EP288: Multifamily Apartments is Finally Entering the Tech Revolution
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Guess what, multifamily operators?
Itās the end of 2024, and weāre finally stepping boldly into the tech revolution.
For far too long, our industry has been stuck in the pastāmanaging properties and residents with outdated systems and analog tools.
The result?
Struggles with renter retention, rent growth, and revenue.
But hereās the plot twist: things are changing. šš
This isnāt just about shiny apps or cool gadgetsāitās about survival.
Embracing technology isnāt optional anymoreāitās the game-changer youāve been waiting for.
Why?
Because these tools are the secret to keeping your best residents happy, engaged, and loyal.
And when that happens?
Your bottom line wins, too. š
The Data Doesnāt Lie: Retention Is the Key to Success
Letās talk about the numbers.
Renewing leasesāor as we like to call it, āclosing the back doorāāis critical to protecting rental income.
Why?
Because high turnover = higher costs + missed revenue opportunities.
Hereās the proof ā¬
āļø From 2010 to 2019, lease renewals steadily climbed from 50.7% to 52.8%.
āļø By 2022, pandemic lockdowns pushed retention rates to record highs of 57%.
Retention isnāt just about keeping residents happyāitās about minimizing costly downtime.
Take unit turnover, for example:
ā« Turning a unit can take 1ā3 weeks, costing you income during that period.
ā« Plus, thereās the expense of updating units to meet market expectations.
Letās not forget the nightmare of permanently down unitsāspaces that drain resources without generating revenue.
Todayās Renters Expect More Than a Roof Over Their Heads
If youāre still offering the same old services, itās time to step it up. Todayās renters are demanding modern, tech-driven experiences that make their lives easier.
Hereās what 97% of renters say makes them more likely to renew or choose a property:
⨠Loyalty programs that reward on-time rent payments.
⨠All-in-one apps for lease management and payments.
⨠Discounts or perks from local businesses.
⨠Flexible payment options (weekly, bi-weekly, or monthly schedules).
The takeaway?
Convenience, rewards, and flexibility are no longer ānice-to-haves.ā
Theyāre must-haves.
Moving Is PainfulāSo Make Staying Easier
Did you know moving is ranked as one of lifeās most stressful events?Ā Ā š
Hereās what renters say frustrates them most about moving:
ā”ļø Coordinating lease agreements and move-in documentation.
ā”ļø Managing payments and logistics.
ā”ļø Tracking the endless to-do list.
But hereās the good news: you can fix this.
A streamlined moving experience boosts retention, builds goodwill, and increases word-of-mouth referrals.
Renters are 97% more likely to renew if you offer services like:
š¤ Setting up utilities and internet.
š¤ Partnering with reliable moving companies.
š¤ Consolidating payments and simplifying logistics.
The Financial Impact of Moving
Moving isnāt just stressfulāitās expensive.
On average, renters spend $6,500 on moving-related expenses. For high-income households, that number can skyrocket to $15,000.
Hereās what renters spend it on:
šµ Temporary storage and new furniture.
šµ Moving services (trucks, boxes, movers).
If youāre setting rent renewal rates, factor in these costs. They can be a powerful deterrent to renters who might otherwise consider moving.
Loyalty Programs: A Huge Missed Opportunity
Did you know 96% of renters belong to loyalty programs for airlines or credit cards, but only 16% are part of apartment-specific rewards programs?
Renters want rewards they can actually use, like:
š° Rent credits.
š°Groceries and dining experiences.
š°Personal care products.
Hereās your chance to stand out. A well-designed loyalty program can turn residents into long-term tenants.
Flexible Payment Options = More Happy Renters
Rent is the largest monthly expense for most renters. And yet, 93% of renters prefer flexible payment schedules.
Why? Because many face ongoing financial challenges:
š 77% struggle with poor credit.
š 85% carry significant debt.
Offering flexibilityāweekly or bi-weekly payments, for exampleācan ease their financial burden.
For Class B and C properties, this is especially critical.
Even if Class A properties donāt face delinquency issues, flexibility builds goodwill.
Tech-Driven Solutions to the Rescue
Tech is here to save the day, with platforms designed to enhance the renter experience:
Loft Living by RealPage
A one-stop shop for:
1ļøā£ Streamlined lease signing and move-in processes.
2ļøā£ Flexible payment options.
3ļøā£ Loyalty rewards for on-time rent payments.
Bilt Rewards
Turns rent payments into rewards with perks like:
ā“ļø Partnerships with Amazon, Emirates, and British Airways.
ā“ļø Discounts at local businesses like gyms and restaurants.
ā“ļø Customizable rewards programs for early lease renewals and referrals.
Other Options to Explore
ā PiƱata: Cashback and gift cards for on-time rent payments.
ā Stake: Early paycheck access and online payment fee coverage.
The Bottom Line
Itās time to evolve.
Modern renters expect convenience, flexibility, and rewardsāand the operators who meet these demands will win.
By embracing tech-driven solutions, loyalty programs, and flexible payment options, you can:
āļø Reduce turnover.
āļø Increase resident satisfaction.
āļø Boost your long-term profitability.
The multifamily tech revolution is here, and the only question is: are you ready to join it?
Letās make 2025 the year we elevate the renter experienceāand our bottom lines. āØ
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