Zego, a property management proptech company, released a report that found there is a rise in expectations for digital communications, the importance of resident reviews and rent growth influencing renter expectations.
Based on these trends, Zego formulated how multifamily communities can bring in and retain quality tenants. The report combined data from its 2022 State of Resident Experience Management Report and external research, including customer testimonies, to advise property managers on the ways they can establish an online presence and a prospect-to-resident experience.
This experience, according to Zego, has a few steps including attracting renters, converting prospective renters into residents, and engaging and retaining them in the future.
The report draws from the National Multifamily Housing Council (NMHC) reports, which found 83% of renters visit the property or the property management company’s website at least once while hunting for a place to rent.
The 2022 NMHC Renter Preferences report also found 71% of renters are millennials or Gen Z below 45 years of age, and are keen on digital touch points for their resident journey. Through these digital platforms, they do not need to communicate with brokers or realtors and search for a suitable apartment by themselves.
Moreover, Zego reports 87% of renters did not use a broker, locator service, or realtor while searching for an apartment.
Zego says property marketing today has changed drastically in the last few decades, changed by the advent of Internet Listing Services (ILS), which were later bought by companies like Apartments.com and CoStar. Investing in websites became of utmost importance, in a bid to make it to the first page on Google. Having established a website and a CRM tool, companies are now moving onto technology that would allow tenants to have control over their house search.
The company also conducted a survey in 2022 called the State of Resident Experience Management report that found most property management companies believe their online reputation is very important for their acquisition of tenants.
In this regard, referrals and positive reviews from residents help create a positive marketing environment for property managers, as they can rely on word of mouth recommendations for future tenants.
The survey of 600 multifamily companies also found that an average of $217 is spent per unit on advertising in 2022, a $13 increase from the average in 2021. Zego suggests advertising on social media platforms like Facebook, Instagram, LinkedIn, TikTok, YouTube and search engines. NMHC reports 45% of renters visit social media pages of the properties they want to rent.