How Renter Preferences and Tech Innovations Are Reshaping Multifamily Property Management

Key Takeaways

• To navigate today's increasingly complex rental market, property managers should work to:

  • Understand Renter Expectations: Track behaviors and "leasing TLC" to influence property choice.

  • Prioritize Experience over Concessions: Focus on service; happy residents are 30% more likely to renew.

  • Improve Maintenance Experiences: Use digital portals to create high-satisfaction, low-effort experiences.

  • Integrate Consumer-Grade Tech: Provide mobile-first tools for rent, work orders, and socializing.

  • Leverage AI for Efficiency: Use AI for instant inquiry responses and personalized walkthrough data.

  • Offer Financial Flexibility: Consider security deposit alternatives and flexible rent payments.

As renter preferences continue to evolve, property managers must find ways to keep pace and remain competitive, especially with a significant influx of new apartment homes entering the market. The key to success lies in prioritizing resident experiences and offering innovative, modern solutions.

These insights come from a conversation on the Rooms with Ronald podcast, where Steven Beringer, VP of Strategy at AppFolio, discussed findings from the 2024 Renter Preferences Report, a vital resource for tracking renter behaviors and priorities.

Key Strategies for Property Managers

Beringer outlined a strategic roadmap for property managers navigating today’s increasingly complex rental market:

1. Understand Renter Preferences and Expectations

With nearly half a million new apartment homes expected annually through 2025, property managers must deeply understand the resident experience.

Key questions to ask:

• Why are renters moving?

• What services are attracting them to units?

• How do they view their relationship with their property manager?

• How do their maintenance experiences affect their choices?

Quote: "...the Renter Preferences Report shows us that the relationship [residents] have through that leasing process — and the TLC that’s given in that process — can materially change their perspective on choosing a place."

— Steven Beringer, AppFolio

2. Prioritize Positive Experiences Over Concessions

While concessions are at an all-time high, relying on financial incentives alone is not a sustainable strategy and can sometimes correlate with poor customer service.

• Long-Term Success: Maintaining a positive relationship with residents is key to long-term success.

• Renewal Impact: Residents who are satisfied with their property management experience are 30% more likely to renew their lease.

• Competitive Edge: Property managers should strive to provide differentiated experiences through unit quality, buildings, and amenities, rather than winning solely on price cuts.

3. Focus on Improving Maintenance Experiences

The report revealed high satisfaction with maintenance, with 86% of renters likely to recommend their property management company based on this experience.

This satisfaction is driven by low-effort experiences where technology streamlines the process for both residents and staff:

• Digital Tools for Residents: Using resident portals for communication, submitting requests, and scheduling appointments.

• Tech for Staff/Vendors: Utilizing technology to manage W2s, track jobs, and automate make-ready boards.

4. Integrate Consumer-Grade Technology

Technology is no longer a luxury but an expectation for modern renters. Residents demand swift, tech-savvy interactions.

Consumer-Grade Platforms are essential, allowing residents to:

• Pay rent

• Submit work orders

• Schedule maintenance

• Socialize with neighbors

• Access valuable information (e.g., moving checklists)

5. Leverage Artificial Intelligence (AI) to Do the Heavy Lifting

AI should be viewed as a tool to augment, not replace, property management jobs.

• Leasing Efficiency: Use AI to provide real-time responses to tenant inquiries.

• Personalization: AI can research and summarize data on potential renters minutes before a walkthrough, enabling a personalized experience.

• Operational Ease: AI can be integrated for simple, verbal commands (e.g., "Add a guest card").

6. Provide Flexible Rent Payments and Security Deposit Alternatives

The demand for flexible rent payments and security deposit alternatives nearly doubled year-over-year.

• Financial Flexibility: Catering to renters' financial health is becoming a key differentiator.

• Younger Renter Preference: Younger renters expect convenient, tech-driven options (like online payments), rejecting traditional methods like paper checks.

How to Select the Right Property Management Technology

Implementing new technology requires a thoughtful approach to ensure success:

1. Involve the Entire Team in the Selection Process

• Gather Input: Get feedback from the people who will be using the platforms every day (e.g., leasing professionals for leasing software).

• Increase Adoption: "If you make the selection of software a group and team effort, it’s more likely to succeed."

2. Be Mindful of the Timing and Speed of Implementation

• Avoid Tech Fatigue: Do not overload staff with too many new tools at once, which can spread resources too thin and lead to poor results.

• Thoughtful Integration: Provide adequate support during implementation to ensure successful adoption and improve both resident satisfaction and operational efficiency.