With advanced technology influencing decisions for nearly three in four global renters, here’s how Canadian property managers can leverage software to meet demands and remain competitive.
In this article
- Nearly half of landlords don’t offer convenient technology options to tenants
- Technical glitches and limited customer support can blight the convenience and flexibility benefits provided by tech
- Effective communication can lead to reputational results, like positive reviews
- Property management software can be a valuable tool to help landlords deliver the features their tenants demand
Renters are experiencing high prices in today’s rental market due to inflation, rising interest rates, and growing competition from short-term rentals. As a result, landlords are facing increased competition.
To remain competitive, landlords must enhance tenant satisfaction, utilizing tools and technologies to improve the customer experience. According to Capterra’s 2024 Tenant Experience survey, nearly three-quarters (73%) of global tenants agree that using advanced technology like smart appliances and keyless entry can influence their decision to sign a rental agreement.
However, simply adopting new technologies isn’t sufficient. Landlords must also understand which factors are most crucial to renters in order to provide an optimal tenant experience. With this in mind, property managers should invest in the right property management tools to meet these demands, streamline administrative tasks, and maximize the value of their technology investments.
Capterra conducted a global survey in twelve countries, with a total sample of 4,800 tenants. Of this sample, 400 respondents were from Canada.* The survey offers insights into current digital trends and preferences among rental property stakeholders. Moreover, this article explores actionable strategies for property managers to use these insights to enhance operational efficiency, boost tenant satisfaction, and secure renter loyalty.
- Digital tools and technology for tenants are not yet widespread: 52% of tenants globally have digital tools included in their current rental properties.
- Well-implemented digital tools can improve tenant experience: 83% of global tenants using digital tools with their rental property say they are satisfied or extremely satisfied with them.
- Enhanced reliability and support are required in property tech: 42% of global tenants identify technical issues as a top challenge when using digital tools.
- Traditional communication methods are still prominent: Only 5% of global tenants prefer to use dedicated online portals to communicate with property managers instead of email or phone messages.
Nearly half of landlords don’t offer convenient technology options to tenants
With various digital tools available, tenants and property managers can use technology to enhance convenience, efficiency, and internal operations. Digitization in property management is increasingly accessible, and many tenants globally report having access to digital tools in their current rental properties.
According to our survey respondents, online payment and document portals are the most commonly used digital tools in rental properties. Still, nearly half of globally surveyed tenants do not have access to these digital tools in their rental properties. This showcases that, on a global level, a significant number of property managers have not yet implemented features to facilitate tasks or improve their tenant experience.
Meanwhile, the most appealing technologies globally for tenants without digital property management tools are remote security apps (35%), smart energy management (34%), and smart locks (34%).
These tools can simplify administrative duties and improve security and convenience for tenants and property managers. Since advanced technology can impact tenant choices, landlords should leverage these tools to differentiate themselves from competitors.
Canadian tenants have a lower property tech adoption rate compared to global figures
Canadian tenants do not stand out as having the highest adoption rate of property technology compared to other countries. In fact, the adoption rate for the majority of tools is below the global average. The tech included the most within current rental properties is online payment portals, with over a quarter (26%) of tenants having access to these. Half of tenants in Canada say landlords do not offer them convenient technology.
This tendency is also reflected by the group of tenants who are not leveraging digital tools. Out of the global respondents who currently do not have any of these technologies in their rental property, 65% of them express interest in having at least one of them. However, this number is slightly lower in Canada (60%).
The use of technology in rental management, along with tenants' desire for these offerings, presents an opportunity for property managers to align with tenant expectations by expanding their digital offerings. Here’s how each tool or feature can help:
Online payment portals: Simplify rent collection with electronic payments, improving cash flow and tenant satisfaction by providing convenient, remote payment options.
Online document portals: Digitize leases and policies for easy access, enhancing transparency, reducing disputes, and improving communication between tenants and property managers.
Online maintenance request portals: Enable tenants to submit detailed maintenance requests online, leading to quicker resolutions and improved tenant satisfaction.
Enhance security by allowing smart locks: Tenants want better security in the properties they are staying in. Smart locks can improve security by allowing keyless entry and remote access control, offering improved convenience and safety for tenants.
Remote security app: By providing monitoring and control over security systems, remote security apps can improve personal security while meeting tenant demand for advanced technological integration.
Smart energy management: Optimize energy usage to potentially lower utility costs and support sustainability practices for both tenants and property managers.
