Seismic Shifts: How to Meet Renters’ Changing Needs

5 Opportunities for the Multifamily Industry to Meet Renters’ Shifting Needs

It’s been a turbulent world coming out of the COVID-19 pandemic, marked by inflation and financial uncertainty. Just like in March Madness, winners and losers can come as a surprise. In this environment of challenges and disruption, it’s more important than ever to apply a growth mindset.

That’s the message Google’s Kristen Leone shared in the latest Apartmentology webinar from Apartments.com. Leone, a digital transformation and strategy lead, spoke to the need for multifamily professionals to understand the major shifts in renters’ behavior and to consider technology to help them adapt.

An economic backdrop of changes and uncertainty

Skyrocketing inflation over the past two years has taken a hit on consumers and businesses.

“In many ways, the state of the economy, the state of our geopolitical situation, the state of our health coming off a pandemic could be considered madness,” Leone said.

Inflation has forced 40% of consumers to change their plans, according to a 2022 Google consumer survey. Changes include reducing household spending, canceling large purchases, and moving to a new home or apartment.

In this environment, Leone laid out five new opportunities for multifamily owners and operators.

Opportunity 1: Expand your pool of potential renters

The challenges of homebuying have led some prospective homeowners to instead opt to rent, Leone said. This creates an opportunity to speak to the advantages of renting over homeownership. She encouraged properties and property management companies to highlight the perks of community, amenities, and on-site maintenance that the renting lifestyle offers.

Opportunity 2: Understand shifting consumer behavior

Despite the economic challenges, consumers have maintained an increasing interest in real estate. Leone highlighted a positive trendline for real estate searches from 2019 through 2022.

At the same time, the path a prospective resident takes from researching properties up through signing a lease has grown increasingly complex. A whopping 93 percent of customer journeys aren’t replicable, Leone said. And the more complex the process, the more chances there are for your prospective customers to hit obstacles or drop off entirely.

Rather than a straight line, consumers typically loop back and forth between exploration and evaluation. This process takes an average of 10 hours and is made up of multiple touchpoints, as customers fit their rental search into their busy lives. These touchpoints can include online searches, browsing listing sites such as Apartments.com, viewing the property website, reviewing social media, and talking to friends and family.

Leone emphasized the importance of keeping your online details up to date, such as maintaining your Google Business Profile and Apartments.com listing.

Opportunity 3: Meet your customers where and how they expect

Consumers evaluate an average of four providers before making a decision, Leone said. So how can you rise to the top?

If you use a contact form to generate leads, look for ways to encourage prospective residents to fill it out. Only 11% of consumers use a form when seeking information, Leone said. So why are the majority of customers staying away?

It’s because forms require too much information, users don’t know what will happen after they submit their details, and they worry about privacy and unsolicited communications. That’s why you should simplify and test your forms.

And when you do get submissions, don’t wait — 85% of customers who request information expect to hear back within a day. So it’s essential to meet that need for speed with a prompt response, Leone said.

Opportunity 4: Lead with your values

Customers are looking for value and trust, Leone said.

“They want to know that their hard-earned dollar is delivering what they want,” she said.

That’s why it’s essential to demonstrate the values of your business, such as your high standard of customer service, environmental practices, status as a family-owned business, or how you support the local community. Over 67 percent of consumers said it’s important that brands align with their values, according to Google Surveys data.

Opportunity 5: Learn how new AI-powered tools can unlock growth

Artificial intelligence has become more accessible than ever. Not only does AI power popular tools such as Google Search, YouTube, and Gmail, it’s also on the rise within property management, including in customer relationship management systems, chat, and booking tools.

Leone encouraged business leaders to explore the possibilities of AI to help them use their resources more efficiently. She emphasized the human-guided nature of AI and explained that, just as the advent of computers didn’t eliminate the need for accountants, the growth of AI within property management will transform but not replace the need for human engagement.

Stay curious, and win big

With a growth mindset, multifamily owners and operators can take advantage of these opportunities to win over new customers.