As more next generation residents enter the rental housing market, renter priorities and expectations evolve. To appeal to these new preferences, improve the resident experience, and stay competitive, multifamily owners and operators need modern solutions. Our Chief Revenue Officer, Ed Wolff, sat down with Amenitize or Die host, Scott Patterson to discuss what value-add amenities properties can implement to appeal to the wants and needs of modern-day renters while also driving NOI.
Rent growth has allowed property operators to generate healthy NOI boosts. Understandably, the increase in rent has led to renters becoming more financially savvy and expecting more value from their communities. Certain amenities and features like modern appliances, high speed Wi-Fi, and coworking spaces to name a few, were once considered luxuries but are now standard expectations. In other words, the more residents pay for rent, the more value they expect in return.
Luckily, properties don’t have to sacrifice NOI to meet modern renter preferences. For example, whether a community offers money-saving flexible rent payments and security deposit replacements like lease insurance is often a determining factor for renters hunting for an apartment. Today’s renters increasingly demand financial flexibility to break down their expenses into monthly payments, and subscription-based amenities meet this demand.
“Macroeconomic factors are truly impacting housing affordability,” said Ed Wolff. “Property management companies see LeaseLock as an amenity that can be provided to their renters at a nominal cost and that can be paid with their rent, native in the workflow. Renters can then move in without paying an upfront security deposit.”
Economic uncertainty in the past year has also had its impact on multifamily operations. With the risk of financial loss from slowing rent growth and delinquency, growing compliance concerns around new legislation, and ongoing talent retention challenges, property efficiency remains strained. As a result, many operators are re-evaluating their tech stack to include proptech solutions that improve operational efficiency, mitigate risk, and grow NOI—all while enhancing the resident experience, too.
“The fact of the matter, it has forced property management companies to look at their tech stack and evaluate their best-of-breed solutions with the ultimate goal of not only driving NOI but reducing expenses,” Ed said. “These new technologies are really changing the landscape of multifamily in a pretty significant and meaningful way and I don’t see that changing anytime soon.”
To stave off the negative impacts of an uncertain economic climate and lessen the blow of financial loss, property operators are implementing data-driven technologies like LeaseLock’s financial performance technology that allow them to more accurately forecast potential loss and better protect their assets. On top of achieving more efficient and valuable rental properties, properties are able to provide more affordable and flexible move-ins for their residents.
“We’re the only lease insurance product on the market that replaces deposits altogether, but at the end of the day, we’re a data and analytics company with access to millions of ledgers that prescribes the right coverage per asset. This empowers owners and operators to maximize the true value of the asset,” Ed added.
Listen to the full Amenitize or Die episode with Ed Woff here.