Across the nation, usage rates differ based on city and demographics. Technology savvy cities like Washington DC, Denver, Boston, and cities all along the west coast have the highest Internet usage rates. Portland tops the list at 70 percent, but even cities like Detroit, St. Louis, and Orlando where technology companies are less prevalent are in the top 20 with penetration rates above 55 percent. Chances are good the Internet has made an impact in your area.
Depending on your location and property grade, you may have a guess as to the number of individuals with Internet access. Surprisingly, the gap between region, income, and age has narrowed incredibly fast in the last two years - at a rate higher than anyone predicted. Regions slower to adapt are catching up to the early adapters. Those with lower income are rapidly getting online due to declining computer costs, job requirements, and for their family needs. Seniors above the age of 55 are becoming fond of the Internet to keep in touch with family and friends. Growth in this demographic is growing at a rate of 33 percent a year. With more free time, seniors have shown astounding interest in taking advantage of the Internet.
People across the economic and age spectrums are using the Internet today, according to a study by Pew's Internet & American Life Project. They found that the fastest growing group of Internet users by economic demographics is those with incomes of $30,000 or less. At the end of 2000, 38 percent of this group was online, compared with just 28 percent in June of that year. A 10 percent gain was seen in those six months. That rate of growth was forecasted to continue until usage rates equaled other demographic groups. At the time of the study 104 million Americans, or 56 percent of American adults, were using the Web. In July of this year, that number is estimated to be around 143 million. With that many people online, chances are your residents are online paying bills, communicating, and searching for apartments.
Interestingly, Internet usage among apartment residents is seen trending ahead of the population as a whole. A CEL Associates study in April of 2001 indicates that 77 percent of all US apartment residents are connected to the Internet at home or at work, and that the majority of US apartment residents have a desktop and/or a laptop computer in their homes. That is significantly higher than the entire national average. The study also indicated that these residents spend one to four hours each day on their computers. A year ago, 23 percent had high-speed Internet access, and 45 percent indicated they planned on moving to a high-speed connection within the year. Among community amenities offered, CEL Associates ranks Internet usage one of the most used amenities by residents.
What are people doing online?
Another study on general Internet usage in the United States by the Pew Internet & American Life Project has shown that the Internet has gone from novelty to utility for many Americans. Bill payment, travel planning, email, and other tasks are the most common activities. The focus has moved away from 'surfing' and recreational activities, and users are focused on 'life activities' and conveniences. Despite the focus on the dot-com downfall, shopping and e-commerce continues to grow. Morgan Stanley reported that each quarter "e-commerce appears to becoming increasingly mainstream and that over 90 million people are estimated to have logged onto retail sites in July 2002."
Another popular online function is customer service. People are logging on to access product manuals, phone and cable bills, order tracking, and other conveniences. For many, it is more efficient to go online rather than pick up the phone or search for a product manual to learn how to change the time on the VCR. Consumers respond positively to companies offering instant online resources to service their needs. For apartment managers, this means residents are interested in accessing the Web for functions at their apartment community. Residents can benefit from the conveniences of online rent and utility payments, service requests, policies and enhanced communication. Many people work long hours or travel frequently and are not home when the leasing office is open. Others simply want to save a trip to the office. Today, statistics repeatedly show that the single largest controllable factor in lease renewal is the perceived service that a resident received from the community staff and whether that service met their expectations.
What does this mean for me?
Today, your residents are coming online when it is time to look for an apartment. It only strengthens your relationships to offer additional services throughout the lease cycle - from move-in, ongoing resident communication and as part of lease renewal. Online services should not replace a personal relationship, but rather enhance the service residents receive in person. These services are becoming increasingly critical to meet the high expectations of service that lead to a long-term resident relationship. While implementing these services may seem like a daunting task, you would be surprised at how easy it can be. Many of the technologies and concepts have already been refined in other markets and deployed successfully for property management. Online resident services are ready to be rolled out on your properties. The best news is that it can take little work from you or your internal staff.
Technology has become an integral part of every successful marketing campaign. The Internet is now a valuable tool for not only for apartment hunting, but also for apartment living. Those companies who use technology to enhance their customer service will emerge as the leaders in tomorrow's multi-family marketplace.
