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Diversify Your Approach to Stay Ahead in Multifamily Marketing

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By The Editors
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What's your 2025 digital marketing strategy for apartments and how to stay ahead in multifamily marketing in the peak leasing season?
What is your 2025 digital strategy for marketing your rental properties?

What is your 2025 digital marketing strategy for apartments and what do you have to do to stay ahead in multifamily marketing heading into the peak leasing season?

By Kevin Juhasz

In a fiercely competitive multifamily market, digital marketing is crucial for attracting qualified leads and increasing occupancy. An effective marketing strategy is equally vital as the industry approaches the 2025 peak leasing season, and success requires a more diverse and sophisticated approach.

Multifamily marketing professionals must continue expanding their digital presence across multiple channels, even though many face flat or decreased marketing budgets.

While 88% of marketing teams use an Internet Listing Service (ILS) and plan to keep investment relatively steady, about three-quarters of them are planning on investing more across digital channels to find their next renters, according to Rent. However, there is a fundamental change in how teams are using marketing channels.

Diversifying the Channel Mix

A community’s marketing mix typically includes such reliable industry standards as ILS, community websites and social media platforms.

However, to maximize reach and engagement, multifamily marketers are starting to incorporate additional strategies that are both cost-effective and proven to attract high-intent prospects.

By integrating geofencing/digital display, paid search and paid social into their marketing strategy, multifamily teams are enhancing visibility, increasing lead quality and improving leasing performance in 2025.

  • Paid search: Paid search remains one of the most efficient lead-generation strategies for multifamily communities. By targeting high-intent searchers who are actively looking, communities can drive qualified traffic to their websites. The key to success is rooted in keyword strategy, bid management and ongoing optimization to maintain high conversion rates while keeping cost-per-lead (CPL) low. Multifamily marketers should activate paid-search campaigns now for maximum impact when peak season begins. By launching early, campaigns can go through the learning phase, allowing the Google Ads algorithm to refine its targeting, optimize bids and improve ad performance before the spring rush.
  • Geofencing: More than 40% of marketers are trying new digital channels like geofencing for the first time in 2025, according to Rent. These tools allow properties to deliver highly targeted ads to potential renters when they are searching for apartments near a community or visiting competitor locations. This hyperlocal approach increases brand awareness, foot traffic and lead quality, making it a cost-effective complement to search-based advertising.
  • Paid social: Social media plays a crucial role in renter decision-making, so paid social media campaigns allow marketers to reach audiences where they spend the most time—on such platforms as Facebook, Instagram and TikTok. Advanced targeting features enable leasing teams to retarget website visitors, engage predictive audiences and reach renters based on demographics, interests and behaviors. Paid social is increasingly effective at generating interest and driving tour sign-ups and applications.

Adding AI to the Mix

AI is revolutionizing the multifamily marketing by enhancing personalization, lead generation and operational efficiency.

AI-powered chatbots and virtual leasing assistants can engage prospects 24/7, answering questions, scheduling tours and collecting valuable data. Predictive analytics help marketers analyze trends, demographics and online behaviors, allowing for more targeted campaigns.

Sentiment analysis helps community managers gauge perception and adjust marketing strategies accordingly. AI also enhances resident retention by analyzing feedback and identifying patterns that influence resident satisfaction. This allows management teams to address concerns and proactively boost reputation management efforts.

Building a Data-Driven Channel Mix

 By striving to base marketing decisions on up-to-the-minute data insights, owners and operators can optimize their marketing budget through practical analytics that identify top-performing channels.

Properties with integrated analytics systems can better track lead sources and calculate the exact cost-per-lease metrics.

Digital marketing for apartments needs constant monitoring of performance indicators. Properties that use data-driven strategies can better predict market trends and adjust their marketing mix accordingly. Marketing teams with complete analytics platforms can show clear value and ROI for their campaigns, measuring channel performance through these key metrics:

  • Lead source tracking and conversion rates
  • Cost per lead and cost per lease
  • Website engagement metrics
  • Social media interaction rates

Up-to-the-minute performance-tracking guides efficient channel diversification. Advanced analytics tools let properties measure the effectiveness of different channels simultaneously and make quick adjustments to maximize budget spending and results. Using proven performance metrics, marketing teams can better allocate resources across channels.

Measuring Multichannel Success

Measuring success across multiple marketing channels requires accurate tracking and analysis of performance indicators. Property managers who track lead quality see 44% higher conversion rates. They achieve this through detailed analytics systems that examine multiple touchpoints at once:

  • Lead-to-tour conversion rates
  • Cost per application
  • Website traffic patterns
  • Brand-visibility indicators
  • Direct traffic volume

Property managers who use advanced analytics tools can better predict occupancy trends and reduce operational costs. Specific metrics help marketing teams identify the strengths and weaknesses of particular strategies. For instance, high website traffic with low conversion rates often indicates the need for targeting adjustments.

