The Rent Roll with Jay Parsons

Episode 61: Tyler Christiansen | A.I. And Rental Housing
Date: November 25, 2025
Host: Jay Parsons
Guest: Tyler Christiansen (CEO, Funnel)

Episode Overview

This episode explores the real role of artificial intelligence (AI) in rental housing—cutting through the noise, hype, and skepticism. Host Jay Parsons talks with Funnel CEO Tyler Christiansen about where AI stands today in multifamily/property management, where it’s headed, and the real-world impacts on operations, staffing, and renter experiences. With key insights from recent industry conferences and practical examples from some of the largest operators, they discuss what’s real, what’s overblown, and what innovations are around the corner.

Key Discussion Points & Insights

1. Debunking the “AI is Killing Jobs” Narrative

[05:05–13:40]

• Jay opens by addressing current headlines blaming AI for job losses and slower job growth, especially among younger generations.
• Cites recent comments by Angela Kleeman (CEO of Essex), emphasizing that job reductions are more about efficiency in a soft macro environment than direct AI displacement.

Notable Quote:

“I don’t think from what we’re seeing that they’re AI-driven job losses. Businesses are focused on efficiency... but the adoption level is low because the ROI is still unclear.”
— Angela Kleeman, via Jay Parsons [06:57]

Jay’s Reflection:

• AI is in an experimentation phase; adoption lags because of uncertain returns.
• Historically, major technological shifts (industrial, computer age, offshoring) led to economic adjustments, not collapse.

2. AI’s Current Role in Rental Housing Operations

[26:56–32:55]

• Tyler’s multifamily background: grew up in an industry family, first at Entrada, then at LRO and Funnel.
• Funnel’s evolution: started as Nesteo (“Pinterest for apartment hunting” in NYC), pivoted to CRM and AI-focused platform serving over 1.5 million units.
• Majority of rental communities now deploy some form of AI—mostly chatbots or automated lead response.

Notable Quote:

“Most folks ... have AI turned on. ... The majority of those have some sort of AI at the front door answering the pet policy questions.”
— Tyler Christiansen [36:48]

Industry Reality:

• There’s widespread AI experimentation, but most companies are not seeing dramatic workforce reduction.
• AI is more likely to be a consumer experience enhancer than a job eliminator at this stage.

3. The Hype Cycle vs. Real Results

[33:28–38:31]

• Tyler explains the “Gartner Hype Cycle”: buzz and overpromise lead to a trough of disappointment before real, sustained progress.
• Early AI implementations in multifamily haven’t consistently achieved big cost reductions.
• Centralization—aggregating service roles across properties—unlocks major AI-driven efficiencies (e.g., Camden, Essex: no assistant managers, consolidated leasing offices).

Notable Quote:

"The hopes of ... running properties without humans has not materialized ... but no one is turning off their AI because it is a better consumer experience to get your questions answered at 2:00am."
— Tyler Christiansen [38:31]

4. AI + Centralization: Real Staffing Impacts

[39:07–41:59]

• Real cost savings and headcount reductions are happening at companies that combine centralization and AI.
• Example: Camden credited $4M/year in savings to these efforts.
• Voice AI can now successfully handle 70% of phone calls without human help (“containment rate”), but headcount reductions typically happen through attrition, not firings.

Notable Quote:

"We’re seeing 70% of our calls now ... the AI has just gotten that good. ... When you do that ... and have 100% of your assistant community manager roles centralized, that's when the cost savings opportunities come in."
— Tyler Christiansen [40:30]

5. AI’s Next Frontiers in Rental Housing

[43:20–47:12]

• Voice AI is improving rapidly, now blocking out background noise and supporting 37 languages.
• "Agentic" AI: Next-gen applications will not just answer questions but automate complete workflows—e.g., handling mid-lease changes (adding a pet, roommate swaps), prepping and sending addenda, possibly auto-signing.
• The biggest wins will come from automating routine back-office processes, letting people focus on high-value, personal service.

