Pet-friendly options topped the list at 36%
75% of Renters Will Pay for Additional Services
Three-quarters of renters are willing to pay an additional monthly fee for at least one added service, according to a new report from Foxen.
Foxen, a proptech firm delivering value-add solutions for multifamily owners and operators, released its “The Renter Value Report,” which features insights from nearly 1,000 U.S. renters. The report explores what services residents are willing to pay for along with the transparency they expect with the fees.
According to Foxen, renters are willing to pay for services that address something they care about, whether their pets, financial wellness, or damage protection. Pet-friendly options topped the list at 36%, followed closely by rent reporting at 31%, faster maintenance response at 29%, and a damage liability waiver at 27%.
However, the biggest barrier for renters is a lack of clarity and transparency, with confusion about how service fees are factored into the full cost of renting. The majority of renter respondents, 90%, said they clearly understood which fees were included in their rent with their last lease and 82% reported understanding which services cost extra, 55% still were surprised by at least one fee or charge.
“Transparency and choice around ancillary services benefit both renters and property managers, but regulatory scrutiny and shifting fee landscapes can make it difficult to execute in practice,” said CEO Kevin Jacobson. “Operators are trying to figure out how to offer the NOI-building ancillary services residents want, without catching them off guard when rent is due. Transparency is the clear answer, but true transparency doesn’t end with a well-outlined lease. It takes consistent, clear resident communication.”
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Additional findings form the report include:
- 43% of the respondents noted having the option to participate made them feel the fee is worth paying, even higher than the 41% who chose price for value. In addition, 38% said they would like the ability to cancel or change their choice at any time throughout the lease agreement;
- Over two-thirds of the respondents said they felt empowered during their last leasing process. However, a third of renters said they didn’t feel empowered during the leasing process, which Foxen noted could stem from a lack of access to information or choice;
- Two-thirds also said a self-service portal to review, enroll in, or opt out of services would make them more likely to participate in ancillary services. The number climbed to 80% for Gen Z and millennial renters; and
- Nearly three-quarters of respondents said they are willing to use artificial intelligence (AI) for renewal and document reminders, while 70% and 68% said they are willing to use AI for maintenance scheduling and comparing optional services, respectively.
“Renters see the value in rent reporting services, damage protection waivers, and pet-friendly living, but they still need clear communication about what the associated fees cover and why they exist,” added Jacobson. “Whether it’s a brand-new renter signing their first lease or a long-term resident renewing for the fifth time, operators should clearly communicate the value these offerings deliver and provide renters with choices.”
Source: Multifamily Executive
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