In the 2020 National Multifamily Housing Council & Kingsley Apartment Resident Preferences survey, 373,000 residents living in 5,336 communities across the U.S. shared their feedback on what renters want. Millennial renters, particularly college-aged adults, expressed their most desirable features in rental housing. Hot topics for the year included parking, sustainability, health, and security. Amenities in these categories interested more than 50% of respondents. Young renters’ top 10 interests Adult renters ages 25 and under were asked which apartment features and community amenities interested them the most. The following 10 features topped their lists: 91% reliable cell reception 88% swimming pool 87% fitness center 85% controlled amenity access 84% secure, self-service, 24/7 package access 82% more storage space in apartment 83% recycling 79% visitor parking 75% common area grills 75% hot tub “The top three categories here– connectivity, swimming pool and fitness center– speak directly to what is top-of-mind for the typical student renter,” says Esther Bonardi, vice president, marketing at Yardi. “Available Wi-Fi to keep up with assignments and stay on top of their studies, a swimming pool that serves as a social oasis to unwind and relax with their friends, and a fitness center to maintain wellness in the midst of their chaotic schedules.” Bonardi adds, “One difference for students is that connectivity is a major factor in Wi-Fi reliability and speeds rather than cell phone reception. Reliable cell phone reception is a standard or necessity rather than an interest.” Reoccurring themes for college-aged renters It’s no surprise that connectivity is a prominent interest of Millennial renters. More than 91% of respondents listed reliable cell reception as a major interest. Nearly 70% were also interested in having Wi-Fi connectivity in common areas. Parking concerns appeared multiple times on the list of young renters’...

A stellar online marketing strategy can be thwarted by negative reviews. The 2020 National Multifamily Housing Council & Kingsley Associates Apartment Resident Preferences Survey reports that 33% of renters highly value online reviews when deciding on an apartment. Are your reviews working for you or against you? Take the four steps below to ensure your online reviews are an asset. Who is paying attention to your online reviews? Renters of all ages use the internet for product research. Renters ages 25-34 years value online reviews the most. Nearly 40% of Millennial renters “highly value” the content of online reviews. While all your residents appreciate good customer service, younger renters are more likely to take their opinions to the web. They’re also more likely to seek out the opinions of others before deciding on a property. While some of the young renters are residents, most are prospects. Curiously, they’re searching out negative reviews. Studies show that since there are more positive reviews than negative ones, negative reviews are given greater value. Low-star reviews are scarce, so they’re held in higher esteem, like rare gems or box seats at a sporting event. That is why dissatisfied residents need extra care. Per the White House Office of Consumer Affairs, dissatisfied customers typically tell nine to 15 other people about their experience in person. The availability of online reviews can quickly escalate their reach. The negative review of a dissatisfied resident will reach hundreds of prospects each day, prospects who are already looking for negative reviews to narrow their apartment options. The four tips below can help you avoid and mitigate negative online reviews while boosting your positive online presence. Resolve issues online before reviews are posted online When renters have a concern, they are going to get online....

We’ve all heard that renters are interested in smart home devices. How much are they willing to pay for them, though? We dive into the 2020 National Multifamily Housing Council (NMHC) & Kingsley Apartment Resident Preferences Survey to find out. What renters value is determined by how much they are willing to pay. The Resident Preferences Survey set out to put a monthly price on smart home features that renters crave. Nearly 373,000 renters living in 5,336 communities across the U.S. submitted their opinions on desired gadgets and pricing. The 2020 report is the largest compilation of apartment resident insights to date. Let’s take a look at which smart home features are most valuable to renters. Most Valued Smart Home Features All valuable smart home gadgets are connected to the internet of things (IoT). It takes more than internet connection for renters to value a gadget. The survey reveals that the most valuable smart home features are those that offer a combination of benefits in a single gadget. One of the most valuable smart home features makes the unit more comfortable, functional, and healthy. Survey respondents are willing to pay $36 for smart or dynamic glass. The technology helps to moderate indoor temperatures. It also reduces glare on display surfaces like televisions and tablets. Additionally, the dynamic glass promotes better health by blocking harmful light rays from the sun. Smart locks are the second most valuable. This product also multitasks: it offers the convenience of keyless entry as well as a layer of security. Most smartphones are protected with face recognition, fingerprint scanners, or PINs. An authorized user must be present to unlock the phone and then use an app on the smartphone to manage the lock to the unit. Renters are willing to...

