Modern Renters Crave Easy, Digital Experiences, AppFolio Research Finds

Rhea-AI Summary

AppFolio's 2025 Renter Preferences Report, based on a survey of 2,000+ U.S. renters, reveals key insights about modern renter preferences. The study shows that residents who are satisfied with their property manager are 73% more likely to renew leases. Despite digital trends, 39% of renters still use traditional payment methods, with 59% reporting no online payment options. The report highlights that 86% of renters value online rent payment options, while 72% prioritize rent reporting and rewards programs. Moving challenges affect 75% of renters, yet only 30% have access to digital move-in tools. The study also reveals significant generational differences, with Gen Z projected to become the largest renter demographic by 2030. This generation shows stronger preferences for digital services, with 71% valuing digital move-in services and 77% prioritizing flexible rent options.

Positive

• Research indicates high potential for growth in digital payment adoption, with 86% of renters valuing online rent payment options
• Strong correlation between property manager satisfaction and lease renewals (73% more likely to renew)
• Clear market opportunity in digital move-in services, with 80% of users finding them beneficial

Negative

• 39% of renters still using traditional payment methods due to lack of digital options
• Only 30% of renters have access to digital move-in tools despite high demand
• 75% of renters face challenges during move-in process, indicating service gaps

Report reveals growing appetite for services that deliver convenience

Property managers must elevate the resident experience to attract renters amid rising competition

SANTA BARBARA, Calif., May 22, 2025 (GLOBE NEWSWIRE) --  AppFolio (NASDAQ:APPF), the technology leader powering the future of the real estate industry, today released its 2025 AppFolio Renter Preferences Report. Drawing on insights from over 2,000 U.S. renters, the report outlines key strategies for property managers to gain an edge in a competitive market shaped by rising costs, higher vacancies, and slower rent growth.

Residents Want Services That Offer Convenience in Their Daily Lives
Today’s renters expect property managers to offer a digital, consumer-friendly experience similar to what they receive from retailers and on-demand applications. However, the availability of these services – like renter rewards programs, security deposit alternatives, and prompt maintenance support – is still limited, presenting a gap for property managers to fill.

• Residents who are satisfied with their property manager are 73% more likely to plan to renew their lease. Similarly, those who are satisfied with maintenance are 71% more likely to say they are planning to renew their lease, and 86% of renters who are satisfied with communication about maintenance issues are also satisfied with their property manager.
• Despite online payments becoming more common, 39% of renters still pay rent through traditional methods like cash or check, with 59% of those renters reporting that online payments are not available to them.
• When considering a new rental, renters report the most valuable financial services to them are online rent payment (86%), rent reporting (72%), renter rewards programs (72%), flexible rent (69%), and security deposit alternatives (65%).
  
  

Modernizing the Moving Experience Is an Untapped Opportunity
Moving is a highly stressful part of the rental journey and while digital move-in services can greatly reduce this burden, they remain underutilized. Those who use them overwhelmingly find them helpful.

• While 35% of renters plan to move from their current housing, primarily seeking better living spaces or lower rent, 44% of those choosing to renew their leases cite the high cost of moving as their main reason for staying.
• Three-fourths of renters have experienced challenges during the move-in process, with setting up utilities being reported as the top issue.
• Fewer than 30% of renters have completed their move-in tasks through digital tools, yet 80% of those who have used them found the digital tools beneficial.
  
  

Understanding Generational Differences Is Key to Meeting and Exceeding Resident Expectations
Gen Z is on track to become the largest renter demographic by 2030. With accessing homeownership continuing to be a challenge, many see rental homes as long-term residences and expect homes that use technology to improve everyday life.

• 71% of Gen Z renters consider digital move-in services important, compared to 58% of Millennials, 53% of Gen X, and 34% of Baby Boomers.
• When evaluating a new rental, 69% of Gen Z are interested in smart home technology, compared to 58% of Millennials, 50% of Gen X, and 46% of Baby Boomers.
• 77% of Gen Z renters prioritize flexible rent, in contrast to 67% of Millennials, 49% of Gen X, and 37% of Baby Boomers.
  

"Residents expect fast, easy, and personalized experiences—and our report shows that demand is only growing,” said Stacy Holden, Vice President, Industry Principal at AppFolio. “Property managers that meet and exceed resident expectations will not only address current gaps in service but also attract new renters and build stronger relationships with existing residents.”

Explore the top trends defining today’s rental landscape and download the 2025 AppFolio Renter Preference Report.

Survey Methodology
AppFolio commissioned a survey of 2,002 U.S. renters ages 18 and up, which was conducted from January 24–30, 2025.

About AppFolio
AppFolio is the technology leader powering the future of the real estate industry. Our innovative platform and trusted partnership enable our customers to connect communities, increase operational efficiency, and grow their business. For more information about AppFolio, visit appfolio.com.

For more information, please contact:
AppFolio
appfolio@missionnorth.com

FAQ

What are the key findings of AppFolio's 2025 Renter Preferences Report?

The report reveals that satisfied residents are 73% more likely to renew leases, 39% still use traditional payment methods, and 86% value online rent payment options. It also shows Gen Z will be the largest renter demographic by 2030, with strong preferences for digital services.

How does property manager satisfaction affect lease renewals according to AppFolio (APPF)?

According to the report, residents who are satisfied with their property manager are 73% more likely to plan to renew their lease. Additionally, those satisfied with maintenance are 71% more likely to renew.

What percentage of renters still use traditional payment methods in 2025?

39% of renters still pay rent through traditional methods like cash or check, with 59% of those renters reporting that online payments are not available to them.

What are the most valuable financial services for renters according to AppFolio's 2025 report?

The most valued financial services are online rent payment (86%), rent reporting (72%), renter rewards programs (72%), flexible rent (69%), and security deposit alternatives (65%).

How do Gen Z renters differ in their preferences compared to other generations?

Gen Z shows stronger preferences for digital services, with 71% valuing digital move-in services, 69% interested in smart home technology, and 77% prioritizing flexible rent options, significantly higher than other generations.