New online review volume crossed half a million in Q4 2020, and in Q1 2021 review volume continues this upward trajectory. As of Q1 2021, there are 11,284,847 online reviews for the 123,166 properties J Turner Research monitors across multiple review sites and ILSs each month. What does this increase in review volume mean for a property’s business? Is there a measurable connection between online reputation and revenue?
RealPage, in conjunction with J Turner Research, recently announced the results of a nearly three-year, first-of-its-kind study that reveals the measurable impact of online reputation on multifamily rental property outperformance.
According to the study, on average, properties witnessed a 3-basis point premium to market returns for each point a community improved its Online Reputation Assessment score, a metric to measure and benchmark the online reputation of multifamily properties. The ORA statistical model by J Turner Research, designed for property management companies, aggregates and analyzes online ratings and reviews of over 123,000 properties in the U.S. across multiple review sites and ILSs.
The study reviewed historical financial and operational metrics from RealPage, combined with 34 months of ORA data of nearly 6,000 properties across Class A, B, and C assets in every decade since the 1990s, spanning affordable and conventional apartments of all sizes from fewer than 100 units to over 4,000 units in the U.S. market. Researchers identified a correlation between key variables such as raw ORA scores, change in ORA scores, and revenue.
In a recent podcast, Rich Hughes, senior vice president of data science at RealPage, discussed the results of this study. Hughes mentioned that while many factors can affect a community’s reputation, taking the time to maintain or improve your reputation is an incredibly cost-effective way to enhance the property’s bottom line. Hughes emphasized how properties with higher ORA scores close at a higher rate and have better resident retention. To listen to the podcast, visit https://jturner.us/RichHughespodcast.
For almost a decade, J Turner Research has closely monitored the growth of online reviews, review sites, and ILSs in the multifamily industry. The key trends and statistics are compiled in The Mechanics of online Review Sites and ILSs, an unparalleled resource on the state of online reputation in multifamily. The seventh edition of this report will be released later this year. Below is a preview of some of the key data from the report.
The report also will feature key policy shifts among leading review sites such as Google, ApartmentRatings, Yelp, and Facebook, among others.
Key Online Review Statistics as of Q1 2021
- As of Q1 2021, there are 11,284,847 online reviews for the 123,166 properties we monitor across various review sites and ILSs monthly.
- Ninety-three percent of the properties we monitor—113,978—have at least one review. J Turner’s Q1 2021 analysis is based on these 113,978 properties.
- In 2015, we monitored 55,700-plus properties. The number of reviews has grown over four times from 2,741,818 reviews in 2015 to 11,284,847 in Q1 2021.
- With a total market share of 31%, Google is the No. 1 site for multifamily online reviews, followed by ApartmentRatings at 26%, Modern Message at 12%, RentPath at 7%, and Yelp at 5%.
- Sentiment by site: Modern Message has the highest sentiment of all review sites at 4.31 on a scale of 1 to 5, with 5 being the highest. The average sentiment on Google is 3.59.
A Look at the Q1 2021 Data
- Modern Message added an average of 241.16 reviews per property for its clients, followed by ApartmentRatings at 51.68 and Google at 36.16.
- Source of reviews: With regards to the review volume in Q1 2021, Google has the most reviews (39%), followed by Modern Message at 20% and ApartmentRatings at 14%.
- Number of reviews per property: The average number of reviews per property in Q1 2020 was 98.19. In Q1 2021, it was 107.79.