Your resident portal is a convenient and secure connection to your renters. While some renters like to access the resident portal via computer, studies show that most renters prefer to use a mobile app. If your current resident portal doesn’t offer a robust mobile option, you’re missing out on three key points for resident satisfaction. What renters want: convenience and efficiency with a mobile app According to the 2020 National Multifamily Housing Council (NMHC ) & Kingsley Apartment Resident Preferences Survey, community mobile apps are in high demand. Community apps permit a secure and mobile-ready way for users to access resident portals without using a web browser. Renters access mobile apps directly via smartphone or tablet, two devices that most of us always have within reach. In contrast, websites are best viewed via web browser on a laptop or desktop computer, which we don’t always have on hand. A community mobile app can promote renter satisfaction in three distinct ways. Mobile apps improve communication, task management, and daily operations for renters Residents prefer to communicate via mobile app more than conventional methods. About 60% of survey respondents prefer for leasing management to contact them via mobile app. Only 17% prefer contact through the website portal. On average, 64.5% of renters prefer to receive notifications through a mobile app. For example, 71.5% of renters want to receive mail and package notifications through the community mobile app. An app is also a preferred way to manage a household. On average, 58% of respondents prefer to pay rent via mobile app compared to only 23% who want to pay through the website portal. About 64% of renters want to submit maintenance requests via app. Even a formal event, like a lease renewal, is suitable for the app:...

Online reputation management matters. How masterfully a company handles feedback can give it a huge advantage over the competition as prospects shop around for a new rental. ORA Power Ranking shifted through the online reputations of 75,000 rental properties. The following list represents the National Multifamily Housing Council (NMHC) top 10 best-ranked managers by online reputation. The companies below received the highest ORA scores. For perspective, the national average is 60.39. Each of the companies below ranked 71.58 or higher, earning top marks for online reputation. Yardi client The Bozzuto Group once again took home the first place title. The Bozzuto Group has ranked number one in online ratings for four years. To maintain its ranking, Bozzuto increased its score by 2 percent from last year, improving from an ORA rating of 79.13 to 80.76. That 2 percent was needed to stay ahead of second place performer AvalonBay Communities, another Yardi client. With an ORA score of 80.17, it was a close call for the top two positions. In third place comes Gables Residential. This Yardi client received an ORA score of 76.98. This is a noteworthy, 4 percent improvement for the Atlanta-based company. MAA nips at the heels of Gables Residential with a score of 76.44. Its 3 percent improvement in the ORA score kept the organization in the top five. Rounding out the top five with a stellar performance comes Cortland Partners, a Yardi client. This underdog improved its ORA rating by a whopping 10 percent, reaching 75.20 this year. The following companies complete the top 10 rankings. 6. Camden Property Trust 7. RAM Partners (Yardi client) 8. Pegasus Residential (Yardi cient) 9. Aimco 10. Greystar (Yardi client) Congratulations to all of the NMHC Top 10 Managers, especially our valued Yardi...

We’d need 4.6 million new apartments by 2030 to meet demand for rental living and keep prices in check, reports the National Multifamily Housing Council. That’s about 373K new units each year on average, a number that’s rather optimistic considering the pace of apartment construction in the last decade. So how feasible is this plan? A recent study from RentCafe on the apartment market suggests the country’s growing renter population need not be too concerned. According to data from real estate data provider Yardi Matrix, apartment construction is at a 20-year high, with most of our country’s biggest cities seeing significant upgrades in rental stock. After a slow post-recession period, the market started rebounding in 2012 and by 2014 new supply had amounted to more than 237,000 units delivered in one year, well above historical averages. Between 1997 and 2006, annual completions averaged 212,740 units. In 2017, apartment completions are expected to top 345,000, a 21% increase compared to last year’s deliveries when more than 285,000 units saw the light of day. Hot Urban Markets See Rents Softening as Developers Ramp Up Apartment Construction After peaking in 2014 at 5.1%, monthly rent prices rose just 1.5% to $1,316 in May, the lowest annual growth rate we’ve seen in more than three years. In 2017, the average U.S. rent is expected to increase a modest 3.9%. Does this mean apartment prices are finally taking a break from rent growth? Apparently so, and thanks to intensified apartment construction, that’s even the case with some of the country’s historically tight (or rather outrageously expensive) markets. Close to 6,200 new units entered the San Francisco metro area in 2016, with approx. 5,400 apartments expected to be delivered this year and another 9,500 under construction. While demand is still strong...

