Apartmentalize Conference: Are Self-Guided Tours a Fad?

CHICAGO—Apartment operators’ ability to continue to push rents higher in today’s – or any day’s economic environment lately does not cease to amaze many industry observers.

Spikes are continuing, particularly among the urban, professional set of those young and old. Increasing demand and limited supply are reasons, yes, but apartment owners and managers also are pointing to renters’ reduced daily expenses for things such as parking, gas, car payments and automobile insurance and what a difference that makes.

An open discussion among small groups of apartment industry professionals led to insightful, candid commentary about what they are seeing and hearing at the site level among resident needs and behaviors during a session Wednesday at National Apartment Association’s Apartmentalize Conference in Chicago.

Said one operator: “They have no cars, nor do they have a desire to own one. Our parking lots are empty. They walk everywhere, and they are just fine with that. A person’s automobile expenses can total several hundreds of dollars per month, so they just use that on their rent payment.”

Are Self-Guided Tours a Fad

Touring properties has undergone tremendous change in the past 18 month as self-guided and virtual tours dominate showings in some markets. This trend was borne from pandemic restrictions. Some wonder if they are here to stay or more like a fad.

Texas operators suggested a fad, “because once our governor took all of the restrictions off of everything, we quickly got back to normal,” said one from the group of 10 in the discussion group.

Subletting Becoming Mainstream

Short-term living arrangements also continue to gain popularity. One operator said her property is nearly 85 percent occupied by Airbnb guests. Those apartment homes were sublet through third-party companies that rent out large numbers of units in a given building to make them available to the public in a revenue-sharing agreement with owners.

“A few years ago, you didn’t even want to see that type of clientele it brought in, but that has changed,” they said. “Today, it’s mostly professionals who come and go, a situation that is much better for our community.”

Smart Home Tech Adds Convenience, But Cost of Living Really Matters

Offering smart-home conveniences where renters operate their doors, lighting and utilities through an app on their phone comes easily and naturally to younger residents, they said. “And now, even for older residents, they are getting better. You tell them it’s available and, at first, they are scared. Then you show them how easy it is and they are happy to use it.”

Such conveniences can be perceived as attractive to renters, but not always. One California-based operator said in her state, “it’s all about cost of living for the younger renters,” so that comes first before paying extra rent for other things.

The session was moderated by Jeremy Lawson, Director, Regional Marketing, Fogelman Properties; Charlotte Pisciotta, Vice President, Full House Marketing; Patricia Pawlikiewicz, Regional Education Manager, Mercy Housing; and Lani Grant, CEO, Monticello Asset Management.