Multifamily properties with detailed tracking systems can better measure their marketing spend returns. Properties that focus on improving conversion rates at every touchpoint run more efficient marketing campaigns. Marketing teams can analyze data across channels and make quick campaign adjustments, allowing them to optimize based on actual results instead of guesswork.

Successful digital marketing for apartments through 2025 requires a strategic mix of diverse channels, analytics and accurate measurement systems. Multifamily marketing teams that adapt to this digital world will generate and convert more qualified leads, helping them stay ahead of their competitors. This detailed approach, combined with immediate analytics and performance tracking, builds a resilient growth foundation.

About Rent.

Rent. is a two-sided marketing platform that simplifies the entire renter experience by matching the right property with the right renter, at the right time. Rent. is operated by Rent Group Inc., a subsidiary of Redfin Corporation.

About the author:

Kevin Juhasz is a content manager for LinnellTaylor Marketing.

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New Salt Lake City Renters Coming From Provo

By
John Triplett
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New renters in Salt Lake City are coming from Provo according to annual Apartment List renter migration study

Nationwide in 2024, 39% of Apartment List users searched for their next rental in a new metropolitan area, while 25% considered a new state entirely, according to Apartment List’s annual renter migration study.

Researchers say this data highlights strong migration channels out of expensive states, particularly along the coasts, to more affordable ones, particularly in the southeast and Mountain West, a trend that emerged early in the COVID-19 pandemic and has remained steady to this day.

Of renters moving to Salt Lake City, the highest percentage, 14.3%, are coming from Provo, according to the report. That number is followed by 11.8% from Ogden, and 4.8% from Denver.

On the flip side, of the renters who are leaving Salt Lake City, 21.8% are choosing to move to Ogden, 21.3% to Provo, and 9.6% to Boise City.

Renter-Migration Patterns Settling Down After Covid

The Apartment List report says since the COVID-19 pandemic, developments in remote work, housing affordability, and local economic growth/decline have shifted American migration patterns.

“Most notably, there have been outflows from some of the nation’s largest and most-expensive housing markets to more-affordable and less-densely populated ones. Overall migration has slowed somewhat, as have long-distance moves to a new state or a new metropolitan area,” the company’s researchers write.

Read the full article here and select your location to see results.

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Is Understanding “ROT” The Key To Being A Better Investor?

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By The Editors
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Is understanding ROT, or return on time, along with ROI, return on investment, the key to being a better real estate investor?

Is understanding ROT, or return on time, along with ROI, return on investment, the key to being a better real estate investor?

By Scot Aubrey

When you hear the word “rot” in relation to real estate, all sorts of bad visions and horror stories immediately come to mind.

In fact, that word often translates in our minds to money, as in, how much is it going to cost me to repair whatever is rotting.  Allow me to introduce a new way of looking at this word in a much better way, one that when done right, can actually add to your bank account rather than being a drain on it.

While every investor is intimately familiar with ROI, return on investment, which carries a great weight when evaluating a property, many may disregard an equally crucial factor, and that is ROT, or return on time.

For purposes of this article, we will examine return on time to help you become an even more successful and satisfied investor.

Gut Reaction

If you will, please take the next thirty seconds and stop reading.

I want you to think about your portfolio by specific address if you can and think of or say aloud the address of one of your investments.

How do you feel when you hear that address?  Many of you probably have that “perfect” property that houses great tenants who pay on time and even manage some of the most common maintenance items out of their own pocket.  This property brings a smile to your face and good feelings, knowing that it is an asset that provides a great return on both your time and your investment.

Others of you had a physical, maybe even violent reaction when you thought of a property that is less than your ideal.  Tenants that pay late consistently, that call you for even the simplest repairs, which cause friction with their neighbors.  You know the one because it takes up an inordinate amount of your time and more than once you have considered offloading it, and its attendant problems, out of your portfolio and your life.

The Analysis

While return on time is an often-overlooked real estate investor metric, it needs to play a critical role in your decision-making, particularly when time is limited.

After all, time is money and every second you spend managing a property with a low ROT can feel like a total waste because you are sacrificing time that could be spent with family, on a hobby, vacationing or finding your next great property.

While there is no universal formula for ROT, you can begin by evaluating the benefits, satisfaction, or personal wealth derived from the time spent on a specific property.  Time is finite, and therefore, optimizing how time is spent is just as important as financial investments.

ROT focuses on the time and the intangible returns that come from using time effectively.  ROT  is based on the principle that time, like money, is a limited resource.  Time cannot be bought back once spent; therefore, ROT considers the opportunity cost of how time is spent.