Before the presidential election, the consensus economic forecast was more of the same slow-growth environment that has prevailed since the Great Recession ended. However, the election of Donald Trump changed expectations for domestic output, prompting interest rates to rise. Yardi Matrix vice president Jeff Adler and CBRE Americas head of research Jeanette Rice spoke to these changes and more during the Apartment Markets: The Macro Perspective panel at the National Multifamily Housing Council’s recent Apartment Strategies Outlook Conference. The panelists discussed what rising interest rates could mean for an interest-rate sensitive asset class such as commercial real estate. Adler asserted that the impact will be determined by how much and how fast rates increase and property performance. A prolonged period of rising rates could diminish property valuations, but at the same time a modest decline in values caused by a one-time bump in rates could be offset with revenue increases. Although it will take some time before the true impacts can be fully gauged, if interest rates are an indication, then economic productivity and inflation could rise in the coming years. The panelists deliberated upon what happens to cap rates as interest rates and (by extension) property values move higher. Adler believes that Cap rates are likely to moderately rise and valuations may take a slight hit as interest rates increase, however the key factors will be the pace of rate increases and the concurrent revenue growth. He shared a model that Yardi Matrix® created to predict the impact of both interest rate and revenue increases and determined that mild and steady interest rate increases can be significantly offset by healthy revenue growth, and as a result valuations should remain stable. Looking at an internal rate of return (IRR) calculation, an increase in interest...

Airbnb announced the official launch of its multifamily housing program. The Friendly Buildings Program welcomes collaboration with apartment owners and addresses their apprehensions regarding transparency and accountability—that is what it attempts to do, at least. Nearly 35 percent of multifamily property owners are interested in a home-sharing program and 24 percent of owners were unsure, reports the new National Multifamily Housing Council (NMHC) home-sharing survey. Nearly 60 percent of multifamily property owners are open to the idea of Airbnb onsite. The market is a powerful growth opportunity for the company if it can overcome owners’ concerns. In the past, apartment owners routinely resisted the use of their properties for short-term rentals. The legalities of renter subleasing and inadequate insurance provisions topped the list of objections. Security and accountability trailed close behind. The Friendly Buildings Program proposes the following solutions: The program brings property owners into the loop of transactions. Owners can establish parameters for unit-sharing, including restrictions. Short-term rental provisions are made easy through lease addendums. Owners are notified of home sharing activity including reservation details and guest information. Owners receive regularly scheduled activity reports. The program protects against liability claims up to $1 million USD that occur in a listing as well as up to $1 million against third party claims of property damage or bodily injury. Kim Duty, Senior VP, Public Affairs & Industry Initiatives at NMHC summarized many owners’ thoughts on the insurance proposal, “A $1 million insurance policy is not close to enough to cover the potential risks.” Until more can be done to reduce liability, Airbnb faces a formidable obstacle. Most owners won’t move forward without a feasible insurance solution. Mark Stringer, executive Vice President at Avenue5 Residential took a quick survey of the room. More than 75 percent of...

