EP288: Multifamily Apartments is Finally Entering the Tech Revolution

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Guess what, multifamily operators?

It’s the end of 2024, and we’re finally stepping boldly into the tech revolution.

For far too long, our industry has been stuck in the past—managing properties and residents with outdated systems and analog tools.

The result?

Struggles with renter retention, rent growth, and revenue.

But here’s the plot twist: things are changing. 😍😍

This isn’t just about shiny apps or cool gadgets—it’s about survival.

Embracing technology isn’t optional anymore—it’s the game-changer you’ve 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. 🙌

The Data Doesn’t Lie: Retention Is the Key to Success

Let’s talk about the numbers.

Renewing leases—or as we like to call it, “closing the back door”—is critical to protecting rental income.

Why?

Because high turnover = higher costs + missed revenue opportunities.

Here’s the proof ⏬

✔️ From 2010 to 2019, lease renewals steadily climbed from 50.7% to 52.8%.

✔️ By 2022, pandemic lockdowns pushed retention rates to record highs of 57%.

Retention isn’t just about keeping residents happy—it’s about minimizing costly downtime.

Take unit turnover, for example:

⚫ Turning a unit can take 1–3 weeks, costing you income during that period.

⚫ Plus, there’s the expense of updating units to meet market expectations.

Let’s not forget the nightmare of permanently down units—spaces that drain resources without generating revenue.

Today’s Renters Expect More Than a Roof Over Their Heads

If you’re still offering the same old services, it’s time to step it up. Today’s renters are demanding modern, tech-driven experiences that make their lives easier.

Here’s 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 “nice-to-haves.”

They’re must-haves.

Moving Is Painful—So Make Staying Easier

Did you know moving is ranked as one of life’s most stressful events?  👀

Here’s what renters say frustrates them most about moving:

➡️ Coordinating lease agreements and move-in documentation.

➡️ Managing payments and logistics.

➡️ Tracking the endless to-do list.

But here’s 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:

🤍 Setting up utilities and internet.

🤍 Partnering with reliable moving companies.

🤍 Consolidating payments and simplifying logistics.

The Financial Impact of Moving

Moving isn’t just stressful—it’s expensive.

On average, renters spend $6,500 on moving-related expenses. For high-income households, that number can skyrocket to $15,000.

Here’s what renters spend it on:

💵 Temporary storage and new furniture.

💵 Moving services (trucks, boxes, movers).

If you’re 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:

💰 Rent credits.

💰Groceries and dining experiences.

💰Personal care products.

Here’s 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:

👉 77% struggle with poor credit.

👉 85% carry significant debt.

Offering flexibility—weekly or bi-weekly payments, for example—can ease their financial burden.

For Class B and C properties, this is especially critical.

Even if Class A properties don’t 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:

1️⃣ Streamlined lease signing and move-in processes.

2️⃣ Flexible payment options.

3️⃣ Loyalty rewards for on-time rent payments.

Bilt Rewards

Turns rent payments into rewards with perks like:

✴️ Partnerships with Amazon, Emirates, and British Airways.

✴️ Discounts at local businesses like gyms and restaurants.

✴️ Customizable rewards programs for early lease renewals and referrals.

Other Options to Explore

⭕ Piñata: Cashback and gift cards for on-time rent payments.

⭕ Stake: Early paycheck access and online payment fee coverage.

The Bottom Line

It’s time to evolve.

Modern renters expect convenience, flexibility, and rewards—and the operators who meet these demands will win.

By embracing tech-driven solutions, loyalty programs, and flexible payment options, you can:

✔️ Reduce turnover.

✔️ Increase resident satisfaction.

✔️ Boost your long-term profitability.

The multifamily tech revolution is here, and the only question is: are you ready to join it?

Let’s make 2025 the year we elevate the renter experience—and our bottom lines. ✨