Is the time spent working on a project worth the long-term value or the personal satisfaction gained from it?  That is the key question in any analysis you perform with ROT in mind.

A Balanced Approach

Decision making focused solely on ROT could result in the neglect of profitable opportunities if that is the only metric considered.

Every investment you approach has to include a thorough look at the financial AND time aspects required to create a positive return.

For example, let’s say you found an underpriced property in a great neighborhood, but the home needs an extensive remodel to make it appealing to the majority of the market.

You also found a home in the same neighborhood that is turn-key ready but costs 75% more than the fixer upper.  ROI and ROT would be evaluated when deciding between these two projects—one that offers a higher ROI but requires more time, and another that is less lucrative but can be completed more quickly.  Only you can determine how much each factor weighs into your decision-making  process, but both must be a major component of your final determination.

Conclusion

While both ROI and ROT are critical for evaluating decision-making in both personal and professional contexts, they serve different purposes.  A lot of other factors will influence your investment path as well.

Is this a hobby or profession?  What is your age and how many years left do you have to grow your portfolio?  What kind of financial backing do you have if things go sideways?

These questions, and so many others can help you determine how and when to use ROT as a measurement in your present and future investing.  And if you are still feeling heartburn from the earlier exercise where you thought about your portfolio, be bold enough to cut out the rot and move on to an investment that brings you both joy and financial freedom.

About the author:

Scot Aubrey is Vice-President of Rent Perfect, a private investigator, and fellow landlord who manages short-term rentals.  Subscribe to the weekly Rent Perfect Podcast (available on YouTube, Spotify, and Apple Podcasts) to stay up to date on the latest industry news and for expert tips on how to manage your properties.

Here are 6 things to consider if you rent by the room- or want to do so - which can be financially beneficial but with some cautions.

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photo credit GaudiLab via istockimages

Landlord Ordered to Pay $80,000 Over Threat to Call ICE On Tenants

By
John Triplett
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An Illinois court has ordered a landlord to pay more than $80,000 for threatening to call immigration authorities (ICE) on a tenant couple

An Illinois court has ordered a landlord to pay more than $80,000 for threatening to call immigration authorities (ICE) on a tenant couple who rented an apartment from him in 2020, according to reports.

The couple sued the landlord, Marco Antonio Contreras, under the Illinois Immigrant Tenant Protection Act (ITPA), which protects tenants from discrimination or harassment based on their immigration status, said the Mexican American Legal Defense and Educational Fund, (MALDEF) which filed the lawsuit on behalf of the couple in 2022.

MALDEF filed the suit because the family’s landlord “threatened to call U.S.  Immigration and Customs Enforcement (ICE) during a rent dispute, solely based on the parents’ perceived immigration status. The suit was the second brought by MALDEF under ITPA, which bans landlords from discriminating against or harassing a tenant based on the tenant’s actual or perceived immigration status,” according to a release.

According to the lawsuit, the tenant family rented a basement apartment from Contreras and his wife beginning in 2017. On June 30, 2020, the landlord went to the family’s apartment and demanded payment of the July rent.  During the discussion, Contreras threatened to report the couple to federal immigration officials, in violation of the law.

“We decided not to stay silent because our landlords threatened us with calling immigration, and we do not believe that anyone has a right to threaten us,” the tenant couple said in a statement. “No one should feel or act superior to others. We are all equals and deserve respect. Just because someone is your landlord does not mean that they get to do whatever they want to you.”

Landlord ordered to pay

On February 19, 2025, Illinois Circuit Court Judge Catherine A. Schneider ordered landlord Contreras to pay more than $80,000 in damages as well as attorneys’ fees and costs for violating the ITPA. The judge also awarded a smaller sum in compensation for denying the tenants access to their belongings.

“Everyone has rights under the rule of law regardless of their actual or perceived immigration status. In Illinois, landlords are prohibited from wielding the threat of immigration enforcement as a weapon against their tenants,” said Susana Sandoval Vargas, MALDEF Midwest Regional counsel, in the release.

“This decision shows that those who choose to disregard these protections will face serious consequences. This is an important victory for all tenants in Illinois, who, like our clients, just want a safe place to call home.”

Illinois was the second state in the United States to enact legislation in 2019 protecting immigrant tenants’ rights. Both New York City and the state protect immigrant tenants’ rights. California passed an immigrant tenant law in 2017. In 2021, a Colorado Tenant Protection Act went in

6 Trigger Words And Questions Every Landlord Should Listen For

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By The Editors
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6 Trigger Words And Questions Every Landlord Should Listen For

Trigger words and questions from potential tenants and rental applicants that every landlord should listen for and consider.

