2025 Renter Trends - What Property Managers Need to Know to Stay Competitive
As we step into 2025, the rental market continues to evolve, and staying in tune with renter preferences has become more crucial than ever. With nearly 1 million new apartment units expected to be available by 2025, the competition for renters is intensifying. Property managers need to understand the motivations behind renters’ decisions to move or renew their leases in order to stay ahead of the curve.
Insights from the 2024 AppFolio Renter Preferences Report shed light on key trends and preferences, offering data-driven strategies to improve tenant satisfaction and retention. Here’s what you need to know to adapt your approach and stand out in today’s competitive rental market.
Why Renters Move and Stay: Key Drivers Behind Their Decisions
Understanding why renters decide to move or stay in their current homes is crucial for tailoring your property offerings and improving retention rates.
Top Reasons Renters Move:
Seeking a better apartment or house
Looking for lower rent
Wanting a better community or environment
Desiring their own space (no roommates)
Moving closer to family or a new job
Changes in marital or family status
Seeking a more suburban lifestyle
Top Reasons Renters Renew:
Satisfied with the location of the property
Happy with the unit itself
Moving is too expensive
Concern about higher rent elsewhere
Happy with the property manager or landlord
Enjoying the community atmosphere and amenities
As you can see, many of these factors are directly influenced by the quality of property management services. Whether it’s the affordability of your units or the strength of your community, your ability to meet these needs can significantly impact your bottom line.
The Power of Communication and Maintenance in Retention
Renter satisfaction is more than just providing a clean and well-maintained apartment. It’s also about fostering positive relationships through effective communication and top-tier maintenance services.
Communication is Key: Renters who experience clear, transparent, and responsive communication from property managers are four times more likely to recommend the property to others. Satisfied renters become your best advocates, helping you attract new tenants. Utilizing mobile, cloud-based software with AI-powered response systems and texting capabilities can streamline communication, making it easier to keep renters informed and engaged.
Maintenance Matters: Quality maintenance services go hand in hand with overall tenant satisfaction. Renters who are happy with their maintenance experience are 25% less likely to move, emphasizing the importance of prompt, efficient service. Investing in automated tools to track and address maintenance requests can help build long-term tenant trust and improve overall retention rates.
Financial Services: A Growing Priority for Renters
Renters, especially younger generations, are increasingly looking for financial flexibility in their rental experience. Offering services like online rent payments, security deposit alternatives, and flexible rent can set you apart from competitors.
Desired Financial Services:
Online Rent Payments: Corcoran Jennison Management has been providing online rent payment options since 2010, long before it became an industry standard. With 90% of Gen Z and 87% of Millennials expecting this service, our early adoption highlights our commitment to meeting renter needs.
Flexible Rent: Since 2023, Corcoran Jennison Management has introduced flexible rent options, such as rent reporting programs and renter reward initiatives, ensuring our residents have the financial flexibility they desire.
Security Deposit Alternatives: Many renters are interested in alternatives to traditional security deposits, which can be burdensome.
Embracing Technology: Meeting Renter Expectations
In 2025, renters expect convenience and efficiency from their property management teams more than ever before. The AppFolio Renter Preferences Report revealed that 95% of renters find technology helpful for managing their rental experience. However, only 60% of renters currently have access to the tech tools they desire.
What Renters Expect from Technology:
An online portal or mobile app: Corcoran Jennison Management has been ahead of the curve, offering online portals and mobile app access for account information and maintenance requests since 2010. This ensures residents can easily manage their rental experience at their convenience.
Digital lease signing: Since 2017, we’ve provided the ability to digitally sign leases and handle other key move-in tasks online, streamlining the leasing process and enhancing the resident experience.
Comprehensive digital platforms: Corcoran Jennison Management has offered online payment options and tools to manage utilities, insurance, and deposits through digital platforms since 2010. While we’ve focused on certain aspects of these services, our ongoing commitment to technological innovation ensures we’re continually improving the renter experience.
Conclusion: Stay Ahead by Focusing on Renters' Evolving Needs
As we move into 2025, property managers must be proactive in adapting to renter preferences. Communication, maintenance, financial services, and technology are the key areas where renters expect the most attention. By integrating these insights into your property management strategy, you can increase tenant satisfaction, reduce turnover, and attract new renters in an increasingly competitive market.
At Corcoran Jennison Management, we’ve long recognized the importance of these trends, adopting many of them years ahead of industry standards. Our commitment to innovation, resident satisfaction, and technological advancement positions us to meet and exceed renter expectations—ensuring long-term success for our properties and the communities we serve.
