Renters surveyed said they are happy with their property manager, but only 50 percent plan to renew their expiring lease this year, according to AppFolio.
The top three reasons that unsatisfied renters are considering moving are for a better apartment/house (63 percent), lower rent (49 percent) and a better property manager (45 percent). Millennials say the may reason they are moving is to pay less.
In the survey of 1,000 renters for the 2023 Property Manager Renter Preferences report, AppFolio found that 66 percent of renters reported that they are satisfied with their property manager – up from 55 percent from last year’s study, but many still plan to move.
“This reveals a need for property managers to better understand renter expectation,” the report says.
“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,” Stacy Holden, Senior Director, Industry Principal at AppFolio, said in a release.
“Today’s renter preferences will help shape the housing of tomorrow, so it’s important for property managers to up level their service now through tech and other thoughtful offerings. This will help rental teams retain current residents and entice others.”
Key takeaways from the 2023 Property Manager Renters 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 percent 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 percent of renters say a property manager’s reputation on review sites is important when evaluating a new rental.
- 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 percent) 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 percent would like their property manager to offer the option according to the renters survey.
- Younger demographics are more likely to embrace online payments. Gen Z (65 percent) and Millennials (61 percent) are most likely to pay their rent online (compared to 40 percent of Gen X and 46 percent 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 percent of Gen Z renters are satisfied with their property manager (compared to 64 percent of Millennials, 66 percent of Gen X and 75 percent of Boomers).
- There’s room for growth when it comes to retaining younger residents. Only one-third (35 percent) of Gen Z renters are likely to renew their lease (compared to 44 percent of Millennials, 53 percent of Gen X and 67 percent of Boomers).
- Why are Millennials leaving? They want to pay less. Millennials are the most price sensitive, with 51 percent citing lower rent as their reason for moving (compared to 38 percent of Gen Z and Gen X).