Insights from Zego’s 2024 Resident Experience Management Report (Part 2)

Yolanda Muchnik:
Hello again, multifamily pros. Welcome back to another episode of the Resident Experience podcast. I’m your host, Yolanda, and today we’re continuing our deep dive into the 2024 State of Resident Experience Management report, focusing on the most common assumptions and misconceptions that property management companies are making about their renters today.

Joining me today is Jen Stahlman, author of Zego’s insightful report. Jennifer, welcome to the show.

Jennifer Stahlman:
Thanks for having me.

Yolanda Muchnik:
So, for our listeners, Jen is the main writer of the State of Resident Experience Management report, and she’s been here from the beginning, digging into the market data with our third party surveyor to uncover these findings.

A few weeks ago, we discussed some significant disconnects between property managers and their renters, which we grouped under this big umbrella of resident communications. A key takeaway was that effective bidirectional communication is at the heart of addressing a number of property management challenges, and that sounds easy, but in practice, things can obviously get a little complicated.

So today we’re exploring more findings from this report, specifically the assumptions that property managers are making about renter expectations and how they can address these gaps effectively.

The first finding for our conversation is that property managers wrongfully assume that renters are continuously increasing their expectations. Jen, can you shed a little bit more light on this?

Jennifer Stahlman:
Yeah, so 75% of property managers said that they believe renter expectations have risen in the past year. But our data actually shows that renter expectations have remained relatively stable.

And while this might sound good for property managers, being out of sync with your renters like this, can lead to unnecessary investments in areas that renters may not prioritize as highly.

Yolanda Muchnik:
So what actually drives renter expectations, according to our new survey findings?

Jennifer Stahlman:
Well, the real drivers are the basics. They want a good value for rent. They want effective maintenance, good security, and cleanliness. And we also found that as rents increase, renters do expect to have better service in those areas. So it’s less about luxury upgrades and more about ensuring that the fundamentals are well managed.

Yolanda Muchnik:
Makes sense, and you just alluded to it a little bit. But one caveat I found in the report around expectations is that as rent increases, so do expectations. Is that true?

Jennifer Stahlman:
Exactly, so as renters pay more, they naturally expect more value in return. But as I just mentioned, it doesn’t necessarily mean extravagant amenities. So let’s say your rent is about $2,000 a month, and the main lobby in your building is occasionally messy or sometimes in need of service.

You might let that slide more than if you were paying, let’s say, $3,000 a month for that same unit. Meeting resident expectations is crucial for resident retention, but especially if you’re increasing their rent at any point.

Yolanda Muchnik:
Makes sense, so going back to basics, the 2024 report highlights that renters prioritize digital self service tools for routine tasks, but they actually prefer human assistance for more complex issues.

Can you elaborate a little bit more on this preference? I found that a little interesting.

Jennifer Stahlman:
Yeah, so renters reported they’d rather use digital tools for everyday tasks like paying rent or submitting maintenance requests for a simple issue.

However, when it comes to higher stakes activities such as resolving a significant maintenance issue or a lease renewal, they really prefer human interaction.

So this means property managers should offer a digital platform for their renters. But at the same time, they also need to ensure that their staff is trained to handle these more complex interactions effectively.

Yolanda Muchnik:
I can absolutely see how that would be the case, too.

But despite the preference for digital tools, your report this year found that over half of renters today aren’t actually offered a mobile app at their communities. So what’s the potential impact of this then?

Jennifer Stahlman:
Well, renters get frustrated when they don’t have a convenient way to manage certain aspects of their living experience.

When they have different avenues to resolve their problems, then they can choose what’s most convenient for them and whether that means using their mobile app or seeing their property manager face to face.

And ultimately, having that choice creates a better resident experience. But that said, it’s still really important for property managers to promote an app if they have one. If renters aren’t aware of it and they don’t understand the value, they’re not going to download and use it.

Yolanda Muchnik:
Absolutely. Especially with how many apps there are out there in the world today, I can see that the education and the enablement around this could be really important.

So moving on a little bit to actionable tips, this year’s State of Resident Experience Report introduced a new best practice that’s gaining traction in the industry, and it’s this concept of a resident advisory group.

For our listeners who haven’t yet considered something like this. What would a group like this entail? How can property managers implement one of these effectively?

Jennifer Stahlman:
Well, the first thing that comes to mind when we talk about uncovering resident expectations and design is through resident surveys. And I strongly agree with this, and we’ve seen this tool work well for many, many companies.

However, a resident advisory group will offer deeper insights that these surveys might miss. So that’s why we feel like resident advisory groups are an important finding this year. It does take a little more legwork than a survey, but it can provide critical insights.