If you think cybersecurity is “just an IT issue,” better think again. Experts agree that cyber risk in the multifamily industry is largely underestimated, given the volume of personal and financial data multifamily companies collect and maintain about their prospects, residents and employees. And the fact that many real estate organizations rely on third-party service providers to collect and protect data further increases exposure to damaging cyber incidents. What are some of the common risk factors? Using disparate software solutions and multiple vendors with various interfaces and logins elevates exposure to breaches. To further complicate matters, information security programs in the multifamily industry tend to be relatively less sophisticated compared to more heavily regulated sectors such as banking and retail. Since cyber criminals will always take the path of least resistance, this poses a major threat to the industry as a whole, which maintains information about tens of millions of Americans. And after a well-publicized breach in 2014, the multifamily industry is — or should be — on high alert. To not only reduce risk but also to increase operational efficiencies, many companies have made the move to a single platform — and now consider it a best practice to consolidate core property management and accounting along with ancillary products in one database supported by a single vendor. And while no business can expect to achieve perfect security, in the current cyber threat landscape with so much at stake a comprehensive plan — and one point of contact for software and services — can mean a direct line to better peace of mind. At the NMHC 2016 spring board meeting, panelists emphasized that cybersecurity is not simply an IT problem, but rather an enterprise risk management issue. Developing a strong cybersecurity program is not...

Orlando—Overdevelopment? Affordability? Rising capitalization rates? An economic downturn? Falling stock market prices? Bring it on, the multifamily market can handle it this year. At least that seemed to be the consensus at the National Multifamily Housing Council’s annual meeting, held this week in Orlando. Panelists at the conference’s Apartment Strategies Outlook event were generally bullish on the outlook for the sector in 2016. “It’s a great time to be in apartments,” is how one panelist summed it up. The litany of positive fundamental drivers are familiar by now: vacancy rates are near historical lows, with demand driven by strong job growth, the growing number of Millennials and the increasing propensity to rent among young and older renters. Rent growth since the last recession has far outpaced long-term average, while properties values have soared. The market is “Awash in Capital.” That punctuation is not a typo, but the title of a panel at the conference. Bob White, president of Real Capital Analytics, released full-year 2014 numbers that showed multifamily sales at a record high, up 32 percent over 2014. Cap rates and cross-border investment are at all-time highs, although White said that prices are plateauing and appreciation is starting to slow. The conditions that produced the influx of capital seem likely to continue into 2016. The U.S. economy, as mediocre as GDP growth might be by historic standards, remains a beacon of stability compared to the struggling economies of Europe and Asia. Not only is that attracting sovereign wealth funds and pension funds from overseas, but there is an influx of high-net-worth investors from China who want to own U.S. real estate, particularly multifamily. That is increasing competition for multifamily assets, not just Class A properties in core markets, but small- and medium-sized properties in...

The results of a study published Tuesday, jointly funded by the National Apartment Association and National Multi-Housing Council, offer one of the most comprehensive looks to date at the size and scope of the nation’s multifamily industry, and the economic impact of its 35 million residents. The survey was conducted by Stephen S. Fuller, Ph.D., George Mason University Center for Regional Analysis. The numbers are impressive, illuminating how many residual benefits can be attributed to apartment renting. The findings in the study are validation of the construction and development patterns observed by walkable urbanism researcher Chris Leinberger. Renters want urban apartments with services and amenities within easy reach.  As he told us last week: “Any list of walkable metro areas that are doing well is also the list of best performing real estate markets.” The survey looks at major metros Atlanta, Boston, Chicago, Dallas, Denver, Houston, Los Angeles, Miami, New York, Philadelphia, Seattle and Washington, D.C.  in detail as to how apartments contribute to their economies. To see state-by-state breakdowns on the number of apartment residents, apartment homes, jobs supported and contribution to statewide economy, visit the Apartments: We Live Here interactive infographic. Though new construction gets a lot of attention, especially post-recession, don’t overlook the economic boost provided by ongoing maintenance of existing apartment homes. According to Fuller: “Often overlooked as an economic contributor, the industry spent $68 billion operating and maintaining the nation’s 19.3 million apartment homes in 2011 alone. That’s 4.5 times the amount spent on multifamily construction,” he wrote. And as more apartment communities are constructed to meet growing renter demands, those numbers are only going up. Here’s a quick look at some of the highlights from the study. Today: 34.6 million: number of apartment residents in the United States...