SANTA BARBARA, Calif., May 18, 2023 (GLOBE NEWSWIRE) -- AppFolio, Inc. (NASDAQ:APPF), a cloud-based technology platform built for the real estate industry, today released its 2023 Property Manager Renter Preferences Report. In a dynamic market where property managers face challenges like increased competition due to the historic crush in new apartment supply, this new report provides actionable insights into how property managers can drive renter satisfaction and retention and underscores the wider importance of effective property management.
According to AppFolio data, based on a survey of nearly 1,000 U.S. renters, overall satisfaction with property managers, along with flexibility in payment methods and technology offerings, are all major factors in retaining residents. While 66% of renters reported that they are satisfied with their property manager – up from 55% from last year’s study – only half (50%) plan to renew their expiring lease this year. This reveals a need for property managers to better understand renter expectations.
Key takeaways from the 2023 Property Manager Renter Preferences Report include:
- Property managers will be in fierce competition to retain and attract residents and play a key role in tenant satisfaction.
- A great property manager is a key factor in retaining current residents. Of satisfied renters, 57% say their property manager is a main reason they are considering renewing their lease.
- Outside of property attributes, a property manager’s reputation is key for attracting new residents. 68% of renters say a property manager’s reputation on review sites is important when evaluating a new rental.
- The top three reasons that unsatisfied renters are considering moving are for a better apartment/house (63%), lower rent (49%) and a better property manager (45%).
- Renters demand online payment options from their property manager.
- Paying rent online is a primary factor when finding a new rental property. More than half (60%) of renters say online rent payments are important or very important when evaluating a new rental.
- Of those renters without the option to pay online, 58% would like their property manager to offer the option.
- Younger demographics are more likely to embrace online payments. Gen Z (65%) and Millennials (61%) are most likely to pay their rent online (compared to 40% of Gen X and 46% of Boomers).
- Younger residents expect much more from their property manager.
- Renting to Gen Z? Property managers need to do more to satisfy them. Only 56% of Gen Z renters are satisfied with their property manager (compared to 64% of Millennials, 66% of Gen X and 75% of Boomers).
- There’s room for growth when it comes to retaining younger residents. Only one-third (35%) of Gen Z renters are likely to renew their lease (compared to 44% of Millennials, 53% of Gen X and 67% of Boomers).
- Why are Millennials leaving? They want to pay less. Millennials are the most price sensitive, with 51% citing lower rent as their reason for moving (compared to 38% of Gen Z and Gen X).
“With the rental industry evolving, property managers need to take a critical look at their offerings to ensure they are competitive and keep pace with resident expectations,” said Stacy Holden, Senior Director, Industry Principal at AppFolio. “Today’s renter preferences will help shape the housing of tomorrow, so it's important for property managers to uplevel their service now through tech and other thoughtful offerings. This will help rental teams retain current residents and entice others.”
As more units hit the market this year and competition increases, property managers need to act now to meet the evolving expectations of today’s renters. The report highlights the crucial role that property managers play in tenant satisfaction, with actionable insights into technology and other solutions to enhance the renter experience and increase retention. Download the 2023 Property Manager Renter Preferences Report to review more key findings and insights.
AppFolio surveyed nearly 1,000 U.S.-based, market-rate renters ages 18-plus from Feb. 23, 2023 to Mar. 1, 2023. Renters are categorized as market-rate if they reported not currently participating in any affordable housing program.
About AppFolio, Inc.
AppFolio, Inc. is a cloud-based technology platform built for the real estate industry. Our solutions enable our customers to digitally transform their businesses, address critical business operations and deliver a better customer experience. For more information about AppFolio, visit appfolio.com.
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