Smart technology and effective communication are critical for attracting and retaining renters in today’s competitive multifamily market, according to a new survey from AppFolio.
The 2024 AppFolio Property Manager Renter Preferences Report of over 2,100 renters surveyed in May uncovered key insights to renter behaviors and demographics.
Some of the key findings included:
- 80% of respondents said they are satisfied or very satisfied with their property managers, which matches last year’s survey results;
- 46% of respondents said they intend on renewing their current leases, with about 1 in 4 citing the inability to buy a home;
- The top reasons for renewing a lease included the location, 60%; the unit, 54%; and the high cost of moving, 46%;
- Renters who are satisfied with communication methods at their community are 25% less likely to plan a move and nearly four times more likely to recommend their property managers than those who are unsatisfied; and
- Renters who are satisfied with the maintenance teams are 25% less likely to say they are planning a move and nearly three times more likely to recommend their property managers.
The report outlined the importance of technology solutions, especially for younger residents as Gen Z is expected to become the largest demographic of renters by 2030.
Over three-quarters of Gen Z and millennial respondents—81% and 77%, respectively—reported the importance of an online resident portal or mobile app compared with 52% of baby boomers. Two-thirds of Gen Z renters and 60% of millennials also want smart-home technology, such as Wi-Fi-enabled thermostats, lights, and locks, while only 38% of boomers cited these features.
When it comes to paying rent, 90% of Gen Z and 87% of millennial renters said they consider online payment options important or very important compared with 67% of baby boomers. In addition, other financial services are important to renters, such as renter rewards programs for 76% of Gen Z and 71% of millennial renters and rent reporting programs for 76% of Gen Z and 75% of millennial renters.
According to the report, property managers must also have a strong online presence.
First and foremost, 95% of respondents cited a clear and transparent apartment listing as the most important factor they consider when deciding on a rental. Over three-quarters of renters, 76%, also reported that they expect to hear back about a listing within 24 hours of contacting the owner or property manager, while 27% said they expect a response within a few hours.
In addition, the majority of survey respondents, 88%, said a property manager’s reputation on review sites is important or very important when evaluating a new apartment. Other considerations that can make or break a prospective resident’s rental decision include the ease of scheduling a tour and the experience of meeting the property management staff.
“This report highlights the undeniable impact that technology has in meeting renter expectations,” said Stacy Holden, senior director and industry principal at AppFolio. “Bottom line, great resident experiences today are all about timely and clear communication while having access to the information you need at your fingertips.”
She noted that by leveraging the latest innovations, such as AI-powered leasing solutions, smart-home technology, and intuitive online resident portfolios, property managers can create win-win scenarios.
“These tools not only maximize convenience and satisfaction for all their residents but also increase their operational efficiency, enabling them to thrive in current market conditions,” she said.
