According to the 2023 State of Resident Experience Management Report from Zego, resident turnover costs have remained high at almost $4,000 per resident for the last three years. Focusing on resident retention and preventing these unwanted expenses, 75% of property management companies believe resident expectations have increased even more since last year.
These heightened expectations include better amenities (57%), better community technology (51%), added concierge services (49%), updated or renovated units (44%), increased lease term or payment flexibility (44%), more pet-friendly communities (43%), better unit technology (39%), better service from on-site staff (23%), and more resident events (18%).
Weighing feedback from the over 600 property management companies who participated in the report, the most important aspects of the resident experience for 2023 include:
- Technology-enabled lifestyle
- Management communication/responsiveness
- Physical amenities
- Community appearance/cleanliness
- Convenience-based amenities
- Relationship with on-site staff
- A sense of community
Mirroring some of these expectations, respondent noted the below as top challenges for this year:
- Keeping property visually appealing and modernized
- Managing repairs and maintenance
- Communicating effectively with residents
- Providing good customer service
- Measuring resident satisfaction
- Facilitating smooth move in and out
- Understanding the needs of residents
- Outdated or insufficient property technology
- Hosting resident events
- Staff shortages
Despite new supply coming onto the market, 72% of respondents believe that resident retention will increase, while 24% believe it will stay the same. Current retention rates sit at 56%, down a percentage point from last year’s report, but up 2 percentage points from 2021.
Last year’s report, as well as this year’s, found a correlation between staff turnover and resident turnover. Companies with higher levels of staff turnover also experienced above-average resident turnover. For companies with turnover less than 20%, communities saw a 60% retention rate compared with 54% for companies with a staff turnover greater than 20%.
