3 Charts That Show How the Rental Process Is Going Digital

The migration of the rental search process to the internet was accelerated in some ways by the pandemic. In other ways, it was just inevitable. 

Last year, for example, 23% of renters said they did not take an in-person tour — a trend that has grown since 2019. Today’s renters expect to do more online, as actions like signing a lease and paying rent become increasingly digitized. 

Improving the digital experience for renters and tenants could also benefit your bottom line by increasing the return on ad spend and decreasing tenant turnover, which will mean even more in a softer rental market.

With that in mind, here are three key takeaways that signal what renters want and how you can help them.

1. More renters are searching on mobile devices

Online search is on a general upward trend for renters across all mobile device types. Mobile sites and apps have seen a steady increase since 2019.

Interestingly, when renters start their search, they’re using fewer sites and apps. Only 51% reported using five or more resources in 2022, down from 62% in 2020. This may be due to consolidation in the rental listings market or growing trust in certain brands.

In terms of overall search, mobile overtook laptop and desktop searches around seven years ago. Every year, a larger percentage of renters report searching on their smartphones. Just like with online applications, lease signing, or rent payment options, prospective tenants — especially younger searchers — expect cohesive digital experiences. In 2023, it may be worth ensuring your site and other digital assets play well on smaller screens.

2. Renters are submitting more online applications

Spurred by the pandemic and wider adoption, more renters are submitting more online applications.

Since 2018, the percentage of renters who reported submitting zero online applications has dropped, and the percentage who reported submitting one or more has grown. Overall, online options may reduce friction for prospective tenants, especially as younger generations show increasing preference for digital tools. The typical application fee was between $40 and $59.

3. Electronic lease signing is on the rise

Signing a physical lease can be a barrier for some tenants. The portion of recent renters who reported signing their lease online has jumped 13 points since 2019.

More than a third of recent renters reported signing their lease online in 2022. That’s an increase of 15 percentage points since 2018. More than two-thirds say they would ideally pay their rent online — up 11 percentage points from 2018. 

Offering digital conveniences can help ease the friction of renting, and the added convenience may help tenants decide to stay in place for longer.

Want to find out more data-driven insights about renters? Read our latest trends report.