Will the Next Amenities War Be About Services?

The apartment amenities war continues.

In an effort to attract new residents in a competitive multifamily environment, apartment owners continue to offer a wide variety of community amenities to differentiate their communities—especially in markets where there is an oversupply of available apartments.

According to the 2024 NMHC/Grace Hill Renter Preferences Survey, apartment residents are now more interested in certain community amenities than they were in 2022. For example, 76 percent of those surveyed responded that they were “interested” or “won’t rent without this” feature when asked about secure self-service package access, compared to 73 percent in 2022. Interest in other amenities increased as well in the past two years, such as swimming pools (+3 percent), a fitness center (+3 percent), controlled-access parking (+7 percent), community-wide Wi-Fi (+5 percent) and rooftop space (+2 percent).

But lately, apartment owners and managers are reporting that prospective renters are increasingly interested in services—smooth move-in processes, streamlined maintenance requests, on-site pet care and reward programs, services that set the tone for a positive and stress-free residency—and managers are implementing platforms that automate these processes and make life easier for both managers and renters.

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Patrick Hennessey, a vice president at Yardi, recently spoke with Multi-Housing News about the increasing importance of services to residents, what owners and managers need to know and about platforms that help make meeting the needs of renters easier.

Have developers been successful in the apartment amenities war and their battle to attract new residents to their communities?

Hennessey: One of the big challenges with amenities is that renters’ preferences evolve over time. So, something that a developer or property owner might invest in today to have the property be as attractive as possible right now may not be something that’s relevant or desired by renters five or 10 years down the road.

Apartment owners and managers are reporting that there’s been a change in what prospective renters are prioritizing—that services, such as move-in assistance, on-demand cleaning and pet care, are becoming of increasing importance over traditional amenities. How important are services today to renters?

Hennessey: There’s a huge focus on the move-in experience right now across the industry, and it’s something that I’ve always found fascinating. We have clients that represent millions of apartments, and those clients have been obsessed with the look and feel of their website and the experience the renter has applying at that property and signing their lease at that property online. Then, when it gets to the move-in step, the process goes offline, from this beautifully curated branded experience for the new property, and in a lot of cases, the renter is handed, emailed or mailed a letter that gives them 10 tasks they need to complete before move-in day, including things like getting electricity set up, getting renters insurance squared away and signing up for cable and internet. So, the process up until recently has been extremely disjointed when move-in time comes around.

So why are these services so much more important to renters these days? Is it just that everyone is so busy and they want a stress-free experience?

Hennessey: It’s a combination of people being busy and, in a world where just about everything is available in an app, people expect an incredibly simple experience to get the things they need and want. The days of being told to call a phone number or go to this website and sign up are antiquated.

So, renters who first get the information they want on a community from a beautifully designed website, where they’re greeted by a chatbot to answer their questions, and submit their application online then are expected to go through the hassle of making phone calls to set up their utilities and get renters insurance? What can property owners and managers do to ease the process for them so they begin the resident experience in as pleasant a manner as possible?

Hennessey: Most large landlords today are looking at fully integrated platforms that make the various required services available with just a few clicks of a mouse. There are still a handful of things that have to be done manually, but a renter today can get the vast majority of the services they need to move into their new apartment in just a few minutes through an online experience as part of their rental platform.

Why is the move-in experience so important for both renters and apartment owners or managers?

Hennessey: There is survey data that shows that one of the main reasons that folks give notice and move from an apartment community is because of a bad experience that started at move-in. We all know first impressions are critically important, and there’s no difference when taking possession of a new apartment.

So, you are saying that someone can live in their apartment for a year, but when it comes to renewing their lease, that initial move-in experience can still impact whether they stay or not?

Hennessey: That’s right. It happens every day.

What can owners and managers do to improve the move-in experience and make the process of signing up for utilities, getting renters insurance and booking movers easier?

Hennessey: Over the last couple of years, there have been a number of solutions that have come to market to basically provide a seamless onboarding experience. Renters who are even marginally comfortable with technology can go through that process in about five minutes.

How can technology help property owners and managers provide a seamless, streamlined experience that saves renters time?

Hennessey: RentCafe is our renter-engagement platform for property managers to use. Through RentCafe, apartment seekers can apply for an apartment online, and once they find the apartment that they want, they can sign their lease online. As part of the move-in process, they can get the necessary services they need, like renters insurance, electricity, cable and internet, and it’s also where they would go to do routine tasks like maintenance requests. The goal is to give the resident a single app to cover anything they might need during their rental journey at the property.

Do renters have the opportunity to earn reward points as well?

Hennessey: Rewards are becoming increasingly popular in rental housing in two ways. There are systems offering rewards for renters to purchase the things they need and want related to their rentals. Separate from that, there is now demand from housing providers to run a loyalty program to inspire the behavior they want to see from their renters for things like early renewals, giving a referral or posting something nice about their property on social media. The goal is to create a rewards ecosystem that allows the renter to earn points and gain value from either purchasing the things they need as part of their rental or for participating in offers made by the property management company.

What’s the advantage to the property owner for offering these rewards?

Hennessey: Increased loyalty and higher renewals.

So, what advice would you offer to apartment professionals anxious to find new ways to attract and retain residents in a very competitive apartment landscape?

Hennessey: Today’s renter is looking for a great experience from start to finish. That means a streamlined and efficient move-in experience. It means a positive experience day in and day out over the length of their lease. When it comes time at the end of their lease, they also want a simple process to either renew or move on to their next home. A platform like RentCafe can help streamline and add efficiency to each of those phases of the renter life cycle.