Overall satisfaction with property managers, flexibility in payment methods, and technology offerings can be deciding factors for renters looking to renew their leases, according to new data from AppFolio.
After surveying 1,000 U.S. renters 18 and older between Feb. 23 and March 1, AppFolio found 33% of leases are expiring in the next six months and 56% are expiring in the next 12 months, with about 30% of the respondents saying they are actively searching for a new rental. According to the cloud-based technology platform, this period will likely see increased property management competition.
AppFolio’s “2023 Property Manager Renter Preferences Report” provides insights into how property managers need to better understand renters’ expectations in order to attract and retain them.
While 66% of renters reported being satisfied with their property manager, up from 55% in 2022, only half said they plan to renew their leases this year.
Of the satisfied renters, 57% reported that the property manager is the main reason they are considering renewing their lease. In addition, 68% of renters said a property manager’s reputation on review sites also is important when evaluating a new rental, which is double that of recommendations from family and friends.
The survey also found that the top three reasons for unsatisfied renters to consider a move are a better apartment or home at 63%, lower rent at 49%, and a better property manager at 45%.
“With the rental industry evolving, property managers need to take a critical look at their offerings to ensure they are competitive and keep pace with resident expectations,” said Stacy Holden, senior director and industry principal at AppFolio. “Today’s renter preferences will help shape the housing of tomorrow, so it’s important for property managers to uplevel their service now through tech and other thoughtful offerings. This will help rental teams retain current residents and entice others.”
Another key factor for renters is paying rent online. More than half of renters surveyed, 60%, said online rent payments are important or very important when evaluating a new rental. For those renters who currently can’t pay online, 58% would like the option. In addition, the survey found that younger demographics—Gen Z at 65% and millennials at 61%—are more open to online payments compared with 40% of Gen X and 46% of baby boomers.
Younger renters also are more demanding when it comes to property management. Only 56% of Gen Z respondents reported being satisfied with their property manager, compared with 64% of millennials, 66% of Gen X, and 75% of baby boomers. In addition, the survey found that only one-third of Gen Z renters are likely to renew their leases compared with 44% of millennials, 53% of Gen X, and 67% of baby boomers.
