The growing significance of online reviews in the rental market was highlighted in the 2024 Property Management Industry Report produced by Reputation, the world leader in reputation performance management. The study, which examined more than 336,000 evaluations for 11,300 multifamily homes, demonstrates unequivocally that, although desirable locations and first-rate amenities are important, online reviews from present and former tenants are what really influence rental decisions.
According to the Reputation research, an estimated 55% of renters need a property to have at least four ratings in order to even consider it, and 81% of renters think reviews are vital while looking for an apartment. Furthermore, according to 71% of renters polled, unfavorable evaluations can discourage them from even scheduling an apartment visit.
“The online opinions that renters encounter can significantly impact a property’s appeal, which has a direct impact on the property manager’s bottom line,” said Joe Burton, CEO of Reputation. “Engaging effectively with tenant feedback has become a critical business function. For property managers, the difference between success and failure often hinges on reputation management. Proactively managing customer feedback sets you apart from competitors, fosters long-term loyalty, and sets the stage for business growth. Neglecting it poses a risk no property manager can afford.”
Key Insights for Property Managers
The report provides property managers with a number of crucial insights. Property managers classified as “Top Tier” understand the importance of review management and make a constant effort to raise their ratings and scores. The “Bottom Tier”—those who disregard online reviews—are lagging behind and finding it harder to draw and hold onto tenants as the rental market gets more competitive.
With an average rating of 4.57 stars, the Top Tier outperformed the industry average of 4.13 stars by 0.44. With an average rating of 2.76 stars, the Bottom Tier came in 1.81 stars below the Top Tier and 1.37 stars below the industry average.
Excellent property managers shine in a number of crucial reputation management domains. Their solicitation of reviews is consistent, yielding 47% more reviews each month per location than the industry average. Additionally, they continue to have remarkably high response rates to both positive (98%) and negative (97%) reviews, indicating their dedication to openness and client satisfaction. Bottom-tier performers, on the other hand, reply to only 72% of positive evaluations and 66% of negative reviews, even though they receive the fewest reviews.
For all property managers, the most important lesson is that soliciting evaluations on a regular basis and answering them will raise your rating overall. Frequently asking for reviews also contributes to keeping feedback up to date, since 61% of customers find evaluations more than a year old to be much less valuable.
Property Managers Forging the Path Forward
Property managers who could be ignoring their internet presence should take note of the Reputation 2024 Property Management Industry Report. Good reputation management is essential for corporate success and competitive advantage in an increasingly digital environment.
The paper highlights that comprehensive reputation management techniques are vital as the multifamily housing business undergoes continuous transformation. To expedite review requests, responses, and analyses, property managers ought to utilize solutions like Reputation’s online reputation management system more frequently. These technologies monitor comments on several channels, guaranteeing prompt and efficient responses. By doing this, managers build stronger bonds with their clients, provide better services, and raise their Reputation Score overall.
To read the full report, including more data, charts, and methodology, click here.
