By Brittany Cotton
Following the considerable surge and expansion of the American rental market after the COVID-19 pandemic, prospective tenants and landlords are seeing a period of transition. Rent growth began cooling down in 2024 despite higher demand by tenants; this slowdown is part of the market reaction to the wave of new construction activity that was partially suspended during the pandemic.
The transition period is also being shaped by changes among prospective tenants and how they perceive the market. Renters are still concerned about the affordability factor, but they are also aware of the economic realities impacting their monthly rental payments. What renters want these days is to see their higher payments justified by certain essentials, conveniences, amenities, upgrades, and extras that can improve their quality of life. With all this in mind, let’s review what modern tenants are looking for:
What Do Modern Renters Want in Their Next Home?
According to a 2023 survey conducted by the National Multifamily Housing Council (NMHCS) among American renters, more than 80% are interested in apartment complexes instead of townhomes, duplexes, or single-family residences; this statistic corresponds to a trend that has been on the rise since before the housing bubble crisis of the late 2000s. From the same survey, we can glean the following:
Home Features and Amenities
A washer and dryer combination is what renters want the most, followed by air conditioning. These two features were mentioned by more than 90% of NMHCS survey respondents, and many of them stated that they don’t bother looking at rental listings that do not mention them. Energy efficiency is also important to modern renters; many of them will look for Energy Star stickers on appliances, and they may even use their smartphones to look up the SEER scores of HVAC units.
Soundproof walls and high-speed internet access are in high demand among renters these days, especially those who prefer living in apartment complexes located in large metropolitan areas. There was a time when tenants assumed that higher monthly rates meant that services such as water and garbage collection were included; that assumption has now switched to broadband internet access. Landlords and property managers offering single-family residences do not get these requests for soundproofing and high-speed internet as often, but companies that provide broker of record and managing broker services are reporting high demand among apartment hunters.
Patios and balconies are in greater demand now than two decades ago, particularly in townhouses, condo units, and apartments. Interestingly, this is not a common request among tenants who look for duplexes, garden villas, or single-family homes. As for home appliances, microwave ovens are more requested than dishwashers and garbage disposal units.
Suburban Comforts and Community Amenities
Swimming pools were the top amenity sought by Generation X renters, but only 70% of modern tenants request them. The top amenity these days is reliable wireless service. If you are a landlord with properties located in dead zones for cellular signals, you may want to consider installing a mobile reception booster or providing reliable Wi-Fi. In apartment complexes, non-smoking sections are appreciated by many tenants, but not as much as secure drop boxes for Amazon deliveries.
How to Get Lease Renewals in Today’s Market
If you are a landlord or property manager, you need to understand what today’s renters value. To keep your properties occupied and your lease contracts extended, you have to align your offerings with the evolving preferences of renters. Getting a lease renewal these days is a matter of creating a more attractive value proposition for tenants, which means that you should not skimp on what you originally provided. If, for example, you switched broadband internet providers to get a discount, but the cheaper service turned out to be unreliable, this could discourage tenants from renewing their lease contracts.
What Modern Renters Should Know About Lease Contracts
If you are a prospective tenant, don’t hesitate to let brokers and landlords know about your specific preferences; you must ensure that the amenities, extras, and upgrades you want are part of the rental agreement. Everything you insist upon during your search must be listed on the lease contract along with provisions that warrant your continued enjoyment. Let’s say the apartment you want includes a Samsung Family Hub smart refrigerator; how would you know it will be replaced with the same model if it stops working? These are the details you should look for before signing the agreement.
-Brittany Cotton is a writer who focuses on health, wellness, and a variety of other topics. In her free time, you can find her reading, trying new recipes, or playing with her dog.