By David Pickron

You can hardly turn on a television or read a newsfeed where you don’t encounter the term “trigger words.”  While there are some universally accepted trigger words, like racial or ethnic slurs, most people or groups have their own unique lexicon of words that send them immediately into orbit.  Our industry is no different, and over the years the way we identify the players in our game have even fallen victim.  In many circles, “landlords” are now more generically referred to as “housing providers,” while tenants are now more often called “residents.”

As a landlord (I can call myself that because I am one) for more than 20 years, I have encountered thousands of applicants who are looking to rent my property.  In looking at them as a potential “business partner,” I engage several of my senses to get a read on what kind of potential partner they might be.  More important than anything, I listen closely to the questions they ask as we tour the property.  The following is a list of the top trigger words or phrases that every landlord, old and new, should intently listen for to ensure they are getting the best possible read on a person for their property and partnership.

Disclaimer: Being presented these questions doesn’t always mean the applicant is a definite no-go, but it should put you on notice.   Always make decisions from your detailed criteria.

1. Are you going to perform a background check on me?

Has an innocent person with nothing to hide ever asked this question?

The likely answer is no.  Why would they?

If I have no criminal background history, then I have nothing to fear; run all the background checks you want.  As an applicant, if I have something in my past that I am trying to keep from you as my potential landlord, I’d rather know up front, so I don’t waste time or money on trying to qualify for your property.  If this question ever comes up, now is the perfect time to introduce your rental criteria.  Let the applicant know that you have a standard criteria and that these rules are applied evenly and fairly to all applicants.  It’s easier to let the criteria work for you in showing exactly where the standard is for qualifying for your property.  Make sure the criteria are clear in defining exactly what you are looking for when it comes to disqualifying criminal history.  And if you don’t have a criteria, consult with your attorney or local experts to ensure that what you are doing in regard to background checks is legal.   We have a great detailed sample criteria we would love to send to you.  Just email [email protected]

2. Do you require a deposit up front?

 I can’t tell you how many times I’ve heard this question, or one similar to it.

I’ve been asked to spread out a deposit over a few months, or even the entire term of the lease.  Whatever form it comes in, it puts me on alert.  Why?  Because it usually indicates that money is tight and that I may not be a priority when finances are stretched thin.  When a medical bill or car-repair charge hits a tenant hard, you may be the last person to get paid, if you get paid at all.  Now is the time when you really have to stick to your guns and require that deposit, as it may be the only protection you have moving forward.

3. Can I move in immediately?

 I’ve shown properties where the individuals have arrived at the showing with the moving van packed and ready to unload.

This concerns me, as I have to ask them why they are needing to move so quickly.  Did they just get evicted?  Did they leave their last residence in the middle of the night to avoid being seen by their landlord?  Granted, there are times when an applicant just suffered a devastating loss by flood or fire and needs immediate housing.  Asking follow-up questions on why they need to move so quickly will help you analyze the situation and make the best decision for you and your property.

 4. How many people can stay here?       

 While it might seem harmless, this question could lead to more people living in your property than it can accommodate.

When an applicant sees your listing as a 3-bedroom, 2-bath, it’s pretty safe to expect it can accommodate up to 6 people.  Establishing the maximum occupancy in an applicant’s mind lets them know what you expect and consider as “too many” people in the home.  This question is often accompanied by “how long can someone stay and still be considered a guest?”  Both of these together or individually are cause for you to ask a lot of follow-up questions to determine exactly how your property will be used.  Again, clear criteria can protect you in this area.

5. How many pets can I have in the property?

 Pets are just part of the business and having a firm policy regarding number or type is a great way of protecting your investment.  While you don’t want a zoo moving in, having a no-pet or one-pet policy is pretty standard.  Make sure to require an additional deposit (see point No. a 2) and collect all of it before move-in.  It’s beneficial to define what is considered a pet and to clearly communicate what animals are and are not allowed in or on the property.  I’ve seen tenants who tried raising chickens in the back yard use the excuse that, a) they aren’t pets and b) they never go inside the residence.  Along with violating our lease, they also violated the CCR’S of the Homeowners Association and made me subject to a pretty hefty fine with the city.  Clarity, especially when it comes to pets, will save you a lot of headaches.

6. My current landlord is a jerk

This trigger word lets me know that I just might be the next “jerk”.

Most landlords I meet just want to maintain their property value and make money, and keeping tenants happy is an integral part of that game.  No one wants to discourage a good, paying tenant who is taking care of the property; ask your applicant why they feel that way.  Often, I hear the current landlord will not return their calls.  I see a frustrated landlord when this action starts and, in my mind, it always takes two to tango.

There are countless other things to listen for as you meet with a rental applicant; you likely have stories to tell that top my experiences.  Listen intently, ask as many follow-up questions as you need, and communicate your criteria and policies clearly.  After all, when you are getting ready to turn your keys over to a sizable asset, knowing who you are renting to is critical to your success in this business.

