How proptech boosts multifamily resident retention

The months-long slowdown in the rental market is leveling off, according to a recent Zillow report. But with record multifamily completions adding to rental supply, competition is still fierce in many multifamily markets. In these market conditions, multifamily owners and operators can't afford to ignore retention.

The average resident retention rate for multifamily companies is 56%, meaning most communities lose nearly half of their residents annually. Replacing even a single resident is expensive, with turnover costs approaching $4,000 per unit, according to a 2024 Zego report.

Looking for ways to boost lease renewals? Proptech can be a game-changer. Let's explore how it boosts retention and the solutions that offer the best results.

How proptech boosts retention

Proptech, including everything from smart technology to property management software, helps improve resident retention by:

Satisfying renter preferences

In a 2022 Rent.com survey, 82% of renters wanted at least one smart device. Renter's expectations have risen even since then. In Zego's 2023 Resident Experience Management Report, more than 39% of owners and operators said renters had raised their expectations for unit technology over the prior year, and 51% said renters had raised their expectations for community technology.

Enhancing daily living

A fifth of renters who are planning to move are seeking better home features or property amenities, according to the 2024 NHMC and Grace Hill Renter Preferences survey. The latest technology could encourage many of these renters to renew their leases. Smart home solutions-like smart thermostats and smart locks-provide comfort, convenience and control. Smart community solutions-like smart access control, community WiFi and smart package rooms-offer tangible improvements to everyday life.

Improving customer service

The proptech solutions renters can't see also contribute to a better living experience. Property management platforms and digital tools improve on-site service by streamlining maintenance, audits and inspections and facilitating better communication. These improvements are important, as 97% of renters in the NHMC and Grace Hill survey said customer service and staff interactions factored into their leasing decisions.

Reducing staff turnover

Proptech tools offer another often-overlooked benefit for resident retention. Automating routine tasks frees on-site teams to focus on more satisfying duties. This shift can help boost job satisfaction. Given that high staff turnover can raise renter turnover by 6%, boosting employee morale is essential for increasing resident retention.

The best proptech to invest in for better retention

It's clear proptech can help boost renter retention. But with hundreds of proptech solutions on the market, which brings the biggest retention benefits? The NHMC and Grace Hill Renter Preferences Survey provide important clues. According to the survey, renters are most interested in these smart home and community solutions:

• Secure self-service 24/7 package access (76%)

• Controlled property and amenity access (75%)

• Controlled access parking (72%)

• Smart thermostats (72%)

• Smart leak sensors (69%)

• Pre-installed WiFi (67%)

• Smart security alarm system (67%)

• Keyless smart locks (67%)

• Video doorbells (65%)

• Smart lighting (62%)

• Community-wide WiFi (59%)

Residents may be less aware of behind-the-scenes proptech tools like property management software. But it's clear they appreciate the benefits these tools offer, too. According to the NHMC and Grace Hill survey, 21% of residents planning to move wanted a better management company. This statistic suggests many communities could benefit from improved management tools. In particular, tools that ensure prompt maintenance are important, as 52% of renters cited maintenance-free living as the top benefit of renting.

Final thoughts

Boosting retention can give you a competitive advantage, and proptech is your ally. Investing in proptech solutions can help you satisfy renter preferences, enhance daily living, improve customer service and reduce staff turnover-all of which contribute to better retention. As you build your proptech stack, consider prioritizing the solutions residents most value, such as a smart package room, smart access control, smart thermostats and smart leak sensors.

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