What Renters Really Want According to the Data

Every year, AppFolio publishes the Renter Preferences report to get inside the minds of multifamily renters across the country. We're curious about what makes them tick, what they love, what they're looking for in their next place, how they feel about their property managers, and why

Why do we bother with all this? Because we want to help property management companies like yours really understand their residents

When you know what renters want, you can make smarter decisions about everything from which properties to invest in (if you’re an owner-operator) to how to keep your current renters happy. Plus, as you very well know, the multifamily rental market is always changing. What renters wanted last year might not be what they're after now. So, we keep our finger on the pulse with this report, giving you the latest insights to stay ahead of the game. It's all about helping you give renters what they really want, so everyone wins

Here and now, the multifamily rental market is changing, due to cyclicality and (literal) new developments The busy summer leasing season is now behind us, and on the horizon is an influx of newly constructed multifamily buildings. With slower rent growth in the short term, and more competition in the longer term, it’s more important than ever to prioritize renter preferences and satisfaction as a way to maintain occupancy.

Surveying over 2,000 U S renters, the AppFolio Renter Preferences Report provides comprehensive data and actionable insights to help keep your units filled in a changing market Here’s a small taste of what you’ll find in the report.

Satisfaction With Property Management

While most renters are satisfied with their property management company, there is still plenty of opportunity for improvement Elevating resident satisfaction is crucial for retention, particularly as the market becomes more competitive as newly constructed properties begin lease-up Property managers who prioritize resident experience are better positioned to maintain occupancy rates and weather increased competition.

Over the next year, more than one-third of renters anticipate relocating, with their property management experience significantly influencing this decision Notably, renters who express satisfaction with their property managers demonstrate a 30% lower likelihood of planning to move compared to their unsatisfied counterparts

Satisfaction With Communication and Maintenance

Satisfaction with communication emerges as a pivotal factor in shaping overall resident satisfaction with property management, while also significantly influencing move-out decisions.

The data reveals a striking correlation: renters who express satisfaction with communication are 25% less likely to be planning to move Moreover, these satisfied renters are four times more likely to recommend their property managers compared to those who are not satisfied with their property management communication practices.

As with communication, maintenance is important to renters, as it directly impacts their quality of life, safety, and comfort According to our data, those satisfied with maintenance are 25% less likely to say they are planning to move and three times more likely to recommend their property management company.

In this regard, I always say “If you have no goal, then you have one goal: stop bad reviews ” How can you do that?

One way is after a service call, or at moveout, send the resident a one-question email asking, “Were you satisfied? Why or why not ” It doesn’t have to be a sophisticated survey. And if you give your renters the opportunity to vent to you, then they're a lot less likely to take it all the way to the review sites.

Satisfaction With Financial Services

Property management companies can significantly boost renter satisfaction through their financial service offerings. Our research indicates that while the majority of renters value these financial services, they are currently available to only a small fraction of renters This disparity between demand and availability presents a clear opportunity for property managers to enhance resident satisfaction and differentiate their offerings in the market

According to the survey, younger renters, who make up the lion’s share of the renter population in the U S , place even more importance on these financial services, and the importance of these services is significantly higher among users. This suggests that as the availability of these services increases and more renters use them, it will be more important for property managers to offer these services

Satisfaction With Technology

Similar to financial services, resident-facing technologies (such as resident portals) are also important services to offer renters Online portals are important to most renters (and this is even higher among younger renters), but this technology is available to just 60% of them

The technology of an online portal was helpful to 95% of renters who used one to complete move-in tasks, such as signing the lease, paying a security deposit, setting up utilities, and buying renters insurance. Signing the lease and paying the security deposit were by far the most common move-in tasks completed via an online portal.

It’s not just residents who benefit from completing these essential move-in tasks through their online portal. For property managers, it alleviates the burden of being a hands-on facilitator, making the process of settling new residents into their homes more efficient

On that note, be on the lookout for enhanced resident onboarding tools Imagine a dashboard where you can track every incoming resident’s move-in status and automate many of the things you know they’re going to call and ask about over the next six weeks things like: “When do I get my key?”; “What day should I move in?”; “What time of day?”; “Who do I talk to?”; “Where do I go?”; “Is there a service elevator?” Soon, you’ll be able to automate all of that in a step by step guide, almost like a pizza tracker You’ll be able to guide your incoming residents through the process and get them ready for the move, preemptively letting them know how to set up utilities, for example

We invite you to check out the full Renter Preferences Report for data-backed insights on how to meet and exceed renter expectations. You can find it here.

Author: Steven Biringer VP, Strategy