About the Author: 

David Pickron is President of Rent Perfect, a private investigator, and fellow landlord who manages several short- and long-term rentals.  Subscribe to his weekly Rent Perfect Podcast (available on YouTube, Spotify, and Apple Podcasts) to stay up to date on the latest industry news and for expert tips on how to manage your properties.

Using A Code Word Helps You Get the Right Tenant

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National Rent Growth Flips Positive In February

By
John Triplett
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National rent growth flipped back to positive in February for the first time since July 2024, according to the March report by Apartment List.

National rent growth flipped back to positive in February for the first time since July 2024, according to the March report from Apartment List.

National rents fell 0.2% in January, a month that typically marks the bottom of the rental market each year, but then grew by 0.3 percent in February following six straight monthly declines.

Year-over-year national rent growth also remains negative at -0.4 percent, but is slowly inching back toward positive territory. In dollar terms, the national median monthly rent now stands at $1,375, up $4 per month compared to February but down $5 compared to February 2024, the Apartment List research team writes in the report.

At the local level, 75 of the nation’s 100 largest cities saw rents rise in February.

On a year-over-year basis, rent growth is now positive for a majority of large cities (58 of the top 100).

The Apartment List national index remains negative largely due to steeper declines in a concentrated set of Sun Belt metros that are rapidly expanding their multifamily inventory; these include Austin (-6.9 percent year-over-year), Denver (-4.7 percent), and Raleigh (-3.2 percent).

National rent growth flipped back to positive in February for the first time since July 2024, according to the March report by Apartment List.

“Rent growth follows a seasonal pattern – prices tend to go up during the spring and summer and dip during the fall and winter,” the research team writes. “The end of the year, in particular, generally sees the slowest rental market activity as few households move during the holiday season.

“Demand tends to bounce back in the new year, gradually ramping up to peak season activity in the late spring and early summer. In keeping with that pattern, February saw a return to positive rent growth, with prices ticking up for the first time since last July.”

Multifamily vacancy rate hits 6.9%, a new peak

The rising vacancy rate in recent years is largely attributable to an influx of new multifamily inventory hitting the market.

“As new apartment completions decline, the vacancy index could begin to tighten again, but for now, we’re still seeing vacancies rise, even as rent declines gradually moderate,” the research team says.

National rent growth flipped back to positive in February for the first time since July 2024, according to the March report by Apartment List.

List-to-Lease time retreats from all-time high

The slight decline in time-on-market in February is in line with the seasonal return to positive month-over-month rent growth.

National rent growth flipped back to positive in February for the first time since July 2024, according to the March report by Apartment List.

“That said, this is still the highest time-on-market reading that we’ve seen in February of any year going back to the start of 2019, when the data series begins. Units are currently sitting vacant for three days longer than they were at this time last year, and for 10 days longer than they were in February 2022, when the market was just beginning to loosen. The influx of new supply is resulting not only in a growing number of vacant units, but also in an increase in the length of time those units remain unoccupied,” the research team writes.

Read the full report here.

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Multifamily Starts 2025 ‘Walking a Tightrope’

Rents Forecast to Rise in 2025 and 2026

Will Multifamily Have a Strong Year in 2025?

Stay Ahead of the Game: Avoiding Multifamily Hurdles Before They Occur

Multifamily New Supply To Decrease In 2025-2026

By
John Triplett
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Multifamily new supply construction starts are 40% below the peak level recorded in 2022, Yardi Matrix says in a Multifamily Supply Forecast

Multifamily new supply construction starts are now 40% below the peak level recorded in 2022, Yardi Matrix says in a new Multifamily Supply Forecast report.

This decrease, however, comes from a very high starting level, and a still-large inventory of properties remains to be completed.

Overall, the number of units under construction tracked by Yardi Matrix is declining. However, in 2025 the still-large under-construction pipeline will deliver the second-highest amount of annual new supply since the 2008 financial crisis, trailing only 2024’s record volume.

“This slowdown has begun to work its way into the under-construction pipeline, which will result in ​a contraction of new supply from 2025 through 2027. That follows a very high level of development activity and a large inventory of properties still to be completed.

“As a result, forecast completions for 2025 have been increased by 3.3% to roughly 525,000 units, with a 2026 increase of 11.5% to 414,000 units,” writes Ben Bruckner, Senior Research Analyst, for Yardi Matrix.

Multifamily new supply construction starts are 40% below the peak level recorded in 2022, Yardi Matrix says in a Multifamily Supply Forecast
For the Q1 2025 update, the Yardi Matrix Multifamily Supply Forecast was increased for years 2025 through 2027. The forecast for the remaining years is substantially unchanged. Chart courtesy of Yardi Matrix.

