Industries such as retail, banking, transportation and foodservice have undergone massive digital transformation in recent years by leveraging new technologies to improve the consumer experience. As a result, today’s consumers now expect the same seamless digital experiences in all areas of their lives, including rental management.
Generation Z renters in particular expect digital-first experiences and have grown into a powerful consumer base in the rental market. Meanwhile, there is a surge in new apartment construction, with nearly a million new apartments expected to be available by 2025, according to a market analysis based on data from the US Census Bureau. This means competition to attract and retain great residents will be fierce.
All of these factors make it critical for property managers to enhance the resident experience and differentiate themselves in the market with resident-focused technology. In fact, a recent report shows that tenants who are satisfied with technology are 17% less likely to plan a move.
Here are three areas ripe for digitalization:
Simplifying the moving process
What do consumer technology spaces like online banking, fitness trackers and streaming services all have in common? For starters: a centralized user portal that contains important information and helps users perform common tasks.
Within the property management space, these online portals can be used to enhance the resident experience while creating efficiencies for operators. For example, resident-facing portals can ease the moving process – which historically hasn’t been easy for residents – by helping tenants sign the lease, pay their deposits and set up utilities. According to the Renter Preferences Report, 95 percent of residents who used an online portal for these tasks found it useful. On the management side, these portals accelerate the lead-to-lease process and directly relieve property managers of these tasks. This means that residents settle into their space more quickly, while property managers can spend more time on business operations.
Fintech meets proptech
Payments and financial services are two other areas where consumer space-inspired technology can benefit both residents and property managers. Digital payments have been the norm for years in shops and restaurants, for example. Nine out of ten consumers used some form of digital payment last year, including online payments, digital wallets and in-app purchases. In the meantime, almost 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 shows that tenants who are satisfied with financial services are 21% less likely to plan a move. The survey also found that the vast majority of Generation Z (90%) and Millennial (87%) renters consider online payments very important or important, compared to 67% of boomers.
Alternatives to security deposits, flexible rent and tenant incentive programs have become popular among residents in recent years. Real estate managers can use these tools to differentiate themselves in an increasingly competitive market.
Fast, mobile-first communication
Consumers are used to communicating and receiving information directly from their mobile devices. Since speed is crucial, many industries have introduced chatbots and AI to improve customer interactions.
Within property management, strong communication is directly related to resident satisfaction and retention. The Renter Preferences Report shows that tenants who are satisfied with their property manager’s communication methods are 25% less likely to schedule a move and almost four times more likely to recommend their property managers than tenants who are dissatisfied.
Here too, property managers can use technology to their advantage – this time in the form of AI. Many owners and operators are using AI to improve the speed and efficiency of communicating with residents. Use cases range from responding to urgent maintenance requests 24 hours a day, to using generative AI to quickly create important updates for residents, to assisting with lease renewals. This is a win-win situation for everyone involved. Residents receive information quickly and consistently, while property managers can better manage the constant flow of messages and requests.
Technology as a differentiator
It’s clear that property managers have a significant opportunity to double the resident experience through innovation. Doing this creates value in the form of both operational efficiency and competitive differentiation.
In a market where renters have more options for where to live and younger renters make up a large portion of the market, technology is a clear advantage. By looking at the consumer technology trends that are already defining the retail, fintech and restaurant spaces, property managers can delight current and future residents while easing administrative burdens on their own teams.
Matthew Kaddatz is senior product director at AppFolio.
This column does not necessarily reflect the opinion of HousingWire’s editorial staff and its owners.
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