AÏ Banks Property Management represents an innovative proptech enterprise dedicated to uniting landlords and tenants through the integration of artificial intelligence within the conventional property management framework. By safeguarding both property investors and renters, AÏ Banks fosters growth in the real estate sector by enhancing property worth. The company employs a forward-thinking bank leasing structure and oversees more than 10,000 units across the United States, utilizing both human expertise and advanced technology.
The relationship between landlords and tenants has historically been contentious, largely due to the power imbalance inherent in rental agreements. According to the National Institute of Health, during the pandemic, property owners faced a staggering financial burden, with estimated rent arrears reaching $57 billion. In 2020, 9% of landlords received less than half of their expected rent, a situation further worsened for smaller landlords and those from minority backgrounds. This predicament not only hindered landlords’ ability to uphold properties and maintain renters’ standards of living but also compromised their capacity to meet mortgage obligations and pursue further investments.
The pandemic resulted in significant financial unrest, affecting both tenants and property owners alike. By 2020, a few months of missed payments disrupted the traditional rental landscape for nearly all parties involved. The precariousness of the rental market, highlighted by Rocky Morocco, founder of AÏ Banks, underscores the gravity of the situation. “The difficulties we endured during the pandemic were entirely avoidable; the moment a tenant signs a lease, it could be secured, insured, and guaranteed so that no one has to suffer losses.”
Michael Vogrin, AÏ Banks’ inaugural landlord client, has witnessed the vulnerabilities of the system firsthand. “In this entire situation, both tenants and property owners face significant losses. I’ve gone through the foreclosure of two properties, and it’s an agonizing experience. Not only do residents lose their homes, but foreclosures also diminish the overall value of the neighborhood. Unfortunately, there aren’t any alternatives. If tenants fail to pay rent, that leaves me unable to meet my mortgage obligations.” Contrary to common belief, nearly half of the rental properties in the US are owned by individual landlords, or “mom-and-pop” owners. While larger corporations can absorb rental arrears, smaller landlords allocate a substantial portion of their earnings to upkeep, mortgages, and taxes, creating an even tougher environment when landlords and tenants are pitted against one another.
Property management often adds unnecessary stress for landlords, who are pressured to respond to tenant concerns and maintain properties with minimal assistance. AÏ Banks alleviates the so-called struggle for power between landlords and tenants through their advanced AI-driven property management solution. Their approach reevaluates property management, slashing labor expenses without imposing additional costs on either side. Their framework automates daily management functions using AI and various technologies like smart doorbells, energy-saving devices, and other home automation systems. “This is AI complementing human efforts,” Rocky elaborates.
By collaborating with an AI-powered property management model, AÏ Banks levels the playing field for both landlords and residents. The company’s system, alongside its property management intermediaries, helps landlords save money while improving their rental income through guaranteed rent payments. Rocky’s discovery of this bank leasing concept, inspired by his parents’ experiences from the 1980s, reinforces the promise of reliable monthly payments, regardless of whether tenants face temporary challenges with rent.
“We offer an insurance product where we lease your properties to renters. Once they agree to a lease with us, we report their rental payments to credit bureaus and provide financing options for them to buy homes within their community,” Rocky describes. As tenants enhance their credit ratings via the company’s framework, they transition from renting to home ownership, while landlords’ properties remain consistently occupied and well-maintained, significantly enhancing property values throughout neighborhoods and benefiting landlords’ portfolios.
The need for landlords and tenants to engage directly in daily operations is greatly diminished, as tenant interactions are entirely mediated through the AI infrastructure. Committed to creating value, AÏ Banks aims to stabilize fragile economic systems by rejuvenating communities with every door they help open. As affirmed by Michael Vogrin, “In this model, everyone benefits.”