The continued elevated construction completion times are a key factor here, the report says, and some amount of the current under-construction inventory will not be completed until 2026. The current forecast update, therefore, anticipates new supply will not fully bottom until 2027.

“For the longer term, the current forecast assumes a higher-for-longer Federal Reserve policy will keep short- and longer-term interest rates elevated. Continued tight new development financing combined with long development lead times will cause construction starts to remain at the same level in 2025 as seen in 2024, resulting in new supply bottoming in 2027,” Bruckner writes.

Read the full report here.

About Yardi Matrix

Yardi Matrix researches and reports on multifamily, office and self-storage properties across the United States, serving the needs of a variety of industry professionals. Yardi Matrix Multifamily provides accurate data on 18+ million units, covering more than 90 percent of the U.S. population. Contact the company at (480) 663-1149.

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Rents Forecast to Rise in 2025 and 2026

Will Multifamily Have a Strong Year in 2025?

Stay Ahead of the Game: Avoiding Multifamily Hurdles Before They Occur

California Preparing for Move-In, Move-Out Documentation Law

By
By The Editors
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California's new move-in, move-out documentation law says landlords must take photos of rental units before and after a tenant moves in

California is preparing for new move-in, move-out documentation law that requires landlords take photos of rental units before and after a tenant moves in. Digital photography and storage through property management software could help.

By Richard Berger

A layer of complexity will be added to onsite and maintenance teams in California regarding move-ins, move-outs, and security deposits when California law Assembly Bill (AB) 2801 goes into effect this year.

The new documentation law requires landlords to take photos of rental units before and after a tenant moves in. The law also requires landlords to provide these photos to tenants along with any itemized deductions.

Apartment owners or management companies must take high-resolution, date-stamped photos of the unit before the tenant moves in and immediately after the tenant moves out.

Beginning April 1, an owner or management company must take photographs of the unit within a reasonable time after the possession of the unit is returned to the owner/manager but before any repairs or cleanings for which the owner/manager will deduct from the deposit are completed, and that the owner/manager take photographs of the unit within a reasonable time after the repairs or cleanings are completed.

Owners must take photos of the unit after repairs or replacement items such as appliances are complete or the new item is installed.

AB 2801 takes effect for move-ins on or after July 1, 2025.

AB 2801 also imposes stricter limits on security deposit deductions. It clarifies what qualifies as “reasonably necessary” charges for cleaning and repairs

The bill restricts any deductions taken by a housing provider against a tenant’s security deposit, limiting such deductions to reasonable amounts and repairs that are “reasonable and necessary” to restore the premises to their condition before the tenancy, except for ordinary wear and tear.

Assembly Bill 2801 prohibits operators from deducting the cost of professional services such as professional carpet cleaning, unless reasonably necessary.

“In the long run, this is going to help reduce disputes,” Kim Arnold, Vice President – Management, Atlantic Pacific Management, said.

Arnold said her on-site team would handle the photography during the initial walk-through, and her maintenance team would handle the photography at the move-out stage.

Her firm operates 2,500 units in San Diego and Riverside County with an annual turnover rate of 24.1 percent, well below the industry average of 50 percent.

Her teams also must manage the process, such as labeling the photos and downloading and preserving the images.

Mobile maintenance apps have grown in popularity in recent years. Software tools such as AppWork and others streamline and simplify the process, allowing digital photography and storage to be handled through an onsite team member’s company-issued phone.

“The move-out post-repair photos will be the most difficult logistically and administratively because, for example, when replacing a stove, the new stove doesn’t always arrive within 21 days, so you must wait for it,” Arnold said.

“In the end, we don’t want to go to small claims court over security deposit complaints. We give our managers a lot of latitude when deciding how to handle the situation. We haven’t been to court in eight or ten years.”

The documentation law, AB 2801, could create unnecessary delays in the turnover process, directly impacting unit availability and operational efficiency. According to Sean Landsberg, CEO of AppWork, the key will be leveraging technology to streamline photo capture, organization, and retrieval while minimizing disruptions to day-to-day maintenance work.

“Meeting the requirements of AB 2801 means going beyond just taking photos, it requires a structured process for taking, storing, and accessing images efficiently,” Landsberg said.

“Maintenance software allows teams to capture high-resolution, time-stamped photos directly within a work order, automatically linking them to the unit’s history for easy compliance. By automating this process, operators can ensure they meet legal requirements while keeping their teams focused on core maintenance responsibilities rather than administrative tasks.”

Windell Mollenido, VP of Marketing & Technology, REMM Group, called AB 2801 a big deal.

“That’s going to take a lot of time for our maintenance and onsite teams,” he said. “It’s almost as if they have to record a virtual unit tour with their smartphones. That’s not to mention having to label the images, upload them to our property management platform, and manage them.

