How Property Managers Can Attract Churning Tenants

While half of current renters are planning to stay put for the foreseeable future, about one-third of renters are thinking about moving in the next 12 months. Those who plan to renew their lease tend to report being happy with their current location and unit, are dissuaded by the expense of moving, and believe their rent might be more expensive elsewhere, according to a renter preferences report from real estate technology firm AppFolio.

Those who plan to move are primarily looking for a better apartment or house, lower rent, a better community, or a change in their roommate situation, the survey found.

In a competitive rental market that is expecting a million new units to hit the market by the end of 2025, property managers who innovate and embrace technology may have an edge over renters, said AppFolio. Nearly a third of renters search for new rentals on the property or property manager’s website, which ranked in the top three resources prospective tenants use along with internet listing services Zillow and Apartments.com. While searching, renters favor listings that are clear and transparent and they say they are influenced by a property manager’s reputation on review sites when evaluating a new rental, the report found. Recommendations from friends and family were also important and highlighted the value of the property manager’s reputation.

More than three-quarters of renters indicated they expect to hear back about a listing within 24 hours of contacting the owner or property manager, and 27% expect a response within a few hours, the report said.

As the importance of Gen Z grows in the rental arena, property managers will have to invest in modern technologies to appeal to this generation that will become the largest demographic of renters by 2030, said AppFolio. Some 81 percent of Gen Z and 77% of Millennials said having access to an online resident portal or mobile app for their unit is important. That compares with 52% of Baby Boomers.

In addition, younger renters want smart home technology in their rental, including tools like Wi-Fi-enabled thermostats, lights and locks. Only 38% of Baby Boomers found such features to be important. Most Gen Z and Millennial renters consider online payment options important, compared with 67% of Baby Boomers, according to the report.

“This report highlights the undeniable impact that technology has in meeting renter expectations,” said Stacy Holden, senior director and industry principal at AppFolio. “Bottom line, great resident experiences today are all about timely and clear communication, while having access to the information you need at your fingertips. By leveraging the latest innovations, including AI-powered leasing solutions, smart home technology, and easy-to-use online resident portals, property managers can create win-win scenarios for their business.”