As renters explore their housing opportunities, an increasing number of property managers are finding they must adjust on the fly to keep pace with renter expectations.
SmartRent Inc., a provider of smart communities solutions and smart operations solutions for the rental housing industry, has released the results from a recent survey focused on energy management trends across rental housing. Conducted in partnership with Morning Consult, the survey found that renters are increasingly prioritizing energy-efficiency and cost-saving technologies when choosing a home.
As utility costs continue to rise–the price of electricity alone is up 34% since 2020—92% of survey respondents said that reducing their monthly utility expenses is “very important” or “somewhat important” when it comes to choosing a place to live. Sustainability is also a strong motivator, with 75% of renters polled stating that it is important to them to reduce their environmental impact.
“Renters expect property management companies to help limit their utility bills through the use of smart home solutions and energy-efficient property technologies,” said Frank Martell, President and CEO of SmartRent.
Energy-Efficiency Awareness
More than 63% of survey respondents reported experiencing a utility bill increase over the last year, with 35% of those who saw an increase reporting hikes of more than $51 per month. An additional 76% of respondents are “very concerned” or “somewhat concerned” about their utilities increasing over the next year, adding a layer of economic stress that they are eager to mitigate.
“The survey showed that renters are keenly aware of their utility spending, and they’re generally aware of the technologies that can help to reduce their energy consumption,” added Martell. “It was also clear that they expect property management companies to help limit their utility bills through the use of smart home solutions and energy-efficient property technologies. Meeting that demand is essential to attract renters, drive resident satisfaction and retention, and build trust between renters and management teams.”
Only 48% of survey respondents feel their current property manager effectively communicates about their unit’s energy usage, and just 44% believe their property manager effectively communicates and cares about helping residents reduce utility costs.
Property Managers Implementing Change
The survey identified several energy-related technologies that respondents said could influence their decision to sign or renew a lease, including:
- Energy-efficient appliances (69%)
- Smart thermostats (58%)
- Online energy trackers (51%)
The absence of energy-efficient technologies has a similar influence on rental decision-making, as some top deal-breakers revealed by those polled include:
- The inability to control in-unit heating and cooling (69%)
- High energy costs (68%)
Paying the Price
Approximately 32% of survey respondents said they would be willing to pay more for rent if reduced utility costs meant their overall monthly spending remained the same. An additional 33% said they would pay more in rent if the unit was energy-efficient and offered consistent savings.
Redfin recently found that 48% of newly built apartments completed in Q1 of 2025 were rented within three months, up slightly from 47% reported Q4 of 2024, and 46% in Q3 of 2024. While the recent uptick in the rental absorption rate is small, it is notable because for much of 2021-2023, the absorption rate was declining, meaning the odds of an apartment getting rented out quickly were declining. It’s likely inching up now because the number of new apartments hitting the market is falling. That means renters have fewer options to choose from, making it slightly easier for landlords to fill units fast. Roughly 97,000 new apartments were completed in Q1—the lowest seasonally-adjusted level since Q4 of 2023.
Apartments.com recently examined the tactics landlords and property owners were using to attract renters, with affordability still top of mind for many. Incentives like a free month of rent were serving as leverage for property owners seeking to house tenants. The study found that 36% of renters said a free first month of rent would be the strongest factor to signing a lease when choosing between comparable apartments.
But these concessions may be ending as the rising prices of U.S. homes continues to drive more to the rental market.
With the strength of concessions as a driver for landlords, the Apartments.com survey found that 88% of renters said they would consider overlooking minor flaws in an apartment for a good rent concession, while nearly a third of renters value a rent concession that provides ongoing value throughout the term of their lease, and 95% of renters said a concession mentioned in a listing would make them more likely or potentially more likely to inquire about the property.
