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Modern Renters Crave Easy, Digital Experiences, AppFolio Research Finds

1. AppFolio's Renter Preferences Report reveals key renter expectations. 2. 73% of satisfied residents plan to renew their leases. 3. Digital services in property management remain underutilized. 4. Gen Z values digital conveniences and flexible rent options. 5. Improving resident experience can help attract new renters.

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Why Bullish?

The report highlights a growing demand for services offered by AppFolio, suggesting increased market opportunities. Companies that adapt to these shifts can see enhanced revenue and stock performance, similar to tech adaptations in previous market shifts.

How important is it?

The information presents actionable insights for property managers, indicating how AppFolio can lead market trends. As demand for digital services increases, AppFolio is positioned to capitalize on this shift.

Why Long Term?

The trends in digital services and Gen Z preferences will shape the rental market for years. Companies that invest in these technologies will benefit in the long run, much like early adopters of online payment systems.

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Report reveals growing appetite for services that deliver convenience Property managers must elevate the resident experience to attract renters amid rising competition SANTA BARBARA, Calif., May 22, 2025 (GLOBE NEWSWIRE) --  AppFolio (NASDAQ:APPF), the technology leader powering the future of the real estate industry, today released its 2025 AppFolio Renter Preferences Report. Drawing on insights from over 2,000 U.S. renters, the report outlines key strategies for property managers to gain an edge in a competitive market shaped by rising costs, higher vacancies, and slower rent growth. Residents Want Services That Offer Convenience in Their Daily LivesToday’s renters expect property managers to offer a digital, consumer-friendly experience similar to what they receive from retailers and on-demand applications. However, the availability of these services – like renter rewards programs, security deposit alternatives, and prompt maintenance support – is still limited, presenting a gap for property managers to fill. Residents who are satisfied with their property manager are 73% more likely to plan to renew their lease. Similarly, those who are satisfied with maintenance are 71% more likely to say they are planning to renew their lease, and 86% of renters who are satisfied with communication about maintenance issues are also satisfied with their property manager.Despite online payments becoming more common, 39% of renters still pay rent through traditional methods like cash or check, with 59% of those renters reporting that online payments are not available to them.When considering a new rental, renters report the most valuable financial services to them are online rent payment (86%), rent reporting (72%), renter rewards programs (72%), flexible rent (69%), and security deposit alternatives (65%). Modernizing the Moving Experience Is an Untapped OpportunityMoving is a highly stressful part of the rental journey and while digital move-in services can greatly reduce this burden, they remain underutilized. Those who use them overwhelmingly find them helpful. While 35% of renters plan to move from their current housing, primarily seeking better living spaces or lower rent, 44% of those choosing to renew their leases cite the high cost of moving as their main reason for staying.Three-fourths of renters have experienced challenges during the move-in process, with setting up utilities being reported as the top issue.Fewer than 30% of renters have completed their move-in tasks through digital tools, yet 80% of those who have used them found the digital tools beneficial. Understanding Generational Differences Is Key to Meeting and Exceeding Resident ExpectationsGen Z is on track to become the largest renter demographic by 2030. With accessing homeownership continuing to be a challenge, many see rental homes as long-term residences and expect homes that use technology to improve everyday life. 71% of Gen Z renters consider digital move-in services important, compared to 58% of Millennials, 53% of Gen X, and 34% of Baby Boomers.When evaluating a new rental, 69% of Gen Z are interested in smart home technology, compared to 58% of Millennials, 50% of Gen X, and 46% of Baby Boomers.77% of Gen Z renters prioritize flexible rent, in contrast to 67% of Millennials, 49% of Gen X, and 37% of Baby Boomers. "Residents expect fast, easy, and personalized experiences—and our report shows that demand is only growing,” said Stacy Holden, Vice President, Industry Principal at AppFolio. “Property managers that meet and exceed resident expectations will not only address current gaps in service but also attract new renters and build stronger relationships with existing residents.” Explore the top trends defining today’s rental landscape and download the 2025 AppFolio Renter Preference Report. Survey MethodologyAppFolio commissioned a survey of 2,002 U.S. renters ages 18 and up, which was conducted from January 24–30, 2025. About AppFolioAppFolio is the technology leader powering the future of the real estate industry. Our innovative platform and trusted partnership enable our customers to connect communities, increase operational efficiency, and grow their business. For more information about AppFolio, visit appfolio.com. For more information, please contact:AppFolioappfolio@missionnorth.com

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