With tenants fleeing high rents in Australia’s state capitals, landlords in both cities and outer regions can outshine competitors by adopting property management tech solutions that improve tenant experiences. Capterra finds out what are the top renter-requested tools.
In this article
Rents in Australia are now 9% higher than this time last year, with annual rent growth accelerating in 2024. These surging prices have many causes, including underinvestment in social and affordable housing. Due to rising prices, demand for cheaper rents are most pronounced in regional Australia and outer suburban areas of cities. [1] With this, many landlords face intensified competition for value for money rentals.
To compete effectively, landlords must prioritise tenant satisfaction through modern customer experiences and robust technological solutions. According to Capterra’s 2024 Tenant Experience survey, over two-thirds of Australian tenants agree that the use of advanced technology like smart appliances and keyless entry can influence whether they sign a rental agreement.
However, acquiring new technologies isn’t enough. Australian landlords need to understand what factors are the most important for renters in order to deliver an optimal tenant experience. With this in mind, property managers need to ensure they have the right property management tools to cater to these demands, help them carry out administrative tasks, and derive value from their technology investments.
Capterra conducted a global survey in twelve countries, with a total sample of 4,800 tenants. Of this sample, there were 400 respondents from Australia.* The survey provides insights into current digital trends and preferences among rental property stakeholders. Moreover, this article explores actionable strategies property managers can take for leveraging these insights to enhance operational efficiency, boost tenant satisfaction, and secure renter loyalty.
- Technology and digital tools for tenants are not yet widespread: 58% of tenants in Australia have digital tools included in their current rental properties.
- Well-implemented digital tools can enhance tenant experience: 83% of tenants using digital tools with their rental property say they are satisfied or extremely satisfied with them.
- Enhanced security is needed in property tech: 34% of tenants say privacy and data security concerns are a top challenge when using digital tools.
- Traditional communication methods remain prominent: Only 5% of tenants prefer to use dedicated online portals to communicate with property managers instead of email or phone messages.
42% of property managers in Australia lack convenient tech solutions for renters
With several digital tools at their disposal, both tenants and property managers in Australia can leverage technology to bring better convenience and improve efficiency and internal operations. Digitisation in property management is more accessible than ever, and a substantial portion of tenants report having access to digital tools in their current rental property.
Online payment portals and online maintenance request portals are the most adopted digital tools in rental properties among our surveyed Australian tenants. However, about 4 in 10 say they do not have any of the mentioned digital tools in their rental property. This showcases that a significant number of property managers have yet to deploy digital features to facilitate tasks or improve the tenant experience in Australia.
Meanwhile, the most desired technologies by Australian tenants with no digital property management tools are smart energy management (29%), remote security apps (27%), and smart locks (25%).
Many of these technologies are more than convenient niceties. These tools can streamline administrative tasks and enhance security and convenience for both tenants and property managers. Given the influence advanced technology can have on tenant decision-making, landlords should leverage these tools to stand out from the competition.
Property management tech adoption: How does Australia compare to the rest of the world?
Aussie tenants have a higher adoption rate of these tools than the average of countries that participated in the survey. A third of Aussie tenants (33%) have access to online payment portals with their current rental property, compared to the average of 25% of global respondents. Thirty per cent of Australian respondents can access online maintenance request portals compared to the global average of 18%. Finally, 28% can access online document portals, ahead of the global average of 20%.
This interest in property tech is also reflected by the group of tenants who are not leveraging digital tools. Out of the Australian respondents who currently do not have any of these technologies in their rental property, 51% of them express interest in having at least one of them.
The use of technology in rental management, along with tenants' desire for these offerings, underscores the opportunity for property managers to meet tenant expectations by expanding their digital offerings. Here is how each tool or feature can help:
Online payment portals: Simplify rent collection with electronic payments, improving cash flow and tenant satisfaction by offering convenient, remote payment options.
Online maintenance request portals: Enable tenants to submit detailed maintenance requests online, leading to faster resolutions and higher tenant satisfaction.
