Resident Retention Slips Below Target As Managers Eye Recovery

Resident retention fell short in 2025, but most property managers expect improvement amid shifting renter expectations.

July 22, 2025

Property managers targeted a 63% retention rate for 2025 but averaged just 58% by early in the year.
Nearly 75% of property managers expect retention to rise in 2026, despite current shortfalls.
A disconnect exists between what renters value and what managers prioritize — with renters citing maintenance, safety, and rent prices as top concerns.
More companies are setting higher retention targets, reflecting the growing impact of resident turnover on net operating income (NOI).

Key Takeaways

A Missed Target, But Rising Optimism

Despite falling short of their 2025 retention goals, multifamily property managers remain optimistic, reports GlobeSt. According to Zego’s 2025 Resident Experience Management Report, the average retention rate was 58%, below the industry’s 63% target. Still, 74% of surveyed managers expect retention to improve next year, with just 2% predicting a decline.

Pushing For Higher Standards

One notable shift: more companies are aiming higher. The number of property firms targeting retention rates of 70% or more has more than tripled since 2021 — a sign of growing focus on retention as a driver of NOI. Converting undecided residents is key; Zego’s renter survey found that 23% of tenants haven’t yet decided whether to renew.

Who’s More Likely To Renew

Tenure plays a major role in lease renewal decisions. Residents who’ve lived in their units for six years or more are the most loyal, with 64% planning to renew. In contrast, only 52% of renters with less than one year of tenancy plan to stay another year.

Disconnect On What Matters

The report also highlights a gap between what renters say matters most and what property managers think drives turnover. While renters cite high rent, poor maintenance, and safety issues as top reasons for moving out, property managers often attribute turnover to general life changes. Maintenance and property upkeep ranked near the bottom of concerns for managers — but at the top for renters.

Understanding The Resident Experience

Zego identified understanding resident needs as the biggest challenge facing property managers today, followed by maintaining the property’s appeal and modernity, managing resident disputes, and dealing with outdated tech.

While managers believed that residents value tech-enabled features most, renters ranked maintenance and repairs as their highest priority. “If a property lacks strong fundamentals,” Zego noted, “residents are more likely to move out, regardless of how many luxury features are available.”

Looking Ahead

To meet rising resident expectations, property managers will need to bridge the gap between perception and reality. That means prioritizing core services — clean, safe, and well-maintained living spaces — over high-end tech amenities if they want to hit their increasingly ambitious retention goals.