Resident advisory groups mean that you’re going to select a diverse group of residents at your property who are willing to provide candid feedback and suggestions to you. These group meetings should be structured with a clear agenda and all participants should be encouraged to have open dialogue. And this will give property managers valuable qualitative data. But at the same time, it provides additional face to face time with residents who are invested in their community.

Yolanda Muchnik:
Yeah, I actually remember a while ago I lived in an apartment community that had something like this, and I thought it was really valuable to be able to funnel information to management through this group.

So lastly, I want to touch on a big trend that I’m observing right now on the multifamily front, and it ties back directly to one of your recommendations in the report this yea and it’s this new concept of loyalty programs within multifamily.

You recommend using reward programs to build loyalty and understand renters better. Can you elaborate a little bit more on this?

Jennifer Stahlman:
Yeah, absolutely. So reward programs are really popular in other industries, and we think they’ll have the same success in multifamily for companies that aren’t using them.

Reward programs can incentivize positive behavior, such as timely rent payments or participation and community events. And by tracking these behaviors, property managers can gain insights into resident preferences and then tailor their services accordingly. So it’s really a win-win situation because it enhances resident satisfaction and loyalty.

Yolanda Muchnik:
Definitely. And I really do see this trend taking off recently. Well, Jen, thank you so much for joining me today. This discussion has been incredibly enlightening.

And as we wrap up, what is your key takeaway today for property managers looking to better understand and meet their own renter expectations? Do you have one big piece of advice?

Jennifer Stahlman:
I have three.

Yolanda Muchnik:
Okay, okay. Three is better!

Jennifer Stahlman:
Don’t take your eye off the basics. The basics matter the most to renters.

And on top of that, you want to continue to leverage technology for routine tasks. Make sure your staff is really educated for complex issues and they’re available to residents when they need them.

And then finally, engage with residents through advisory groups and reward programs. This will give property managers deeper insights into their residents and improve satisfaction as well.

So you get, you asked for one, you get three.

Yolanda Muchnik:
I like it. Well, Jen, thank you so much again for joining me today. This has been a fun conversation, conversation to have with you, and I’m sure our listeners have gained some valuable insights as well.

To our listeners, thank you so much for tuning in. Be sure to check out the 2024 State of Resident Experience Management report, hot off the presses, published last month, and the download link will be in the show notes on our website as well.

Thanks again, Jen and folks, stay tuned for some Good News.

Jennifer Stahlman:
Thank you, Yolanda.

Good News

Amber Halteman:
Hey, multifamily pros, it’s Amber, your behind the scenes podcast producer, stepping into a little bit of the spotlight to share some listener Good News with you.

Now let’s go over what’s Good News? Well, it can be anything. It’s a successful work initiative, a fantastic resident review, a shout out to a colleague, a shout out to a friend. Heck, let’s go ahead and promote yourself. I love self promotion. Who else but you is going to call out your good news? This is your time to shine. There’s enough stress and anxiety in multifamily and the world. So let’s help shine a brighter light on what’s going great.

How do you submit Good News? Easy peasy, lemon breezy. Go to the show bio on any platform you’re listening to, listening on, or go to our podcast page, which you could be listening on also at gozego.com/podcasts and click the contact the show link. It will take you to a website where you can leave a text or even a voice message of your Good News, and we’re going to highlight it on the following show. Alright, let’s get to the good stuff.

First on deck from Anonymous. Well, on my 44th birthday, I got a scratch off and won $5,000. Woo. Woo. I was able to pay off a credit card that was taking forever to pay. It’s a great thing, for me, at least, lol. Okay Anonymous, wish you had your name on here. I’m 44 as well. Can you give me some of your good mojo and allow me to win $5,000 on a scratch off? Because quite frankly, I don’t think anyone here is gonna hate on that. Congrats on paying off that credit card. Way to start your 44th year.

All right, next up, Angie J.. I finally got to meet John in person at Apartmentalize. What a pleasure, Angie. Love you. Love that you got to meet John in person. By the way, folks, she’s talking about one of our sales folks, [John] McKee. He’s an amazing person as well. Love to hear it.

All right, next up Anonymous. I became a certified mental health first aid responder. When residents are experiencing a crisis I now have the training to assist and even diffuse potentially dangerous situations. Oh my gosh, amazing. I think that’s such a wonderful skill set to have. So happy to hear you got the certification and I know your residents are going to be better for it.

And then we just have one more for today folks, one last Anonymous. I got a promotion. Congratulations. I love to hear it. I wish I knew what type of promotion but whatever it is I’m sure you deserve it.

Alright folks, thank you to everyone who has written in for the Good News. I can’t wait to hear what our listeners have to say next week.