“This is not exactly what we have in their job descriptions. They’ll need to focus on taking consistent images – that means focusing on the right things and not blurry. We’d rather have them spend more time maintaining our apartments by handling work orders.”

REMM manages approximately 6,000 apartments throughout Southern California – from San Diego to Los Angeles to the Inland Empire.

About the author:

Richard Berger is a freelance journalist who has 20+ years of experience covering commercial real estate for various media sites and CRE-related associations. He lives in Northern Virginia.

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Rising Vacancies, Competition for Renters Challenge Property Management

By
John Triplett
-
Rising Vacancies, Competition for Renters Challenge Property Management according to a new survey of 2,000 property management professionals

Rising vacancies challenge property management the real estate property-management software company AppFolio says in its 2025 Property Management Benchmark Report, based on insights from more than 2,000 property management professionals.

“The property-management industry is entering 2025 at a moment when rising vacancies, growing competition for renters, and increasing concerns around fraud and cybersecurity are creating a more challenging business environment,” AppFolio writes in the report.  It “reveals what’s on the industry’s mind, as well as the strategies and tools that forward-thinking businesses are using to stay ahead.

“These challenges, however, also present an exciting opportunity to innovate, streamline operations, and deliver even greater value to residents and property owners alike.”

Highlights of the report

Challenges Facing Property Managers

  • In the proptech (real estate + technology) industry, top concerns have shifted from macroeconomic issues, such as inflation, to more industry-specific challenges, such as rising insurance costs.
  • Difficulty in maintaining occupancy rates is now the No. 1 threat, with a 20% increase since 2023, overtaking inflation.
  • 40% of property managers consider rising insurance costs a top threat, particularly in natural disaster-prone Southern/Western states.
  • 70% of property managers now track resident satisfaction, up 10% from last year.

Rising Vacancies, Competition for Renters Challenge Property Management according to a new survey of 2,000 property management professionals

Rise in AI usage

  • Property managers are increasingly turning to AI to tackle key challenges such as resident retention and fraud prevention. The use of AI increased by 13% year over year (YoY), from 21% in 2024 to 34% in 2025.
  • The most common use of AI is resident communication (60%), and over half (51%) of property managers now use AI to improve resident satisfaction (an 8% YoY increase).
  • A quarter (25%) of companies are encouraging employees to use AI (an 8% YoY increase).
    • The percentage of property managers with no plans to start using AI decreased YoY by 14%.
  • On the flipside, the top concerns with AI implementation are security and data breaches (41%) and AI regulation and compliance (33%).

The Rising Threats of Fraud and Security: 

  • Property managers are facing increased pressure to protect both their businesses and their residents from a rise in fraud
  • Compared to last year, property managers are 40% more concerned about online fraud incidents and 37% more concerned about data security.
  • In the past year, 79% of property managers experienced payment fraud and 88% experienced data issues.
  • Only 16% of property managers are completely confident in the authenticity of applicant-provided documentation.

Read the full report here.

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Multifamily Starts 2025 ‘Walking a Tightrope’

Rents Forecast to Rise in 2025 and 2026

Will Multifamily Have a Strong Year in 2025?

Stay Ahead of the Game: Avoiding Multifamily Hurdles Before They Occur

2025 U.S. Real Estate Outlook: Navigating Change, Capitalizing on Opportunity

By
John Triplett
-
The U.S. real estate sector stands at a pivotal crossroads, with the new year promising a mix of opportunities and challenges.

By Chip Stuart

In 2025, the U.S. real estate sector stands at a pivotal crossroads, with the new year promising a mix of opportunities and challenges.

While recent years have brought turbulence, from rising insurance costs to fluctuating interest rates and persistent labor challenges, 2025 offers glimmers of hope alongside continuing complexities.

Interest rate adjustments and stabilizing insurance premiums provide reasons for optimism. At the same time, natural disasters, labor shortages and evolving litigation trends demand vigilance.

Real estate owners and operators must adopt robust strategies that integrate risk management, employee engagement and financial planning to stay ahead. By preparing for shifting market dynamics and addressing key challenges, those within the sector can position themselves for resilience and profitability.

Retaining and attracting talent amid persistent labor shortages

The tight labor market continues to challenge the real estate industry, impacting property management, construction and tenant operations.

High turnover rates among maintenance staff, security personnel and cleaners create operational vulnerabilities, including increased property risks and insurance costs.

For tenants, the issue is equally pressing.

Businesses in hospitality, retail and food services face staffing shortages that hinder their ability to meet lease obligations and operate safely. Property owners must invest in recruitment and retention strategies, while also creating environments that attract tenants’ employees back to the workplace.

