Industries such as retail, banking, transportation and food service have undergone major digital transformations in recent years by using new technologies to improve the consumer experience. As a result, today’s consumers now expect the same digital experience in all aspects of their lives, including rental management.
Gen Z employers in particular expect a digital first experience, and have emerged as a powerful consumer base within the recruitment market. Meanwhile, there has been a huge increase in the construction of new units: almost one million new apartments are expected to be available by 2025, according to a market analysis using data from the US Census Bureau. This means that the competition to attract and retain large residents will be intense.
All of these factors make it important for property managers to improve the resident experience and stand out in the market with resident-facing technology. In fact, a recent report found that employers who are satisfied with technology are 17% more likely to plan a move.
Here are three areas that are ripe for digitization:
Simplifying the login process
What do consumer technology spaces like online banking, fitness trackers and streaming services all have in common? First: a central user portal that stores important information and helps users complete common tasks.
Within the property management space, these online portals can be used to increase resident experience while also creating operational efficiency. For example, tenant-facing portals can simplify the move-in process—which has historically been difficult for residents—by helping tenants sign a lease, pay their security deposit and set up utilities. 95 percent of residents who use an online portal for these jobs find it helpful, according to the Employer Preference Report. On the management side, these sites speed up the lead-to-lease process and free up property managers to facilitate these tasks directly. That means residents can move into their properties faster while property managers have more time to spend on business activities.
Fintech meets proptech
Payments and financial services are two other areas where technology inspired by the consumer space can benefit residents and property managers. Digital payments have been the norm for years in places like shops and restaurants. Nine out of ten consumers used some form of digital payment in the past 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 Employer Preferences Report found that tenants who are satisfied with financial services are 21% more likely to plan to move. It also found that the majority of Gen Z (90%) and Millennial (87%) employers consider online payments very important or important, compared to 67% of Boomers.
Alternatives to security deposits, flexible tenancies and tenant reward schemes have become popular with residents in recent years. Property managers can use these tools to stand out in a competitive market.
Fast, mobile-first communication
Consumers are used to communicating and receiving information quickly on their mobile devices. Because speed is key, many industries have introduced chatbots and AI to improve customer interactions.
Within property management, strong communication is directly linked to resident satisfaction and retention. The Tenant Preferences Report found that tenants who are satisfied with their property manager’s communication methods are 25% more likely to plan to move and are four times more likely to recommend their property manager than unsatisfied tenants.
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 emergency maintenance requests around the clock, to using generative AI to quickly document 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 control the flow of messages and requests.
Technology as a difference
It is clear that property managers have a significant opportunity to double down on the occupants’ experience through innovation. Doing so will create value in the form of both efficiency and competitive differentiation.
In a market where renters have many options for accommodation and small renters make up the majority of the market, technology is an obvious advantage. By looking at consumer technology trends that are already defining retail, fintech and restaurant spaces, property managers can delight current and prospective tenants while simplifying administrative tasks for their teams.
Matthew Kaddatz is senior product director 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: [email protected].
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