Industries like retail, banking, transportation and food service have undergone massive digital transformation in recent years by leveraging new technologies to enhance consumer experience. As a result, today’s consumers now expect the same seamless digital experiences in all areas of their lives, including rental management.
Gen Z renters in particular expect digital-first experiences, and have emerged as a powerful consumer base within the rental market. Meanwhile, there’s been a surge in the construction of new units: nearly one million new apartment units are projected to be available by 2025, according to a market analysis using data from the U.S. Census Bureau. This means the competition to attract and retain great residents will be fierce.
All of these factors make it crucial for property managers to boost resident experience and stand out in the market with resident-facing technology. In fact, a recent report found that renters who are satisfied with technology are 17% less likely to plan a move.
Here are three areas that are ripe for digitization:
Simplifying the move-in process
What do consumer tech spaces like online banking, fitness trackers and streaming services all have in common? For one thing: a centralized user portal that houses key information and helps users complete common tasks.
Within the property management space, these online portals can be used to boost resident experience while also creating efficiencies for operators. For example, resident-facing portals can ease the move-in process—which has historically not been easy for residents—by helping renters sign the lease, pay their security deposit and set up utilities. Ninety-five percent of residents who used an online portal for these tasks found it helpful, according to the Renter Preferences Report. On the management side, these portals speed up the lead-to-lease process and relieve property managers of having to facilitate these tasks directly. That means residents settle into their space more quickly while property managers have more time to spend on business operations.
Fintech meets proptech
Payments and financial services are two other areas where technology inspired by the consumer space can benefit both residents and property managers. Digital payments have been the norm for years in spaces such as retail and restaurants. Nine out of ten consumers used some form of digital payment last year, including online payments, digital wallets and in-app purchases. Meanwhile, nearly two-thirds of smartphone users use an app to manage their finances.
Property managers should look to replicate this trend, as the Renter Preferences Report found that renters who are satisfied with financial services are 21% less likely to plan a move. It also found that the vast majority of Gen Z (90%) and Millennial (87%) renters consider online payments very important or important, compared to 67% of Boomers.
Security deposit alternatives, flexible rent and renter rewards programs have become popular among residents in recent years. Property managers can use these tools to stand out in an increasingly competitive market.
Fast, mobile-first communication
Consumers are used to communicating and receiving information instantly from their mobile devices. Because speed is key, many industries have introduced chatbots and AI to improve customer interactions.
Within property management, strong communication ties directly back to resident satisfaction and retention. The Renter Preferences Report found that 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.
Again, property managers can use technology to their advantage here— this time, in the form of AI. Many owners and operators are using AI to improve the speed and efficiency of communication with residents. Use cases range from responding to urgent maintenance requests around the clock, to using generative AI to quickly draft important updates for residents, to assisting with lease renewals. This is a win-win for everyone involved. Residents receive information quickly and consistently while property managers can better manage the constant influx of messages and requests.
Technology as a differentiator
It’s clear that property managers have an important opportunity to double down on resident experience through innovation. Doing so will create value in the form of both operational efficiency and competitive differentiation.
In a market where renters have more options around where to live and younger renters make up a large portion of the market, technology is a clear advantage. By looking to the consumer tech trends that already define the retail, fintech and restaurant spaces, property managers can delight current and prospective residents while easing administrative tasks for their own teams.
Matthew Kaddatz is the senior director of product at AppFolio.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
To contact the editor responsible for this piece: zeb@hwmedia.com.