Enhancing workforce engagement requires a multifaceted approach that addresses both employee needs and operational challenges. Offering personalized benefits through data-driven strategies can significantly improve employee satisfaction and retention, creating a more stable and motivated workforce.

Additionally, investing in property enhancements, such as upgraded amenities and improved safety features, not only makes workspaces more appealing but also fosters tenant satisfaction.

To address construction labor gaps, collaborating with contractors and workforce development programs is essential for ensuring that projects are completed efficiently and on schedule.

Profitability in a complex landscape: Balancing rising costs and new opportunities

Profitability in real estate remains under pressure, with operating expenses such as construction, insurance and labor costs rising steadily.

Additionally, the industry grapples with high borrowing costs and increased vacancy rates, particularly in the office and industrial sectors. Office vacancies surpassed 20% in 2024, a stark indicator of ongoing challenges. Close to $1 trillion in commercial real estate mortgages are also slated to mature by the end of the new year, creating additional refinancing pressures.

Yet, 2025 could mark a turning point. The Federal Reserve’s recent interest rate cuts of 50 basis points, combined with expectations for further reductions, are likely to lower borrowing costs, spurring new demand and alleviating refinancing pressures. Investors and operators could also see relief in stabilizing insurance premiums, particularly for properties with strong risk management programs.

Real estate owners looking to improve profitability in 2025 can employ several key strategies. First, evaluate exposures by collaborating with a broker to assess risks and uncover opportunities for securing comprehensive yet affordable insurance coverage.

Next, leverage rate stability in the insurance market by refining your risk management practices, making your properties more attractive to insurers and securing favorable terms.

Finally, adapting to shifting demand is crucial; targeting investments in high-growth sectors such as multifamily housing and logistics properties can help capitalize on emerging opportunities and drive profitability.

Preparedness for emerging risks and adapting to new threats

The real estate industry must prepare for an evolving risk landscape in 2025. Climate change continues to intensify natural disasters, while litigation risks, including ADA compliance lawsuits and cybersecurity threats, are on the rise.

Third-party litigation financing is a growing concern, as it enables lawsuits that target real estate operators for perceived regulatory noncompliance. Cyberattacks also pose significant risks, with potential for both financial losses and reputational harm.

Effective risk preparedness in 2025 hinges on adopting best practices that address evolving threats and regulatory demands. Developing a robust Enterprise Risk Management (ERM) framework is essential for identifying and mitigating risks across all aspects of operations.

Staying ahead of compliance requirements, such as those outlined in the Americans with Disabilities Act, can help real estate owners and operators avoid costly litigation.

Additionally, strengthening cybersecurity through investments in advanced technology and employee training is critical for protecting against data breaches and other digital threats, ensuring both operational continuity and reputation management.

Building resilience through rate stabilization

After years of sharp increases, 2025 is set to bring relief to property insurance costs. Stabilization in the market is expected as insurers restore profitability and competition increases. Properties with strong risk management programs could even see premium reductions.

However, challenges remain for properties in disaster-prone areas. Events like convective storms and wildfires drove $42 billion in insured losses in the first half of 2024, highlighting the importance of proactive risk management.

Building resilience in 2025 requires a proactive approach to property management and risk mitigation. Maintaining properties in top condition, particularly by ensuring they are built or upgraded to withstand natural disasters, is a key factor in attracting favorable insurance terms.

Accurate property valuations are equally important, as they help avoid disputes with insurers and ensure fair premium assessments. Additionally, implementing targeted mitigation plans, such as addressing vulnerabilities like water damage risks, can significantly enhance a property’s insurability and overall resilience to potential threats.

Practical steps for success in 2025

Navigating the complexities of 2025 will require a thoughtful approach to risk management, workforce vitality and financial planning. By partnering with industry experts, real estate owners and operators can safeguard their assets, support their employees and seize new growth opportunities.

Five key considerations for the new year include:

 Safety first: Emphasize safety training and regulatory compliance to reduce exposure to nuclear verdicts.

  1. Monitor loss trends: Use analytics to address root causes of claims and present a strong case to insurers.
  2. Risk management: Adopt proactive strategies, including higher deductibles and alternative risk transfer vehicles, to manage rising costs.
  3. Enhance workforce benefits: Personalized benefits can foster a more engaged and productive workforce.
  4. Communicate with brokers: Maintain transparency about operational changes to secure optimal insurance terms.

Thriving amid uncertainty

By staying informed and adaptable, real estate stakeholders can turn challenges into opportunities in 2025. From stabilizing costs to fostering resilience, the new year offers pathways to sustained growth and success.

 About the author

James “Chip” Stuart

James “Chip” Stuart is the corporate Chief Sales Officer and Practice Leader for global insurance brokerage Hub International’s real estate specialty in North America.

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