Four Trends Coming to the Rental Housing Industry in 2020
From June 27–29, 2019, over 10,000 attendees gathered in Denver, Colorado, for the 2019 National Apartment Association (NAA) Apartmentalize Conference. Over the course of three days, attendees and exhibitors shared insights and learnings into the current and future state of the rental housing industry. As a first-time attendee, these were our top four takeaways for the biggest trends coming to the rental housing industry for the remainder of 2019 and 2020.
Trend #1: Gen Z Is the Next Big Focus
Everyone is concerned about millennial consumers, but over the next decade, Gen Z will grow from 8 million to over 55 million in the US workforce. Unlike previous generations, Gen Z has experienced technology their entire lives, so leasing and marketing campaigns should incorporate the use of technology and reach Gen Z where they are most active, on apps and the internet. Gen X also places a high priority on trust, equality, and more casual, personable messaging that speaks to them like a friend. Businesses in the rental housing industry should ditch overly formal language in exchange for casual messaging to successfully reach Gen Z prospects.
Trend #2: Rent-Payment Reporting
Despite rent payments accounting for a hefty percentage of a renters’ monthly expenses, many renters aren’t currently receiving credit for those payments on their credit report. In a recent study by TransUnion, 70% of renters reported they would be more inclined to choose a property where landlords offered rent-payment reporting. This gives the rental housing industry the unique opportunity to create additional value for their properties and residents by offering rent-payment reporting. This reporting not only helps build a person’s credit history, but it also helps drive positive rental payment behavior and reduce delinquencies for property management companies.
Trend #3: Technology, Technology, Technology
Technology for the rental housing industry is projected to continue growing. There’ll be tech solutions offered for every aspect of property management, including: • Landlord communication • Energy conservation • Climate control • Security • Social communities • Fitness The top tech tools renters are requesting include: • Online payments • Free Wi-Fi • Charging and docking stations • Keyless door entry • High tech fitness centers • Outdoor heaters and fireplaces • Hot tubs It’s important to remember tech amenities for renters of all ages are best viewed as a revenue builder. This means they can often be offered for free or as a subscription service to tenants to generate additional streams of revenue to offset costs.
Trend #4: New Rental Incentives
Rental incentives have long been used to attract and retain tenants, but instead of offering a discount on rent, which was the industry standard, there’ll be a shift towards digital rewards, such as e-gift cards. Incentive budgets average $500–$1,000 per tenant, and products like Reward Link, an e-gift card incentive, offer property managers the ability to easily send digital rewards to tenants. This gives tenants instant access to a catalog of hundreds of top brands, so they can choose how they spend their incentive. Contact us to learn how Rewards Genius—our free, self-serve rewards portal—makes delivering the Reward Link to tenants easier than ever.