As the real estate landscape evolves, one aspect remains crucial for investors: understanding the people at the heart of it all—renters. The latest comprehensive survey from Apartments.com sheds light on a significant shift in renter behavior, providing investors with valuable insights to fine-tune their strategies.
A Surge in Mobility
The survey, which captured the responses of 30,000 renters across the US, highlights a surge in plans to move, with 48% of respondents stating their intention to relocate within the next six months. This marks a significant increase from the 40-43% range seen in the last two years. For property owners and operators, this presents a timely opportunity in a market where demand has sometimes lagged behind supply. The momentum of renters looking to relocate has the potential to recalibrate the market's balance, breathing life into properties that may have struggled to maintain occupancy.
Chris Hood, senior director of marketing at Apartments.com, notes that the return to in-person work could be a driving force behind this movement. As companies increasingly mandate on-site work, renters are rethinking their living situations, favoring proximity to their workplaces while seeking a lifestyle that suits their needs. Investors should note this shift as an opportunity to cater to renters who may now be looking for properties in different regions or markets that align with these evolving preferences.
Virtual Tours: The New Normal
An intriguing trend emerging from the survey is the willingness of renters to rent properties sight unseen. With nearly 37% of renters open to this option, there’s been a seismic shift in the way potential tenants evaluate homes. This surge in virtual leasing is driven by robust online property listings featuring detailed virtual tours, photos, and videos. In a world where time is money, and efficiency is paramount, these tools have proven invaluable.
For investors, this insight provides a golden opportunity. High-quality digital content can expand the renter pool far beyond local markets, reaching individuals who may not have the time or inclination to visit properties in person. By offering immersive virtual tours, property managers can attract a broader audience, converting curious viewers into committed tenants. An investment in cutting-edge digital marketing could be the key differentiator in today’s competitive rental market.
The Rise of Brand Loyalty
Perhaps one of the most unexpected findings from the survey is the rising importance of brand loyalty among renters. Of 10 renters, nine expressed that the name of the property management company mattered to them. Even more striking, seven out of 10 renters planning to move indicated a preference for staying with the same management company.
For investors, this highlights the power of a reputable property management team. A strong brand can act as a magnet for retaining tenants, reducing turnover and the associated costs. By investing in a respected and reliable property management company, investors can create a sense of continuity for renters, offering peace of mind that translates into longer tenancies and fewer vacancies. This brand loyalty, once undervalued, could become a critical factor in driving profitability.
Flexibility: The Key to Leasing Success
One of the study’s clearest messages is that renters crave flexibility. Over 90% of respondents expressed a desire for multiple touring options, including in-person tours with an agent, self-guided tours, and virtual tours. As preferences continue to diversify, providing options that cater to individual lifestyles will be essential.
Investors can take note by ensuring that the properties in their portfolio are equipped to offer a range of touring experiences. Those who invest in adaptable and innovative leasing processes will likely see increased interest from potential renters, translating into more efficient leasing cycles and reduced vacancy times.
For real estate investors, these insights provide a roadmap for success in a rapidly changing rental market. The surge in renters planning to move offers a promising sign for demand. Embracing the rise of virtual tours can help capture interest from a more expansive audience, while brand loyalty underscores the importance of partnering with well-regarded property management teams. Finally, flexibility in touring options should be viewed as a necessity rather than a luxury.
As renters continue to evolve in their preferences and behaviors, the key to investment success lies in understanding and adapting to these trends. In doing so, investors will not only meet the needs of today’s renters but also position themselves to thrive in tomorrow’s market.
Comments