of the year to make the same rent that I’d get for longer term rents.

View Full Article: Short term/holiday lets?