What do renters want when searching for new apartment space today? What percentage of renters plan on renewing their current leases? And more importantly for apartment owners: Can an effective property management team lessen the odds that renters will move to a new apartment unit once their leases expire?
Those are the questions that AppFolio asked in its 2023 Property Manager Renter Motivations Report.
And the results? Most renters who do plan to move to a new apartment when their lease ends are on the hunt for better units, lower rents or a nicer neighborhood. A surprisingly high number of renters are happy to renew their current leases when they end.
And, yes, the when apartment buildings boast a strong property management team, renters are more likely to renew when their leases end.
According to the motivations report, the top reason why renters move to a specific apartment isn’t surprising: 37% of renters said they were looking for a better unit, the survey’s most common response. An additional 29% said that they were looking for lower rent and 24% were seeking a better community.
The survey also found that 19% of renters moved to a new apartment to be closer to their family, while 15% moved because of a change in marital or family status. An additional 14% moved because they wanted to live on their own without a roommate.
But how many renters are happy to stay where they are? AppFolio reported that 33% of apartment leases are expiring in the next six months and 56% in the next 12. Of these renters with expiring leases, 50% say that they plan on renewing their current lease and staying in their apartment unit.
AppFolio found that 25% of renters with expiring leases plan to move while 13% aren’t sure what their plans are and 12% plan to purchase a home.
AppFolio also asked renters how satisfied they are with their current property manager. A total of 66% of respondents said that they were either satisfied or very satisfied with their property management company. That’s a high percentage, but it’s actually down from 72% in AppFolio’s 2022 survey.
A lower precentage — 10% — said that they were not satisfied with their property management company while 7% said they were very dissatisfied. An additional 17% said that they were neither satisfied nor dissatisfied.
Satisfaction varies by age. AppFolio found that 75% of Baby Boomers were happy with their property management companies while 66% of Gen Xers were happy. A total of 64% of Millennials reported being happy with their property managers.
Bringing up the rear were Gen Zers. Only 56% of this age group said that they were happy with their property management. That might be because members of this age group are younger and often can’t afford to rent in a higher-end apartment building that features a more experienced property management firm.
The performance of a property management team matters when it comes to retaining tenants. AppFolio found that just 24% of renters satisfied with their property management team are looking for a new residence. Dissatisfied renters were two times more likely to be actively searching for a new home.
