Study shows 55% require a property to have at least 4 stars to even be considered.
New Property Management Report from Reputation Reveals that Online Feedback Significantly Impacts Renter Decision Making
Reputation, the global leader in reputation performance management, recently released its 2024 Property Management Industry Report, highlighting the growing importance of online reviews in the rental market.
The study, which analyzed over 336,000 reviews across 11,300 multifamily properties, clearly shows that while excellent amenities and prime locations matter, the real driver for renting a property comes from online reviews left by current and past residents.
The Reputation report found that 81% of renters consider reviews important when searching for an apartment, and 55% require a property to have at least 4 stars to even be considered. Additionally, 71% of renters surveyed stated that negative reviews could deter them from even touring an apartment.
“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 highlights several important insights for property managers. “Top Tier” property managers recognize the significance of review management and are consistently working to improve their scores and ratings. Those who neglect online reviews – the “Bottom Tier” – are falling further behind, hindering their ability to attract and retain renters as competition intensifies.
The Top Tier earned an average rating of 4.57 stars, which is 0.44 higher than the industry average of 4.13 stars. The Bottom Tier scored an average rating of 2.76 stars, which is 1.37 stars below the industry average and 1.81 stars below the Top Tier.
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Top-performing property managers excel in several key areas of reputation management. They consistently solicit reviews, generating 47% more reviews per month per location compared to the rest of the industry.
They also maintain extremely high response rates to both positive (98%) and negative (97%) reviews, demonstrating their commitment to customer satisfaction and transparency. By contrast, despite receiving the fewest reviews, bottom-tier performers have the lowest response rates, responding to just 72% of positive reviews and 66% of negative reviews.
The key takeaway for all property managers is that consistently requesting reviews—and responding to those reviews—will enhance your overall rating. Regularly soliciting reviews also helps keep feedback current, as 61% of consumers consider reviews older than a year to be significantly less valuable.
The path forward
The 2024 Property Management Industry Report by Reputation serves as a wake-up call for property managers who may be neglecting their online presence. In an increasingly digital marketplace, effective reputation management is a critical driver of business success and competitive advantage.
As the multifamily housing industry continues to evolve, the report emphasizes the need for comprehensive reputation management strategies. Property managers should increasingly leverage tools, such as Reputation’s online reputation management solution, to streamline review requests, responses, and analyses.
These tools track feedback across multiple platforms, ensuring swift and effective responses. In doing so, managers enhance customer relationships, improve service quality, and boost their overall Reputation Score.
Source: BusinessWire
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