New AppFolio Survey Finds Property Managers Must Innovate to Meet Modern Renter Expectations

Rhea-AI Summary

AppFolio's 2024 Property Manager Renter Preferences Report reveals key insights for property managers in a competitive rental market. Nearly one million new apartment units are expected by 2025, highlighting the need for innovation to meet modern renter expectations. Key findings include:

1. 30% of renters search for rentals on property websites, emphasizing the importance of a strong online presence.
2. 95% of respondents value clear and transparent listings.
3. 76% of renters expect responses within 24 hours.
4. Gen Z and Millennials prioritize online portals and smart home technology.
5. 46% of respondents intend to renew their current lease.
6. Satisfied renters are 25% less likely to move and more likely to recommend their property managers.

The report underscores the critical role of technology in enhancing resident experiences and operational efficiency for property managers.

Transparent property listings, smart technology and effective communication are critical in attracting and retaining happy, long-term renters

SANTA BARBARA, Calif., Aug. 22, 2024 (GLOBE NEWSWIRE) -- AppFolio (NASDAQ: APPF), the technology leader powering the future of the real estate industry, today released its 2024 AppFolio Property Manager Renter Preferences Report. For property managers looking to gain an edge in a competitive rental market, this report of more than 2,000 U.S. renters uncovers key insights into their shifting motivations and behaviors, emphasizing the critical role of technology in the resident experience.

Nearly one million new apartment units are projected to be available by 2025, signaling an increasingly competitive market for owners and property managers, according to a market analysis by AppFolio using data from the U.S. Census Bureau. With more choices available to renters, AppFolio’s report sheds light on the challenges and priorities that property managers must address head-on to meet renter expectations throughout their resident journey. Highlights include:

The marketing and leasing process are key

Nearly one-third of renters surveyed (30%) search for new rentals on property or property manager’s websites – a top three resource alongside major internet listing services. This finding underscores the importance of a strong online presence for property managers.

• A clear and transparent listing is ranked as the most important factor that renters consider, with 95% of respondents saying they view it as very important or important.
• 88% of renters describe a property manager’s reputation on review sites as a very important or important aspect of evaluating a new rental.
• Furthermore, more than three-quarters (76%) of renters expect to hear back about a listing within 24 hours of contacting the owner or property manager, while 27% expect a response within a few hours.
  

Meeting the needs of different generations

By 2030, Gen Z is expected to become the largest demographic of renters in America, making it essential for property managers to continue investing in modern technology solutions.

• 81% of Gen Z and 77% of Millennials surveyed expressed the importance of having access to an online resident portal or mobile app for their unit, compared to 52% of Baby Boomers.
• Most younger renters (66% Gen Z, 60% Millennials) want smart home technology, like Wi-Fi enabled thermostats, lights and locks, compared to 38% of Boomers.
• When it comes to making payments, 90% of Gen Z and 87% of Millennial renters consider online payment options very important or important, compared to 67% of Boomers.
  

Catering to long-term renters with effective communication and service

With a growing number of residents planning to rent for longer, there is increased demand for rental housing that fits their long-term needs. Effective communication and prompt maintenance services play a pivotal role in attracting and retaining these renters, as residents who are satisfied in those areas are more likely to renew their leases and recommend their property managers to prospective renters.

• Nearly half (46%) of respondents said they intend on renewing their current lease, with about one in four (23%) reporting this was because they are unable to purchase a home.
• Renters who are satisfied with their property manager’s communication methods are 25% less likely to be planning a move and nearly four times more likely to recommend their property managers than renters who are unsatisfied.
• Similarly, those satisfied with maintenance are 25% less likely to say they are planning to move, and nearly three times more likely to recommend their property management company.
  

“This report highlights the undeniable impact that technology has in meeting renter expectations,” said Stacy Holden, senior director and industry principal at AppFolio. “Bottom line, great resident experiences today are all about timely and clear communication, while having access to the information you need at your fingertips. By leveraging the latest innovations, including AI-powered leasing solutions, smart home technology, and easy-to-use online resident portals, property managers can create win-win scenarios for their business. These tools not only maximize convenience and satisfaction for their residents, but also increase their operational efficiency, enabling them to thrive in the current market conditions.”

For a more in-depth look at the key trends shaping the rental market, download the 2024 AppFolio Property Manager Renter Preferences Report.

Survey methodology
AppFolio surveyed 2,105 U.S. renters ages 18 and up from May 13, 2024 to May 22, 2024.

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:
Mission North for AppFolio
appfolio@missionnorth.com

FAQ

What are the key findings of AppFolio's 2024 Renter Preferences Report for APPF stock?

The report reveals that 30% of renters search on property websites, 95% value transparent listings, and 76% expect responses within 24 hours. It also highlights the importance of online portals and smart home technology for younger renters, and shows that 46% of respondents plan to renew their leases.

How many new apartment units are projected to be available by 2025 according to AppFolio's APPF market analysis?

According to AppFolio's market analysis using U.S. Census Bureau data, nearly one million new apartment units are projected to be available by 2025, indicating an increasingly competitive rental market.

What percentage of Gen Z and Millennial renters consider online payment options important for APPF's property management solutions?

The survey shows that 90% of Gen Z and 87% of Millennial renters consider online payment options very important or important, highlighting the need for digital solutions in property management.

How does renter satisfaction impact lease renewals and recommendations according to AppFolio's APPF report?

The report indicates that renters who are satisfied with their property manager's communication and maintenance are 25% less likely to move and up to four times more likely to recommend their property managers to others.