With nearly 1 million new apartment units projected to be available by 2025 according to the U.S. Census Bureau, competition in the rental market will only continue to intensify. To stay ahead, property managers must be informed about the evolving expectations and the needs of their residents.
Here are topline findings and rental trends from the report to help property managers better understand 鈥� and respond to 鈥� renter preferences in today鈥檚 competitive rental market landscape.
Why renters move (or stay put) in today鈥檚 climate
Renter satisfaction plays a critical role not just in retention, but also in fostering positive word-of-mouth recommendations, which can be invaluable in attracting new renters.
Data shows that recommendations from friends or family are a key consideration for prospective renters when evaluating a new rental. In fact, satisfied renters are 5.5 times more likely to recommend their property management company to others than those who are unsatisfied.
Here are recent findings to keep in mind to drive retention and positively influence the prospective renters鈥� decision-making process:
Top reasons renters decided to move in 2024, in order of prevalence:
- Seeking a better apartment/house
- Seeking lower rent
- Seeking a better community
- Seeking my own place / don鈥檛 want a roommate
- To move closer to family
- Change in job status
- Change in marital / family status
- To move to a more suburban area
- Other
While some motivators are lifestyle-driven, the top three are within the sphere of influence of property management offerings and services.
Top reasons renters decided to renew in 2024, again, in order of volume of survey preference percentages:
- I like the location
- I鈥檓 happy with the unit
- Moving is too expensive
- My rent would be higher if I moved
- I鈥檓 satisfied with my property manager or landlord
- I like the community
- I鈥檓 happy with the amenities
- I鈥檓 unable to purchase a home
- I鈥檓 worried about the economy
Here, six out of nine factors are directly tied to property management-centric elements.
Understanding the factors behind these decisions can help to differentiate your property and retain more renters. With 35% of renters planning to move in the near future, let鈥檚 look at more data-backed insights to help you stand out.
Insights into current renter satisfaction trends with property management, communication, and maintenance
The good news from the report is that 80% of renters are satisfied with their property management companies. However, this leaves 20% who are unsatisfied, presenting an opportunity for property managers to improve their offerings and stand out in a crowded marketplace.
How? Two factors are critical in overall renter satisfaction:
- Communication is key
Poor communication was identified as a major reason why renters choose to move. Renters who found the level of communication from their property management company to be satisfactory are four times more likely to recommend the property to others. Effective communication fosters trust, transparency, and a sense of community鈥攆actors that are increasingly important to today鈥檚 renters. Mobile, cloud-based software, with and texting capabilities can help support property managers in this area.
- Maintenance matters
The survey also found that maintenance quality greatly impacts how renters feel about their living environment as a whole.
Renters who are satisfied with maintenance services are 25% less likely to plan on moving. This is because maintenance affects essential aspects of daily life, including safety, comfort, and quality of life. Promptly can help build long-term satisfaction and improve renter retention.
How satisfied are renters with financial services in 2024?
Another significant insight from the report is the growing importance of financial services offered to renters. This is especially true amongst younger renters, who now make up the largest share of the U.S. renter population. For these renters, financial tools and flexibility are key components of their rental experience.
Examples of desired financial offerings include:
- Online rent payments
- Security deposit alternatives
- Flexible rent
- Renter reward programs
- Rent reporting programs
While renters place a high value on these services, the reality is that many of these options are not widely available. For example, online rent payment options are not offered to 40% of renters, despite being a service that nearly all younger renters expect.
This gap between expectations and availability represents a major opportunity for property managers to enhance the financial experience for their residents with smart property management technology solutions.
Importance of online rent payments across generations of renters:
- 90% Gen Z
- 87% Millennial
- 82% Gen X
- 67% Baby Boomer
- 52% Silent
Why technology is so important moving forward
The AppFolio Renter Preferences Report confirms just how crucial technology is to today鈥檚 renters. An overwhelming 95% of renters surveyed said that technology, such as an online portal or mobile app, is helpful in managing their rental experience.
However, only 60% of renters currently have access to tech savvy tools. Solving this gap is a major opportunity for property management companies today and tomorrow.
What renters expect from property management technology:
- An online portal or mobile app
- Digitized key move-in tasks like signing the lease
- Online payment options
- Utilities, insurance, and deposit facilitation
Great property management technology benefits not only residents but also property managers. Choosing the right software partner helps teams become more efficient, mobile, and nimble.
Take a deeper dive into the report鈥檚 findings
To thrive in a crowded and competitive rental market, you must stay informed about the evolving preferences and expectations of renters.
From communication and maintenance to financial services and technology, the 2024 AppFolio Renter Preferences Report offers data-driven insights into what today鈥檚 renters want most. By understanding and responding to these preferences, your property management team can create a better rental experience that attracts new tenants and keeps current ones satisfied.
For a deeper dive into the latest trends and actionable strategies, including detailed percentages and helpful visuals, check out the full today. Stay ahead of the curve and ensure your property management strategies are aligned with the needs of today鈥檚 renters.