Why the Rental Market is Increasingly Tenant-Driven
As technology advances, the rental market has seen a significant shift towards being tenant-driven.
Why?
Because people want convenience, quick resolution times, and more self-service options. And things like virtual tours, online scheduling for viewings, and online rental applications are making this possible.
New data from thousands of rental listings shows just how much of an impact this is having in the rental property world. Here’s an in-depth look at this shift and what it means for landlords.
How Tenants Are Driving the Rental Cycle
Prospective tenants now have more control over the rental process than ever before. Here’s a typical tenant-driven workflow, taken from our own vendor, ShowMojo:
When you use automated scheduling platforms like these for your rental showings, the prospect becomes the driver of the entire process:
- Self-Screening: Prospective tenants first ensure they meet the property’s criteria, filtering out unsuitable candidates early on.
- Self-Scheduling Showings: They select a convenient time for a showing from available slots.
- Automated Communication: Details of the showing are automatically communicated to both the prospect and the agent. Current occupants are also notified.
- Flexibility for Prospects: Prospects can reschedule or cancel showings on their own, reducing the incidence of no-shows.
- Auto-Confirmation: Prospects receive automatic reminders to confirm their showing within 24 hours.
- Showing Attendance: The prospect attends the showing.
- Automated Follow-Ups: Text and email follow-ups are sent after the showing.
- Feedback Collection: Prospects complete a feedback survey, providing valuable insights.
- Property Updates: Any updates regarding the property are sent to the prospect.
- Application and Rental: The prospect submits an application, leading to the rental of the property.
Notice how few touch points there are here for the agent?
Almost every step is initiated by the tenant or automated by the scheduling system. So if you’re a DIY landlord or a property management company (like us), this can be a huge gamechanger.
What This Means for Landlords
We’ve been in business for over 25 years, so we’ve gone from the old-school paper and pen approach, all the way through to using AI, virtual reality, and advanced automations to streamline our processes.
So take it from us, there are a lot of benefits to embracing a tenant-driven approach like this for your scheduling, like:
- Consumer Expectations: Today’s consumers and tenants want more self-service options. They prefer the convenience of managing their own schedules and interactions with minimal intervention. Providing these options leads to higher satisfaction rates and increased efficiency.
- Faster Property Rentals: Allowing prospects to self-schedule showings ensures you never miss an opportunity to showcase your property. Given that data reveals days on market are increasing nationally, this capability is crucial. Faster scheduling translates to quicker turnovers and reduced vacancy periods.
- Minimized Wasted Time: Easy cancellation and rescheduling options decrease the likelihood of missed showings. Prospects appreciate the flexibility, and landlords benefit from better time management. No-shows become less frequent, and agents can focus their efforts more effectively.
Sounds good, right?
What to Do About It
If you want to let your prospects drive the rental application process more, here’s what you can do:
- Leverage Technology: Utilize advanced scheduling platforms to streamline your operations. Again, see few touchpoints there are for the agent in this self-service model? Automation handles most of the communication, allowing agents to concentrate on high-value tasks.
- Choose the Right Property Management Company (PMC): If you don’t manage your properties personally, make sure your PMC is fully leveraging technology. A tech-savvy PMC ensures no prospect slips through the cracks, maximizing your rental potential and minimizing vacancies.
- Embrace Self-Service Options: Implement self-service options like ShowMojo that cater to tenant preferences. By meeting consumer demands for convenience and control, you enhance the rental experience and attract more qualified prospects.
- Collect and Utilize Feedback: Use feedback from prospects to improve your properties and processes. Automated surveys provide valuable insights that can guide property enhancements and customer service improvements.
The rental market is competitive, and adapting to these new dynamics keeps you ahead.
Conclusion
The shift towards a tenant-driven rental market is undeniable. By adopting self-service scheduling platforms, landlords can streamline operations, attract quality tenants, and reduce vacancies.
Embracing technology not only meets modern consumer expectations but also positions you for success in an increasingly competitive market. Investing in the right tools and strategies now will pay off as the rental market continues to evolve.
Want to find out more about our data-driven approach to property management? Contact us for a free consultation about your rental units.