Online document portals: Digitise leases and policies for easy access, enhancing transparency, reducing disputes, and improving communication between tenants and property managers.
Enhanced security by allowing smart locks: Tenants want better security in the properties they are staying in. Smart locks enhance security by allowing keyless entry and remote access control, improving convenience and safety for tenants.
Remote security app: By providing monitoring and control over security systems, remote security apps can enhance personal security while meeting tenant demand for technological integration.
Smart energy management: Optimise energy usage to potentially reduce utility costs and promote sustainability practices for both tenants and property managers.
Property tech provides convenience but renters also have security concerns
Satisfaction levels are high when it comes to digital tools in property management. A notable 83% of Australian tenants who have digital tools available with 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 top benefits reported by these tenants include convenience, greater flexibility, efficiency, security, and improved communications.
Surprisingly, automation did not figure prominently as a key perk of digital tools among Australian respondents. Only 20% highlighted this as a top benefit, just below the global average of 25%, which might suggest that tenants in Australia prefer personal engagement rather than relying on digital tools to automate some processes without human interaction.
Challenges of digital tools in property management
Despite the benefits, some tenants using these technologies and digital tools continue to face challenges. The top challenges include privacy concerns (34%), technical issues (33%), and limited customer support (28%).
Addressing these challenges is crucial for maximising the effectiveness of digital tools and ensuring tenant trust and satisfaction.
Property managers should prioritise data security measures to mitigate tenant concerns and invest in robust customer support to improve overall satisfaction. To address these issues, they should consider the following:
- Use software that is compliant with privacy laws: Property managers should ensure that the software they use has encryption methods to protect sensitive data, such as financial transactions and personal information. This means using software that complies with data privacy laws and implementing strict user access controls to limit who can view or modify sensitive information.
- Perform regular updates and backup procedures: Even though technical glitches are listed as a top challenge when using software in rental management, 75% of Australian tenants using digital tools say they seldom or never experience technical issues. However, even a rare glitch can pose a challenge. When using any rental property technology, property managers should ensure that the software is regularly updated to the latest version to fix bugs and improve stability. Implementing robust backup procedures can also minimise data loss in case of technical failures.
- Seek software with comprehensive customer support: When using software for property management, it is important to identify and prioritise support channels, such as email, phone, and live chat, provided by the vendor. Additionally, tenants should be provided with comprehensive user guides and FAQs to help them troubleshoot common issues independently.
Email is still the preferred communication method for Aussie tenants
Understanding how tenants prefer to communicate can be important 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. Instead, over half (51%) of Aussie tenants primarily communicate via email.
Only 5% use dedicated online portals to communicate with their property managers. Given that most property managers probably have phones and email accounts, tenants may consider it unlikely that they will be more responsive via a portal than on their personal devices and email accounts. With average response times for messages and calls ranging from within a few hours (32%), or a day (26%), it appears that this is a habit that is likely to persist.
Still, efficient communication channels and prompt responses contribute significantly 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.
Catering to tenant requests, 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 can directly impact property managers' online reputation. A majority (79%) of surveyed tenants would write 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.
Australian landlords must consider tenant tech preferences
As rental property management continues to evolve, embracing digital transformation is imperative for staying competitive and meeting tenant expectations. The use of advanced technology like smart appliances and keyless entry can also influence whether a tenant signs a rental agreement.
By deploying digital tools like property management software to collect rental payments, track expenses, and engage tenants with online communities, and providing smart security tools, property managers can strategically enhance tenant satisfaction.
This proactive approach improves operational efficiency, positions rental properties as desirable choices, and can ultimately drive sustainable growth and success in the rental property sector. However, in order to effectively meet tenant demands, property managers must ensure that they meet security and compliance standards, and deliver convenient technologies that are easy and fast to use.
In the second part of our study, we will explore the impact of short-term rentals on the housing market and how they affect living standards for tenants. We’ll also provide effective measures to address rent inflation whilst remaining competitive and the 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 Australian respondents, candidates had to be Australian residents over the age of 18.
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