ONLINE APPLICATIONS STUDY

Transcription

1 ONLINE APPLICATIONS STUDY May 10, 2011

2 EXECUTIVE SUMMARY This survey was sent to a select list of industry professionals, including property managers and executives. 114 responses were received, between March 16th and 19th. Respondents were asked about online applications usage, application preferences, integration, and customization. Responses were not restricted to Property Solutions clients but represent industry preferences. Key findings: 1. The biggest advantages of online applications seem to be ease of use, convenience and speed (as reported by both property managers and residents). However, there is also room for improvement in all of those areas. Many respondents said that some online application forms like PDFs were too confusing, too long, or were too difficult for special circumstances (like coapplicants). 2. While only a third of respondents say they prefer pre-screening (and only a tenth use it), almost all who have it like it. Those who like it generally do because of speed and convenience, while those who don t want it are concerned about adding an extra and possibly unnecessary step, and about additional costs. 3. There is a strong need for property education. Responses to several of the questions indicated that some respondents were unaware of application capabilities. For example, more than half of respondents hadn t customized their online applications, but customization was the number one suggested improvement. SIGNIFICANT FINDINGS The survey examined attitudes and perceptions surrounding the online application and screening process in the multifamily industry. The most notable results are listed below. General More than three fourths of respondents use some type of online application, though attitudes about the online applications vary widely. Yes No Only 32% of started applications are completed online o The completion percentage was not affected by whether or not fees (application, security deposit) were charged during the online process. Online Applications Study p2

3 Three fourths collect an application fee (74%), while very few collect a security deposit (8%) Of those who use online applications, more than half still include a printable application, in addition to the online form. Printable PDF only Online Form (HTML) only Both When asked when they typically follow-up on a lead, the highest rates come after the guest card (83% always, 13% sometimes) and completed application (96% always, 4% sometimes). Started applications drop off significantly (73% always, 22% sometimes) and pre-screens are very low (though part of that may be due to respondents who don t perform pre-screens, and replied never.) After a Completed Application After a Guest After a Started Card Application After a Pre- Screen Never Sometimes Always Pre-Screening Only 12% use a pre-screen o Of people who use pre-screens, 83% of them view pre-screens as preferable. o Of the people who don t use pre-screens, only 34% view pre-screens as preferable. As almost everyone who uses pre-screens likes them, and a third of the people who don t use them want them, there is clearly a perceived benefit. 38% indicated that they d prefer pre-screening. o Of those who wanted pre-screening, their perceived benefits fall into three categories: (In order of frequency) Online Applications Study p3

4 o Speed: Prescreening makes the process faster for the property manager and the applicant. Convenience/customer service: Applicants have to fill out fewer forms, don t have to pay the application fee unnecessarily, etc. Less paperwork Of those who didn t want pre-screening, these are the perceived drawbacks: Another step: Many complained that this was unnecessary. PM prefers to base decision off entire application, not pre-screen. Additional costs. Promoting Online Applications, and Residents Perceptions When asked how they promoted online applications, the respondents discussed both messaging and tactics o Tactics: Of those who discussed tactics, the most common response was that they didn t do anything. Other common responses: Promoting the online applications to people who come into the office Discounting or removing application fees for people who apply online o Messaging: The most common message was about ease of use, and convenience The second most common and somewhat revealing is that online applications are promoted to people out of the area (which indicates a continuing mindset that if an applicant is in the area, an in-person application is still superior to online.) We also found a few conflicting messages. Some companies said that they encouraged online applications by creating a sense of urgency, i.e., that units were only available for a short time, or that prices would increase if the applicant didn t reserve a unit now. On the other hand, we had a few respondents use the online applications to allow applicants to go home and think about it. The applicant comes to the property, looks around, and then the property tells them they can think about it and apply later online without having to come back in. Regarding residents perceptions of online applications, about two thirds of the responses were positive. o Positive feedback: By far, the biggest positive perception was that the online applications are convenient. The second biggest was that they are fast. The third largest was that online was superior to paper: less loss, easier to read, etc. (However, these responses seemed to be more about benefit to the property manager, rather than the resident.) o Negative feedback: The most common negative complaint was that the online forms can be confusing for those who are not computer-savvy. The next most common was that the forms take too long. Some respondents stated that the online apps require more info than the paper apps, and that much of it is irrelevant. (In another question, many respondents revealed they were unaware of or hadn t done any customization to their forms.) Online Applications Study p4

5 Improvements The following improvements were recommend by respondents: o The largest group of responses asked for more customizability: changing the fields, changing the order of the fields, the look of the application, the required info, etc. o The next most common response asked for better integration of the software. o The third most common was about the complicated issues when applying with coapplicants. o Other responses included: simplification (making the application shorter, removing repetition), credit card fees, and using more user-friendly verbiage/explanations. More Customization Integration Easier for Co-Applicants More User Friendly Simplify/Shorten Credit Card Fees CONCLUSION While this survey was conducted across the industry, and not tied to a specific group of technology users or customers, it s clear that there are industry-wide perceptions, concerns and trends. Online applications definitely have a major presence in the marketplace, though their role is still in flux. Some respondents view them as a useful addition to their current system, e.g., an extra benefit for out-ofarea users or college students, while others view them as a complete solution. And, on some of the more in-depth features of online applications, like pre-screening, the industry is more strongly divided. Most property managers and residents agree that online applications are easy to use, convenient, and fast. Not all responses were positive: some complained about issues such as confusion and length. And while some of that may be addressed by additional education, (it s possible their software may already allow customization options to address perceived issues), it s also true that online applications are not yet a universal solution. If you have questions about this survey or would like more details about the results, please contact marketing@propertysolutions.com. Online Applications Study p5