Study: 5 Musts for Successful Property Management in Northern Virginia
To achieve successful property management as a landlord, you must keep 5 factors in mind, according to a new study.
In August, property management software AppFolio released a 2024 Renter Preferences Report. In this report, AppFolio surveyed over 2,000 tenants across the US to examine which rental features matter to them.
The data shows that a landlord’s implementation of 5 features can deeply impact tenant satisfaction and retention. In fact, the study reported that renters who are satisfied with their property management for these reasons, among others, are 30% more likely to stay in their rental than those who aren’t.
So, we pored through the data report & analyses to find the best advice for landlords. Read ahead for a breakdown of the key findings.
Main Takeaways: Successful Property Management Strategies for North Virginia and Beyond
- When looking for a rental, tenants place special scrutiny on how trustworthy and transparent the landlord seems. So, you should make sure that your listings are detailed and honest, your reviews/responses to reviews are positive, and your inquiry responses are quick.
- You must provide prompt communications and maintenance during tenancies to earn tenant retention and recommendations.
- Tenants want financial services that boost their overall financial well-being, like rental credit reporting services and renter reward services.
- Tenants feel online portals and other technology are essential features, especially younger tenants.
Table of Contents
- Marketing Strategies Should Showcase Your Customer Service Skills
- Communications and Maintenance Can Affect Retention and Recommendations
- Financial Services Should Have Extra Benefits
- Online Portals are Necessary for Convenience
- Younger Demographics Demand High-Tech Services
1. Marketing Strategies Should Showcase Your Customer Service Skills
Overall, the report emphasized that successful property management in Northern Virginia and elsewhere requires an active online presence. This finding holds true from the minute tenants start their general search to the moment they finally contact the landlord to pursue a specific rental.
Let’s walk through this process. When renters first search for new rentals, 30% turn to property or property manager websites.
Then, when they peruse the listings, they’ll scrutinize the descriptions to see if you’re giving them the full picture of all the property’s qualities, warts and all. In fact, 95% of responders cited listing clarity and transparency as very important or important to them.
Next, they likely will look through review sites to investigate the property manager’s reputation. If this happens, you’ll want to be sure your reviews (or at least, your responses to bad reviews) are positive. 88% of renters find such reviews to be particularly important in their search.
Finally, once they decide that your property rental business has passed the sniff test, they expect a quick response. 76% will expect you to respond to their listing inquiries within 24 hours. More pressingly, 27% will want you to answer within a few hours.
In essence, the takeaways are that tenants prioritize a landlord who shows good character and customer service. They want landlords who demonstrate honesty, reliability, and responsiveness throughout the application and tenancy process.
As they consider your property rental business, they’ll seek signs that you care about treating tenants like them right. They’ll want to know that you won’t just give them the keys and then call it a day. Instead, they’ll hope you show a sense of accountability for giving them a satisfactory experience throughout their stay. So, your marketing should respond to these needs.
2. Communications and Maintenance Can Affect Retention and Recommendations
It goes without saying, but prospective tenants’ expectations for responsive customer service don’t end when they move in. The study’s results show that a landlord’s ability to meet those expectations will greatly impact their retention rate. As such, landlords must work on developing a professional landlord-tenant relationship.
Renters who cite satisfaction with their landlord’s communication are 25% less likely to plan on moving. Furthermore, they are almost four times more likely to recommend their landlord or property manager than unsatisfied tenants.
In terms of make-or-break duties, maintenance also plays a huge factor in retention. Like the stat above, renters are 25% less likely to plan on moving if they’re satisfied with their property’s maintenance. Tenants reward successful property management with almost three times more recommendations than bad ones, as the study states.
These findings show that putting in that extra bit of effort into communication and maintenance massively pays off. Not only can it help you retain your current renters, but it also can help you attract countless more. 26% of renters turn to personal recommendations to find their new rental, as the report notes. So, think about the extra time you spend as an investment in your property rental business’s brand and reputation.
3. Financial Services Should Have Extra Benefits
According to the study data, financial services with extra benefits are some of the most-wanted apartment amenities of 2024. However, the supply has not met this overwhelming demand.
For instance, 73% of renters want programs where landlords report consistent rent payments to credit bureaus. However, only 47% of landlords and property managers have implemented these services. Other underutilized financial services tenants want include security deposit alternatives, flexible rent schedules, online payments, and a renter reward program.
These property rental business services are especially important to younger generations, like Gen Z and millennials. As one example, 90% of Gen Z and 87% of millennials place special importance on paying the rent online.
All this goes to show how crucial it is that your property rental business keeps its financial services modern and up-to-date. Also, the fact that renters love rent reward programs, rent reporting programs, and similar options shows they want their financial services to support them beyond just their tenancy. Instead, they want these services to enrich their broader financial well-being.
4. Online Portals are Necessary for Convenience
Online portals are an essential aspect of successful property management to most renters. To specify, 75% of renters feel it’s important that their landlord or property manager offers an online portal. However, only 60% have brought this to the table.
Tenants with online portal access found that portals made it easier to complete lease signing, security deposit payments, utility setup, and renter’s insurance purchases. Put another way, it streamlined many of the most common tedious move-in steps.
Online portals are significant because they make your tenants’ lives immeasurably easier. They let your tenants address their responsibilities and resources all in one place. Moreover, they can handle these matters whenever they want, wherever they want. They gain more control over their experience.
5. Younger Demographics Demand High-Tech Services
As the study shows, technology access is especially important to Millennials and Gen Z.
For instance, 81% of Gen Z and 77% of Millennials surveyed find online portals to be an important feature of a property rental business. Additionally, 66% of Gen Z and 60% of Millennials prize smart technology as prime amenities that enhance their experience.
Catering to these groups is no trifling matter. It should be one of your utmost priorities for successful property management. As you may know, Gen Z and millennials are widely known to be the biggest portion of renters in the rental market. As a matter of fact, Gen Z is slated to be the biggest segment of renters in the whole country by 2030. So, you should bump technology improvements to the top of your list.
Some Final Advice for Landlords in North Virginia
All in all, the study shows some illuminating advice for landlords. To boost your property rental business, you must market with customer service concerns in mind. Then, you must follow up on your marketing promises by providing prompt, responsive communication and maintenance. Finally, you should offer financial services with benefits, online portals, and other technology-based services for renters’ convenience.
By considering these steps, you can achieve successful property management. However, actually putting them into practice is easier said than done. After all, to give tenants what they truly need, you could have to dedicate hours of time and energy that most people just don’t have.
That’s where property management services come in. Property managers can handle the burden of these tasks for you. This way, you can keep tenants happy, but you don’t have to burn yourself out doing it. Plus, they’re specially trained in rental industry best practices so that your business stays in good hands. Some of the duties they can take care of include:
- Marketing
- Tenant communications
- Property maintenance and repairs
- Technology installations and implementation
- Legal compliance
- Rent collection
- Accounting
- Tenant screening
We even have a built-in online portal, so you don’t have to worry about creating one of your own. So call us today to gain a truly passive investment!