Across any industry, creating a positive customer experience is paramount to building a successful business. That is especially true in the multifamily industry where a resident’s experience influences one of their biggest decisions – where to live.
The resident experience has a direct impact on retention and a property’s bottom line. Creating a positive renter experience is critical to avoiding costly turnover expenses, building strong apartment communities, and generating positive word-of-mouth referrals that drive occupancy and profitability. Dissatisfaction that leads to tenant turnover negatively impacts a property’s net operating income (NOI). Research by the National Apartment Association (NAA) has shown that a single move-out can cost nearly $4,000, with some of the biggest line-item expenses being lost rental income, leasing and marketing expenses, and cleaning, painting and repairs associated with vacant units.
Property owners and operators are putting even more focus on resident retention in a market where fundamentals have softened, and uncertainty is clouding the outlook for demand in the coming year. Another potential turnover risk the industry is facing in 2026 is the possibility of inverted rent rolls, where asking rents for new residents are coming in below current lease rents.
Strategies to Improve the Renter Experience
According to Zillow Rentals, over 60% of customer turnover is controllable. Controlling turnover boils down to making sure residents are generally satisfied with their living situation. However, creating a positive experience is not as simple as it might seem, in part because people are inherently different and views on what qualifies as a “good” or “bad” experience are highly subjective.
The basic tenets of customer service remain paramount. People want fast, friendly, and frictionless service. Providing good service along with clean, safe, and well-maintained properties are table stakes for multifamily operators. So, where are there opportunities to improve the renter experience without straining a property’s resources? The solution is to leverage cost-efficient technologies that can augment the renter experience, such as:
- Tech-forward solutions that deliver greater convenience and efficiency, such as AI-powered COI processing
- Centralized tools that make it easy for renters to manage routine tasks
- Financial wellness tools that help renters build financial health like rent reporting
Property Teams Need to Embrace Tech-Forward Solutions
More than 75% of U.S. adults are now transacting on their mobile devices – to shop, bank, and pay bills. Increasingly, people expect the same convenience when it comes to paying rent or submitting maintenance requests.
Tech-forward solutions provide amenities for residents, with the added benefit of creating greater efficiency for on-site property management teams. Technology helps to reduce the administrative workload, such as responding to leasing inquiries and making sure renters are current on lease compliance, which frees up more time for staff to focus on making sure residents are happy, with the possibility of driving ancillary revenue.
For example, most properties require residents to have ongoing liability coverage. However, inspecting and processing every residents’ proof of insurance can be a time-consuming process for property managers. In addition to collecting proof of renters insurance at the start of the lease, managers need to continually check to ensure that coverage is up-to-date and meets lease requirements. Solutions such as Foxen’s renters insurance compliance solution integrate with property management systems and fully automate the insurance monitoring process.
Provide Centralized Tools to Residents
Centralization of technology allows various solutions and tools to connect seamlessly on one hub or platform. Utilizing a centralized platform that integrates various functions, such as insurance compliance, pet management, and rent reporting, creates greater operational efficiency by eliminating manual work and “vendor bloat” for property management teams.
Working with a centralized system also gives property managers more data and insight into what’s happening at their properties and with individual residents, allowing them to be more responsive and offer more personalized service. For example, a notification that a resident has submitted proof of insurance and is now compliant with their lease liability requirements.
Help Renters Build Financial Health
Landlords are working to meet the growing demand for health and wellness at their communities, and wellness goes beyond physical or mental health to also include financial well-being. One area where property owners and operators can make a big difference in the financial health of renters is by helping them build credit to achieve their financial goals, such as qualifying for a car loan, student loan, or eventually, buying a house.
Rent reporting tools empower renters to build and improve their credit by reporting rent payments to leading credit bureaus. Unlike mortgage payments, which are typically included in credit reports, rent payments have not always been considered. Rent reporting tools are an added amenity that promotes financial wellness for residents, while also providing the added benefit to property owners of increasing on-time payments. With Foxen’s rent reporting and credit building solution Rentistry, residents have the opportunity to build their credit through on-time rent payments to the leading credit bureaus. Properties have the ability to tap into a desired amenity, while also generating ancillary income from providing this service.
Key Takeaway: Building Strong Communities Improves the Resident Experience
Leveraging technology to enhance the resident experience benefits property owners, operators, and their residents. Owners benefit from higher retention rates, as well as an amenity offering that can give them a competitive edge and the opportunity to generate ancillary income. Their management teams benefit from a reduced administrative burden that helps them gain hours back in their week. Residents can enjoy a better overall quality of life.
Another important step to boosting retention and profitability is to continually evaluate what’s working and what’s not. Gather feedback from residents through means such as surveys, comment cards, and social media to better understand likes and dislikes and where there is an opportunity to improve.
In today’s competitive apartment market, prioritizing renter experience is essential for both resident satisfaction and long-term property success. By applying technology, fostering community, and continually seeking resident feedback, property owners can boost retention, enhance profitability, and create thriving apartment communities.
Improve the Resident Experience with Foxen
Multifamily operators can work with solution providers to streamline processes, minimize administrative burdens, and enhance overall resident satisfaction. Discover how Foxen’s innovative solutions can help you reduce friction and improve the resident experience at your property. Contact us today to learn more.
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