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Ohio's 2023 Rental Market — The Good, the Bad, and the Ugly

December 6, 2023

A Brief Summary of Ohio's 2023 Rental Performance

As we near the end of 2023, it’s time to briefly recap Ohio’s fluctuating rental market and discuss some aspects of 2024’s forecast.


Affordability and Accessibility


The Ohio Housing Finance Authority’s annual Housing Needs Assessment gave us great insight into some aspects of Ohio’s unpredictable rental market. We saw the lowest recorded rental vacancy rates in 2021 (4.0%), and then 6.2% at the end of 2022. The rate reported as of the end of 2023Q2 varies slightly depending on the source, but we’ve seen a consensus that hovers around 5.1%. It’s no secret that finding affordable rentals is difficult, but the lack of available units may be attributed to the extreme buy-ups of properties for “seasonal, recreational, or occasional use” (think of Airbnbs and the like.)


When you pair the lack of available units with the rising rent costs and a stagnant income level, the outcome will never be positive. Keep in mind that, at the time of writing this, Ohio does not currently have any rent caps or rent-control laws. The OHFA reports that over 700,000 people in the state’s rental households are severely cost-burdened, which means that half or more of their monthly income is spent on their rent. Average monthly rents in Ohio this year (again, vary across sources):


Overall: $1,050.60

One Bedroom: $824.40

Two Bedroom: $1,063.60


Cleveland and Akron markets saw some of the highest rents in Ohio this year; however, average incomes could not match the increase in rental costs. A report from the Low Income Housing Coalition revealed that the average renter brings home about $18.47 an hour (reminder: Ohio minimum wage is still $10.10) and with one in three Ohioans renting rather than owning, common job wages are not keeping up with the rent increase. In Columbus, rents have jumped 5% higher after inflation than the national average, and Franklin County incomes are lower than the country’s average.

Multi-Family Units


RealPage’s industry research has suggested that the decrease in construction of multifamily starts is more than likely 3-4x higher than the U.S. Census Bureau’s previous estimate of 12%--this could be attributed to a plethora of issues, as revealed by RealPage:

1.      The American Institute of Architects documented “15 consecutive months of declined billings for multifamily,” signaling a steep drop in interest in residential apartment construction from multifamily-specific businesses

2.      Delays in development—a collective lack of construction financing

3.      In tandem with #2, a substantial amount of bank lenders have added more restrictions to lending standards for construction in 2023 (Nearly 3/4 of U.S. banks!)

4.      So, what happens when these roadblocks perturb equity investors’ ability to build assets? RealPage suggests that they are choosing to buy cheaper, existing assets instead of waiting around on ground-up development.

The multifamily market saw a shift from supply to demand this year and throughout 2024 and can expect vice versa in 2025-2026. More multifamily construction projects are being completed than kick-started this year, and we can expect to see deliveries top off through 2024. Starts are not projected to expedite in a considerable way, so RealPage warns that we will probably see lower supply through the next few years.


While this is a national analysis, it heavily applies to Ohio’s multifamily market. Multifamily News’ most recent report of Columbus’s market, via metrics from Yardi Matrix, showed a .2% growth in demand for multifamily units during a three month period. 

Cincinnati, on the other hand, saw itself rise to the top of the nation’s rental ratings in 2023. Multiple articles from sources such as Yardi and RealPage have reported on the Queen City’s exceptional numbers, including its rankings as the 43rd largest multifamily market (116,828 completed units; 25,827 in development) and 36th in year-over-year rent growth, and is projected to maintain its presence as a top rental market into 2024.  However, only time will tell! Be sure to check our website and social media platforms for updates and insights into this ever-changing industry.

