2025 Spring Leasing Preview
Written by Michael Miller | 7 minute read
Residents and prospective residents are doing their homework when it comes time to find a place to live. Business operations have changed drastically over the past several years due to many factors, mainly the black swan pandemic event that has led the rental housing industry to its current state.
Gone are the days of property tours solely in-person, and potential residents are more knowledgeable than ever with the information they can gather on their own about the specific locations and communities they’d enjoy living.
Artificial intelligence (AI) has been a game-changer for the industry as well from components within to what some might consider science fiction.
“AI was the hot, hot, hot buzzword in 2024,” said Kelly Kutach, Chief Marketing Officer, BH. “Almost every tech company promised it, and some were thoughtful in how they implemented it. AI is here to stay.”
Last year was also a partial return to normalcy, said Ronda Puryear, President, Landmark Property Services. “Online leasing came to stay; leasing teams returned to the office. Resident and prospect payments are made through resident and leasing portals; receiving payments in the office is in the past. Fraud detection is being widely embraced, producing better qualified applications.”
Also in 2024, Bozzuto explored additional leasing strategies including expanding the shared staffing model. “This approach allowed us to optimize resources while maintaining the tailored, high-touch experiences our residents expect,” said Caroline Berry, Senior Vice President, Operations. “Our teams also leaned heavily into hyper-localized marketing campaigns, customizing efforts to reflect the unique interests and demographics of each community we serve.”
The company has implemented an on-demand approach to customer experience and service, allowing for 24/7 engagement, said Annie Wildasin, Vice President, Marketing, Bozzuto. “This system allows us to respond to inquiries within minutes – regardless of the time of day – empowering prospects to access real-time information on pricing, availability and schedule tours, all before a leasing representative begins their day.”
Maryland-based CAPREIT is using a centralized leasing program, which launched three years ago. “This initiative enables our off-site leasing specialists to handle all incoming leads and phone calls,” said Katie Nelson, Vice President of Marketing. “These specialists, who are dedicated CAPREIT employees, are trained to excel in managing leads and converting prospects into leases.” This initiative has “increased conversion rates by 20%-30% compared to the onsite team,” as well as schedule follow-up appointments and focus on resident experience.
“We found that having a common, specialized team dedicated to the screening task resulted in faster, more accurate application processing,” said Kutach of the centralized application screening team and process. “This team was able to more easily spot application fraud, minimizing future non-payment issues and bad debt.”
Challenges
One of AI’s biggest potential setbacks is its biggest benefit. While automation can churn out content and technology can be used for process efficiency, the art of not losing the human touch is vital to resident experience. “While technology can help us improve operational efficiency, we have to ensure that it is not creating experiences that feel impersonal, ingenuine or robotic,” said Kutach. “People value human interactions in building trust with brands, so we have to be mindful of how we balance technology with human experiences.”
Maintaining this balance of human touch and digital, tech experience will create meaningful interactions with prospects and residents, and according to Bozzuto, it begins at the initial interaction. “We prioritize transparent communication, which builds trust and confidence,” Berry said. “Self-scheduling tools, automated follow-ups and clear, upfront pricing have streamlined the leasing process, making it easier for prospects to take the next step.”
Some human experiences are often hard to find as recruiting and retaining staff was another top priority for the industry last year and moving forward. Bozzuto expanded its Employee Resource Groups to foster connection, trust and belonging. “These groups provide leadership opportunities, foster networking and host events that celebrate cultural observances, helping us attract and retain exceptional team members who bring their best to our communities,” said Berry.
Economic uncertainty is also on the horizon, which has the potential result of renters being cautious of their spending. “Striking the right balance between offering competitive rates and maintaining profitability will be essential in driving value for residents and clients alike,” Berry said. Inflation, rent caps and regulation are also among the top-of-mind challenges in 2025.
Making Technology Adjustments
As we travel further into the year, companies will be searching for ways to continue a successful path, navigating challenges along the way. More advanced technology is allowing the rental housing industry a way to smooth the edges of business and leasing operations. This isn’t always done by adding the latest and greatest either, but rather a sensible approach.
“While we’re not necessarily looking to implement something new, we are focused on refining our customer experience through the technology we already have in place, like virtual leasing agents, virtual and self-guided touring and nurturing programs,” said Kutach. “Where automation may have been a bit rigid in the past, AI is allowing us to have more conversational and natural interactions through these virtual experiences.”
Companies are now utilizing technology and AI to focus on other onsite aspects. “Technology is integrated through all aspects of the leasing process,” said Puryear. “From prospect inquiry through move-in, we are using technology partners to streamline our processes leaving time for our site teams to focus on the customer experience.”
The rental housing industry is also using AI and pairing it with data analysis for better customer interactions. Companies are using these tools to connect residents and the community as a way to create meaningful moments in time rather than a transaction. Technology has become a difference maker when looked through the lens of customer experiences. Companies are able to gather large swaths of information
and compile that data for practical use.
Greystar is using three main tools to help streamline the resident experience, according to Scott Berka, Senior Managing Director, Brand & Customer Experience. Resident apps for easy rent payments and maintenance requests; property websites to convert a higher percentage of prospects into residents; and consumer insights, including data, analytics and trends on residents’ needs.
The use of AI is omnipresent and continues to grow in functionally. Nelson says, “an AI-first approach is at the forefront of our initiatives as we understand AI plays a critical role in the prospect experience and content creation, among other things.”
CAPREIT is also casting a wider net digitally, using AI to create additional short-form and live-stream video content to reach the larger portfolio. The added use of technology and automation has also allowed CAPREIT the benefit of exploring more time connecting with prospective residents. “It provides analytics that helps us make better-informed decisions, and AI has machine learning to speak to our prospects more effectively,” said Nelson.
RailField Partners is using “a program that allows the leasing staff to send personalized videos as part of their customer interactions,” said Chief Operating Officer & General Counsel, Todd Watkins. Initial feedback is positive, but it is a little too early to be certain how the videos will be received in the long term.
“Leasing is evolving rapidly, and while technology is integral to enhancing the experience, the human element remains at the heart of what we do,” said Berry. “As we navigate economic uncertainty, rising competition and shifting renter expectations, our focus stays on building trust and creating a genuine sense of community. From personalized service and transparent communication to leveraging data and technology in innovative ways, every effort is designed to deliver exceptional experiences for our residents and prospects.”
Meeting Residents’ Expectations
According to Greystar data, residents are searching to stay in their homes for a longer period of time, and external reports confirm residents are staying in their units longer now than in past years. Residents are looking for agreements between 15 and 22 months. “We’ve responded by offering flexible lease options that not only meet the evolving needs of our residents but also help position us for continued success in a competitive market,” said Berka.
Resident expectations and satisfaction are paramount, so Greystar personalizes its approach by reaching out to residents after negative feedback. In part to curtail that and strengthen the connection to residents, a monthly appreciation renewal event is held at each community. “These in-person gatherings provide an opportunity to connect with residents on a deeper level, gain insights into their living experience and understand the factors that would encourage them to renew. By blending real-time feedback with personalized engagement, we can stay competitive and deliver an exceptional resident experience.”
Adding technology to the leasing process is helping BH meet and exceed resident expectations. “Fast, convenient, easy: That’s no longer a nice to have, it’s the expectation. …While technology can make the leasing process faster, easier and more convenient, it’s important to ensure we’re not forgetting that our customers are people who value personalized, authentic interactions to build trust,” Kutach said. “We are clear that our experience requires us to balance the efficiency that comes with technology with the humanness that our teams can deliver.”
Michael Miller is NAA’s Managing Editor.