Property managers remain optimistic about multifamily trends despite average retention falling slightly short of their expectations for 2025. According to Zego’s 2025 resident experience management report, property managers aimed for a 63% retention rate, but the average retention stood at 58% by early 2025.
However, nearly three-quarters of property managers expect retention to increase next year, while only 2% anticipate a decline. Zego gleaned its findings from two separate surveys, one of multifamily renters and one of multifamily property managers.
“What’s most striking about retention goals is the surge of companies that are setting the bar drastically higher for themselves,” said the report. The number of companies aiming to retain 70% or more of their residents has more than tripled since 2021, indicating a greater emphasis on achieving higher retention goals.
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“Companies now realize that every percentage increase in retention has a direct, measurable impact on NOI and are heavily focused on retaining existing residents,” Zego said.
Zego’s renter survey found that 23% of tenants are undecided about whether they will move. If property managers can convert more than half of those who are undecided, they have a good chance of exceeding their elevated retention targets.
Renewal rates are highest among tenants who have lived in their apartment for six or more years, with 64% in this category indicating they plan to renew in the next 12 months compared with 52% of those who have lived in their residency for less than a year, according to the survey.
The survey revealed a disconnect between the reasons property managers believe renters are choosing to move and the actual reasons renters say they are moving. Renters most often cited expensive rent as the reason they are not renewing, while property managers think renters are leaving primarily to accommodate life changes.
“While property managers do seem to understand that price sensitivity is a main concern, they also underestimate how important maintenance, safety concerns, and property upkeep are to renters,” said the report. “These things rank at the top of the list for renters, and the very bottom for property managers.”
Property managers ranked understanding and anticipating the needs of residents as the most challenging aspect of resident experience management, followed by maintaining the physical property's visual appeal and modernization, managing disputes between residents, and outdated or insufficient property technology.
Meanwhile, resident expectations are increasing, with renters expecting better customer service from on-site staff, digital self-service options, in-unit amenities, and pet friendliness. A disconnect remains between what property managers think tenants want and what they want, the report found. For example, property managers thought a technology-enabled lifestyle was the top priority for tenants, but renters ranked maintenance and repairs as their highest priority.
“While technology and high-end amenities can enhance convenience, they are not essential to daily living,” said Zego. “Renters see things like smart home gadgets, fancy gyms, or rooftop lounges as added bonuses — but they won’t make up for poor maintenance, unclean spaces, or safety concerns. If a property lacks strong fundamentals, residents are more likely to move out, regardless of how many luxury features are available.”
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Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