Notable Quote:

“...Imagine a world in which 20,000 transactions with probably 100,000 individual pieces of communication is just fully handed over to AI. That’s the promise of agentic software.”
— Tyler Christiansen [46:02]

6. Measuring Value: Expense Reduction, NOI, and Experience

[53:54–57:01]

• In multifamily, AI’s ROI is challenging to trace; expense reductions happen fastest with structural changes (centralization) and are often realized via attrition.
• Most property firms prefer predictable, per-unit pricing models over usage-based or “outcome-based” billing, which slows ROI measurement.
• Standalone “widget” solutions are fading—operators now demand broad, integrated platforms.

Notable Quote:

“Most folks have deployed an AI chatbot. Most folks have not reduced headcount ... but they’re not turning them off because it is a better consumer experience.”
— Tyler Christiansen [54:21]

7. PropTech Landscape and Industry Culture Shift

[57:08–61:31]

• Proptech innovation is still vibrant—seen at NMHC OpTech conference—but startups must now integrate, not just offer niche tools.
• Big operators prefer to buy new AI features from existing partners (like CRM providers), not one-off apps.
• "Customer 360" and memory: Next innovations will use AI to personalize communication and remember renter preferences across portfolios.

8. The Future of Funnel

[61:53–63:53]

• Funnel continues to grow as a CRM and automation platform, now adding AI-driven workflows like mid-lease changes, renewals, and centralized support functions.
• Third-party managers (e.g., Greystar, ZRS) are increasingly open to centralization, looking to replicate efficiencies seen at large REITs.
• Vision: A single interface automating away routine site work, freeing staff to focus on customer experience.

Notable Quotes & Moments (with Timestamps)

• “I have a healthy degree of skepticism when people ... talk about AI because everyone wants to assign it way too much credit and blame without really knowing what they’re talking about.”
  — Jay Parsons [05:32]

• “Eventually, AI is going to not be the term that dominates everything because it is not a product. It is a technology like the Internet, like electricity, that permeates many other products.”
  — Tyler Christiansen [33:38]

• “The majority of folks in their first and early implementations of AI have not achieved the results they were hoping for. ... The majority of folks in their first and early implementations have not achieved staff reduction.”
  — Tyler Christiansen [35:02]

• "It’s definitely a retention tool for your best people ... their retention rates ... have nearly doubled ... [and] salaries and compensation have grown 20-30%, but they're keeping those better people."
  — Tyler Christiansen [42:17]

• “The differentiation will still be the humans.”
  — Tyler Christiansen [46:36]

Important Timestamps

• [00:03–10:10] — Jay’s introduction, context of AI hype, and Angela Kleeman’s AI/job displacement perspective.
• [26:56–29:20] — Tyler’s multifamily and tech industry background.
• [29:20–32:55] — Funnel’s origin story and evolution to CRM + AI.
• [33:28–36:32] — The AI hype cycle, early results, cynicism, and centralization.
• [36:48–38:31] — AI adoption in rental housing: current practices and expectations.
• [39:07–41:59] — Centralization + AI: real cost savings and operational model shift.
• [43:20–47:12] — What’s next for AI: agentic software and workflow automation.
• [53:54–57:01] — How to measure AI’s value: expense, NOI, experience.
• [57:08–61:31] — Industry trends, consolidation, and integrating innovation.
• [61:53–63:53] — Funnel’s roadmap, centralization in third-party management.

Takeaways for Operators/Investors/Managers

• Don’t believe the hype (or the doom): AI is improving operations but is not yet eliminating jobs at scale.
• Centralization is key: Real operational savings (and headcount reductions) are unlocked when paired with centralized staffing models.
• Experience matters: AI is currently most valuable in enhancing the renter’s experience and raising employee retention.
• Platforms over point solutions: The industry is shifting to integrated, platform-based tech for efficiency and consumer experience.
• The human edge remains: Even as AI takes over more workflows, human service, and employee differentiation will be crucial.

For more info on Funnel’s platform:
www.funnelleasing.com

Host newsletter:
jparsons.com/newsletter