Published on November 4th, 2024
By Brittany Benz

As renter preferences continue to evolve, property managers face a critical question: How can they keep pace with these shifting demands while staying competitive? 

With an influx of new apartment homes coming online, the answer lies in prioritizing resident experiences and offering innovative solutions that address the changing landscape.

On an episode of the Rooms with Ronald podcast hosted by Ronald Harrington, Steven Beringer, VP of Strategy at AppFolio, shared valuable insights from the 2024 Renter Preferences Report that tracks renter behaviors and priorities. Drawing from the report, Beringer outlined a strategic roadmap for property managers navigating today’s increasingly complex rental market.

Keep reading to get highlights from their conversation, including tips for enhancing the resident experience and the transformative role of technology in multifamily leasing.

Understand Renter Preferences and Expectations

With nearly half a million new apartment homes expected to be delivered annually through 2025, property managers need to prioritize the resident experience to keep up with the influx. 

This includes asking questions, such as:

• 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?

According to Beringer, “…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.”

As vacancy rates fluctuate, property managers need insights like these to remain competitive, while offering amenities and experiences that go beyond monetary concessions.

Prioritize Positive Experiences Over Concessions

According to Moody’s Analytics, concessions are at an all-time high. While offering financial incentives can fill vacant units, relying on concessions alone isn’t a sustainable strategy.

In fact, high concessions can correlate with poor customer service. One-time price reductions might attract new renters, but maintaining a positive relationship with residents is key to long-term success.

Data from AppFolio’s report confirms that residents who are satisfied with their property management experience are 30% more likely to renew their lease.

Beringer states, “Property managers need to continually be thinking about how to be competitive because we don’t always want to win on concessions alone…We want to be able to provide differentiated experiences both in terms of the units and buildings themselves and the amenities that are provided.”

Focus on Improving Maintenance Experiences

One of the most surprising findings from the Renter Preferences Report was the high level of satisfaction renters have with maintenance. The survey found that 86% of renters were likely to recommend their property management company because they were satisfied with maintenance.

Beringer attributes this satisfaction to low-effort experiences, where technology streamlines the process for both residents and maintenance staff. From the moment the resident submits the request to scheduling the service appointment to getting the problem resolved, how easy was the process for them to navigate? By using digital tools to help with tasks like intake or a resident portal for communications, property managers can keep residents satisfied.

Not to mention, technology can play an integral role in managing vendors. Whether it’s staying on top of W2s, tracking jobs, or automating make-ready boards, tech-forward maintenance solutions can simplify processes and contribute to higher satisfaction scores.

Integrate Consumer-Grade Technology

If we can learn anything from the maintenance satisfaction ratings, it’s that technology has the power to transform the relationship between manager and renter. These days, technology has become an expectation for renters.

Residents now demand swift, tech-savvy interactions with property managers. That means having access to technology platforms where residents can:

• Pay rent
• Submit work orders
• Schedule maintenance
• Socialize with neighbors
• Get valuable information, such as moving checklists

This is why it’s so important to go beyond “raw technology” that managers typically use and integrate consumer-grade technology into property management.

Leverage Artificial Intelligence (AI) to Do the Heavy Lifting

When it comes to AI, Beringer sees it as a tool to augment — but not replace — property management jobs. One way you can use AI to make your job easier includes enhancing processes like leasing by providing real-time responses to tenant inquiries.

You can also utilize AI to personalize relationships. Let’s say you have a walkthrough with a potential renter in a few minutes. AI technology can research that person and summarize the data for you right in the moment. That way, you can make that walkthrough personalized, while letting AI do some of the heavy lifting.

As another example, Beringer references AppFolio’s early integration of AI in its technology. “You can speak into your phone and say, ‘Add a guest card.’ This is the name, this is the phone number — and it will literally just say it’s done…AppFolio has that literally live in customer’s hands today.” 

With AI technology advancing rapidly, it will only continue to make leasing and property management more efficient and personal.

Provide Flexible Rent Payments and Security Deposit Alternatives

One particularly pressing trend is the growing demand for flexible rent payments and security deposit alternatives. AppFolio’s report found that the demand for these services nearly doubled year-over-year, reflecting a growing need for financial flexibility among renters. 

This shift highlights the importance of offering services that cater to renters’ financial health, which Beringer believes will become a key differentiator for property managers.

Younger renters are particularly unlikely to accept traditional payment methods, such as paper checks. Instead, they expect convenient, tech-driven options, like online payments, that align with their fast-paced, mobile-first lifestyles.

How to Select the Right Property Management Technology

If done correctly, property management technology has the potential to improve satisfaction and performance across the board. However, if it’s not, it can have an adverse effect, resulting in negative experiences. Beringer offers two valuable pieces of advice for property managers looking to implement new technology solutions.

Involve the Entire Team in the Selection Process

Despite the difficulties of managing multiple opinions and perspectives, it’s worth trying to get everyone on the same page before you select technology. Gathering input from the people who will be using these platforms every day is key to driving adoption.

Beringer said, “I personally have experienced that if you make the selection of software a group and team effort, it’s more likely to succeed.”

Ask yourself, “Who is this technology going to affect the most?” For example, if you’re looking at leasing software, you need input from your leasing professionals because they’re going to become your subject matter experts.

Be Mindful of the Timing and Speed of Implementation 

Tech fatigue is a real issue. With so many new software products on the market, companies need to be careful not to overload staff with too many new tools at once. 

Beringer noted, “I think [property managers] are trying too many things, and then they’re spreading [themselves] too thin. They’re not getting real results, and it’s bad data where they’re making some of their decisions.”

By integrating technology thoughtfully and providing adequate support during implementation, Beringer believes property managers can ensure successful adoption, and improve both resident satisfaction and operational efficiency.

While the data from the 2024 Renter Preferences Report is incredibly valuable in understanding how technology is reshaping the multifamily housing industry, there are so many more insights to uncover. Read the full report to get more information about how you can exceed renter expectations and stand out from the competition.