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In property management, the success of any business is closely tied to tenant satisfaction. A positive relationship between tenants and property managers plays a pivotal role in ensuring long-term occupancy and reducing turnover, ultimately leading to higher profitability and fewer vacancies. One of the most effective ways to foster these relationships is through top-notch customer service. When property management staff are customer service-oriented, they create a welcoming, responsive, and supportive environment that significantly impacts tenants' experiences. This blog post explores why customer service is vital in property management staffing, how it contributes to tenant satisfaction, and the benefits it brings in reducing turnover. Why Customer Service Matters in Property Management Property management is unique compared to many other industries because it involves maintaining ongoing relationships with tenants, often over several years. 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Building Trust and Rapport Trust is the foundation of any successful relationship, including that between tenants and property management staff. When tenants trust their property managers to handle issues professionally and promptly, they are more likely to feel comfortable and satisfied with their living situation. Building trust comes from consistent, reliable communication and responsiveness. Staff who show empathy and understanding when handling tenant requests or complaints contribute significantly to the tenant's overall sense of well-being. 3. Effective Communication Communication is central to any relationship, and property management is no exception. Clear, respectful, and timely communication fosters a sense of trust and reliability. Property managers who take the time to explain procedures, update tenants on maintenance work, or provide information about property policies make tenants feel valued. Proactive communication—such as notifying tenants in advance of scheduled maintenance or changes in policies—demonstrates that the management is attentive to their needs. Tenants are more likely to stay when they feel informed and heard. 4. Resolving Issues and Handling Complaints In any rental situation, problems are inevitable—whether it's a maintenance issue, a billing question, or a noise complaint. What sets a great property management team apart is how they handle these problems. Tenants appreciate prompt, effective resolutions to their issues, and the speed and professionalism with which complaints are handled can either strengthen or weaken the tenant-manager relationship. Customer service-oriented staff understand the importance of listening to tenants' concerns and taking swift action, preventing small issues from escalating into larger disputes. 5. Creating a Sense of Community Properties are not just buildings; they are homes where people build their lives. Property management teams that focus on customer service contribute to creating a sense of community among tenants. Organizing events, communicating about community activities, and encouraging a respectful, harmonious living environment make tenants feel more connected. This connection often leads to higher satisfaction and a desire to stay within the community longer. How Customer Service-Oriented Property Managers Reduce Turnover One of the biggest challenges in property management is tenant turnover. Each time a tenant leaves, property managers must invest time and resources into preparing the unit for the next occupant, including marketing, cleaning, repairs, and screening potential tenants. High turnover can quickly drain resources, while tenant retention can lead to steady cash flow and lower operating costs. Here’s how customer service-oriented property management staff can significantly reduce turnover: 1. Enhancing Tenant Satisfaction Happy tenants are more likely to stay in their units. When property management teams provide excellent customer service, tenants feel appreciated and valued. This leads to higher levels of satisfaction and a lower likelihood of tenants leaving at the end of their lease. Studies show that tenants are more willing to overlook minor inconveniences or higher rental costs if they feel they are being treated well. In contrast, even a perfect property in terms of physical maintenance won’t hold onto tenants if the management staff is rude, unresponsive, or dismissive. 2. Addressing Problems Before They Lead to Turnover Often, tenants leave properties because their concerns are not addressed in a timely or satisfactory manner. It may be a chronic issue with maintenance, unresolved noise complaints, or general dissatisfaction with management's responsiveness. Customer service-oriented staff actively listen to tenant concerns and work to address them before they escalate. By staying proactive, they can resolve potential issues before they cause frustration and lead to a decision to move. 3. Fostering Long-Term Relationships Personal connections matter in any service industry, and property management is no different. When property managers know their tenants' names, remember important details about their living situation, and show genuine concern for their needs, tenants feel more attached to the property. This sense of connection fosters loyalty, making tenants more likely to renew their leases. Staff who go the extra mile to ensure tenants feel comfortable and appreciated make a lasting impact. 4. Creating a Stable Living Environment High tenant turnover disrupts the stability of a community. When tenants constantly come and go, it can create a transient feel, making it difficult for long-term residents to feel settled. Customer service-focused property managers help to maintain stability by cultivating a community atmosphere where tenants feel at home. This sense of continuity encourages tenants to stay longer, as they feel secure in their surroundings. 5. Positive Word-of-Mouth and Referrals Satisfied tenants are often the best advocates for a property. When tenants have positive experiences with management staff, they are more likely to refer friends or colleagues to the property. Word-of-mouth recommendations reduce marketing costs and attract quality tenants. Additionally, positive online reviews can enhance a property’s reputation, drawing in prospective renters who value excellent customer service. This referral cycle leads to lower vacancy rates and fewer resources spent on acquiring new tenants. Best Practices for Customer Service in Property Management Staffing To ensure property management teams provide excellent customer service, it is essential to implement best practices that promote tenant satisfaction and retention: 1. Training and Development Property management staff should receive regular training on customer service best practices. This includes communication skills, conflict resolution, empathy training, and problem-solving techniques. Investing in staff development ensures that they are well-equipped to handle the various challenges that arise in property management. 2. Creating a Customer-Centric Culture Management should foster a culture that prioritizes customer service at every level. From the front desk staff to maintenance teams, everyone should be aware of the impact they have on tenant satisfaction. Encouraging a customer-centric mindset ensures that staff consistently strive to exceed tenant expectations. 3. Implementing Feedback Systems Actively seeking feedback from tenants allows property management to understand what is working and what needs improvement. Implementing regular tenant surveys or providing easy ways for tenants to share their thoughts helps management teams stay proactive. Addressing feedback in a timely manner shows tenants that their opinions are valued and taken seriously. 4. Setting Clear Expectations Tenants should know what to expect from their property management team. Clear communication regarding maintenance schedules, office hours, and response times sets the standard for interactions. When tenants are aware of what to expect, they are less likely to feel frustrated by delays or misunderstandings. 5. Utilizing Technology for Better Service Technology can enhance customer service in property management. Online portals for rent payments, maintenance requests, and communication provide tenants with convenient and efficient ways to interact with management. 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