A new report from Zego, a global payments company and property management automation platform, highlights the importance of renter retention and the disconnect that can happen between property managers and residents.
The 2025 Resident Experience Management Report, produced in partnership with SA Marketing Insights, draws from surveys of over 1,000 multifamily renters and 600 property managers to provide intel on boosting retention and satisfaction.
According to the report, property managers remain optimistic about retention despite missing their goals. Since 2021, three times as many property managers have set retention targets of 70% or higher; however, the average retention rate falls slightly below the industry benchmark of 63%.
But the good news with those with high retention goals is that 58% of renters reported that they plan to renew their leases, slightly down from 59% last year. Only 15% of renters said they have firm plans to move, leaving 23% undecided. This provides property managers an opportunity to convert the undecided and meet their goals by doubling down on strategies such as enhancing the resident experience, improving communication, or offering attractive incentives, noted the report.
“Resident retention is no longer just a cost-saving strategy; it’s a competitive advantage,” said Zego president and general manager Eric Ives. “Our latest research shows that while amenities matter, it’s the resident experience—from move-in to maintenance—that determines whether renters stay or go.”
Other key findings from the 2025 report include:
- The longer a resident lives in their apartment, the more likely they are to renew. For renters who have lived there less than a year, they reported a 52% likelihood of renewing their lease. However, that percentage ticks up to 59% for those residing in their apartment for three to five years and reaches 64% for those who have been in their homes for over five years.
- Property managers are not on the same page when it comes to renters’ reasons for moving out. Renters cited rent that is too expensive, poor maintenance service, safety concerns, poor property upkeep, and poor management community and responsiveness as their top reasons for not renewing. However, while property managers did acknowledge rent being too expensive, they also cited life changes, purchasing a home, moving to a more desirable apartment community, and moving to a more desirable location in the same city as the main reasons for residents not choosing to renew their leases. “While property managers to seem to understand that price sensitivity is a main concern, they also underestimate how important maintenance, safety concerns, and property upkeep are to renters. These things rank at the top of the list for renters and at the very bottom for property managers,” noted the report.
- Two-thirds of property managers said their main hurdle is understanding and anticipating the needs of residents, followed by keeping the property visually appealing and modernized, managing disputes between residents, and outdated or insufficient proptech.
- The majority of renter respondents said their expectations of their apartment community have remained the same over the last year. However, 20% indicated their expectations have increased over the past year versus 14% in 2024.
- Property managers reported they also feel the pressure of renters’ increasing expectations. Over two-thirds, 69%, said they think resident expectations have increased, which is somewhat lower than the response in 2024.
- When it comes to the most important aspects of the resident experience, there’s also a disconnect between renters and property managers. Renters cited maintenance repairs, security, and community appearance and cleanliness as the top three priorities. While property managers also ranked security and maintenance repairs in what they think matters most to renters, technology-enabled lifestyle was cited as the top priority.
