AI enters the rental conversation 

Artificial intelligence is beginning to reshape the way New Zealand tenants and landlords communicate, with new research from Bayleys Real Estate revealing growing use of AI tools across residential tenancy interactions – and a corresponding shift in the complexity, tone and nature of communication emerging within the sector.

The research, based on a nationwide survey of Bayleys’ residential property managers responsible for around 13,000 rental homes, found that almost half of the respondents have noticed tenants frequently using AI tools when dealing with property managers, while a further 39 percent observed occasional use.

The report AI Enters the Rental Conversation explores how tools such as ChatGPT are influencing communication between tenants, landlords and property managers, as increasingly accessible technology changes how people seek advice, frame requests, and interpret tenancy rights.

Bayleys Insights, Data & Consulting analyst, Samantha Lee, one of the report’s authors, says the findings point to a broader shift already underway across the residential property sector.

“AI tools can help tenants organise their thoughts, access information and engage more confidently on tenancy matters, which can absolutely improve accessibility and communication,” Lee says.

“The challenge is that these tools are not always accurate. They can produce very convincing content that might not actually reflect the facts of a tenancy, the legal context, or the practical realities of a situation.”

According to the research, 70 percent of property managers identified misinformation as the biggest challenge associated with AI-assisted communication, while 43 percent said this was contributing towards problems taking longer to solve, and 35 percent believed routine issues were becoming more likely to escalate into disputes.

Examples cited by respondents included routine maintenance requests being immediately escalated into formal Notices to Fix, tenancy rights being incorrectly interpreted and AI-generated responses presenting legal or procedural references without sufficient context.

Bayleys Southern Lakes Property Management chief executive officer, Ashley Giles, says the technology is already changing the standard of communication expected across the tenancy relationship.

“We’re increasingly seeing issues that previously would have been resolved through a quick phone call or text message arrive instead as long, highly formalised emails generated with the assistance of AI,” he says.

“The tone can become overly legalistic very early in the process, even when the underlying issue itself is relatively straightforward.”

Giles says the biggest risk is not necessarily the technology itself, but the confidence with which inaccurate information can be presented and acted upon.

“AI doesn’t encapsulate the nuanced person-to-person business that is property management. Context matters enormously in this industry, and these tools can miss that entirely.

“My team recently tested the same tenancy-related question across four different AI engines and received four materially different answers. That exercise highlights why information generated through these systems can’t simply be accepted at face value.”

Despite this, Giles says AI also presents significant operational opportunities when used responsibly. Bayleys Property Management received the Real Estate Institute of New Zealand (REINZ) Innovation Award in 2025 for its pioneering use of AI within residential property management operations, and the business is continuing to integrate the technology carefully across its systems.

“We see huge value in AI when it comes to efficiency, administration, and supporting service delivery,” Giles says. “But like any tool, it needs governance, clear policy, and human oversight.”

Bayleys Residential Property Management national director, Will Alexander, says the shift is reinforcing the value of professional property management at a time when tenancy legislation, compliance obligations and tenant expectations are becoming increasingly complex.

“Private landlords are now navigating not only regulatory change, but also AI-generated communications that can appear authoritative regardless of whether they’re accurate,” he says.

“Professional property managers are dealing with tenancy law, documentation and dispute resolution every day. Experience and judgement become incredibly important when communication becomes more formalised and more difficult to interpret.”

Alexander says the research reflects a broader shift already occurring across many service industries, where AI is compressing the gap between access to information and perceived expertise.

“Information is becoming easier to generate,” he says. “Good judgement isn’t.”

“As communication becomes faster, more detailed and formalised, the value sits increasingly with people who can apply context, judgement and practical experience to real-world situations. That’s where professional property management becomes all the more valuable.”