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:

  1. Technology-enabled lifestyle
  2. Management communication/responsiveness
  3. Physical amenities
  4. Community appearance/cleanliness
  5. Convenience-based amenities
  6. Relationship with on-site staff
  7. A sense of community

Mirroring some of these expectations, respondent noted the below as top challenges for this year:

  1. Keeping property visually appealing and modernized
  2. Managing repairs and maintenance
  3. Communicating effectively with residents
  4. Providing good customer service
  5. Measuring resident satisfaction
  6. Facilitating smooth move in and out
  7. Understanding the needs of residents
  8. Outdated or insufficient property technology
  9. Hosting resident events
  10. 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%.