Technical glitches and limited customer support can blight the convenience and flexibility benefits provided by tech
Satisfaction levels are high when it comes to digital tools in property management. A notable 83% of global tenants who have digital tools available for their rental property say they are satisfied or extremely satisfied with them.
Using these technologies can have numerous benefits that can contribute to satisfaction levels. The main advantages reported by these tenants include convenience, efficiency, security, greater flexibility, and improved record-keeping.
What are the challenges of digital tools in property management?
Despite the benefits, some tenants using these technologies and digital tools face challenges. The top challenges for our global tenants include technical issues (42%), privacy concerns (35%), and limited customer support (29%).
Addressing these challenges is essential for maximizing the effectiveness of digital tools and ensuring tenant trust and satisfaction.
Property managers should focus on enhancing customer support and prioritizing data security to address tenant concerns and boost overall satisfaction. To tackle these issues, they should consider the following:
- Perform regular updates and backup procedures: Although technical glitches are a significant challenge when using software in rental management, 67% of global tenants using digital tools say they seldom or never experience technical issues. However, even occasional glitches can be problematic. When using any rental property technology, property managers should ensure that the software is updated regularly to the latest version to fix bugs and improve stability. Implementing robust backup procedures can also minimize data loss in case of technical failures.
- Seek software with comprehensive customer support: When selecting software for property management, ensure the vendor offers extensive customer support channels, like email, phone, and live chat. Additionally, providing tenants with detailed user guides and FAQs can help them resolve common issues independently.
- Use software that complies with privacy laws: Property managers should make sure that the software they use has encryption methods to protect sensitive data, such as financial transactions and personal information. This means using software that is compliant with data privacy laws and implementing strict user access controls to limit who can view or modify sensitive information.
Effective communication can lead to reputational results, like positive reviews
Understanding how tenants prefer to communicate is crucial for maintaining positive tenant relationships. Of the many features digital tools for property management can deliver, dedicated communication portals are not the most important for surveyed tenants globally. Instead, tenants primarily communicate via SMS text messaging or messaging apps (32%) and email (22%).
Only 5% of global tenants use dedicated online portals to communicate with their property managers. Since most property managers are accessible via phone and email, tenants may find it unlikely that a portal would offer better responsiveness than their personal devices and email accounts. With average response times for messages and calls ranging from within minutes (24%), a few hours (34%), or a day (22%), it appears that this is a habit that is likely to persist.
Still, efficient communication channels and prompt responses are crucial to tenant satisfaction and operational efficiency. Property managers should adopt communication platforms that align with tenant preferences and implement protocols for timely responses to inquiries and maintenance requests.
Meeting tenant needs, providing the tools they need to manage documents, send payments, request assistance, or feel secure, and communicating using the channels they want to use is worth the effort. Moreover, tenant satisfaction influences property managers' online reputation, with 82% of surveyed global tenants willing to leave a positive review if they were to provide an online assessment of their current rental property.
Maintaining these high satisfaction levels through the effective use of digital tools can further enhance online reviews and attract prospective tenants. With this in mind, property managers should actively solicit and manage online reviews, leveraging positive feedback to enhance property reputation and attract new tenants.
Property management software can be a valuable tool to help landlords deliver the features their tenants demand
As rental property management evolves, adopting digital solutions becomes crucial for maintaining competitiveness and meeting tenant expectations. Advanced technology like smart appliances and keyless entry can also influence whether a tenant signs a rental agreement.
Landlords should leverage digital tools like property management software for tasks such as rent collection. expense tracking, and tenant engagement. By also providing smart security tools, property managers can strategically enhance tenant satisfaction.
This proactive approach enhances operational efficiency, can make rental properties more attractive, and can lead to long-term growth and success in the rental market. However, to effectively address tenant demands, property managers must adhere to security and compliance standards, and offer user-friendly, convenient technologies.
In the second part of our study, we will examine how short-term rentals influence the housing market and tenant living standards. We’ll also provide insights on how to manage rent inflation whilst staying competitive and identify features that can justify an increase in rent payments according to tenants.
Survey methodology
*Capterra's 2024 Tenant Experience Survey was conducted in June 2024 among 4,800 respondents in the U.S. (n=400), Canada (n=400), India (n=400), Brazil (n=400), Mexico (n=400), the U.K. (n=400), France (n=400), Italy (n=400), Germany (n=400), Spain (n=400), Australia (n=400), and Japan (n=400). The goal of the study was to identify the pain points tenants face and explore software solutions property managers can use to address them. Respondents were screened to currently rent their primary residence. For the 400 Canadian respondents, candidates had to be Canadian residents over the age of 18.
