# Using Tech To Address Tenant Concerns About Short-Term Rent | Capterra > Learn how property managers can address challenges from short-term rentals and rising rents, ensuring better tenant satisfaction and neighborhood dynamics. Source: https://www.capterra.com/resources/property-management-tools-combat-rental-prices-and-short-term-rentals --- Real Estate # Short-Term Rentals, Long-Term Problems—Using Tech to Address Tenant Concerns Written by: Eduardo Garcia Eduardo GarciaAuthor Content Analyst Experience I’m a content analyst with over a decade of experience in content strategy and corporate communication across the technology, fina... [See bio & all articles](https://www.capterra.com/resources/author/eduardo-garcia/) and edited by: Kathryn Todd Kathryn ToddEditor Kathryn Todd is a senior editor at Capterra. She specializes in editing data-driven research reports that cover the latest technology trends. She has almost ... [See bio & all articles](https://www.capterra.com/resources/author/kathryn-todd/) Published September 9, 2024 7 min read Table of Contents - [Rising prices from short-term rentals concern tenants](#higher-rental-prices-caused-by-short-term-rentals-are-a-growing-concern-for-over-half-of-tenants) - [ent control and payment options can address inflation](#rent-control-and-tenant-friendly-payment-options-are-the-most-effective-measures-to-address-rent-inflation-for-tenants) - [Smart tech and security can justify higher rent](#home-security-and-smart-technology-are-desirable-property-features-that-may-justify-higher-rental-rates) - [Tenant-centric communities can aid rental success](#tenant-centric-communities-hold-the-key-to-long-term-rental-success) ## Short-term rentals can raise income for landlords but disrupt neighborhoods—property management software can help address this issue. In recent years, the proliferation of short-term rental platforms has reshaped the rental housing sector, presenting both opportunities and challenges for property managers and tenants alike. While these platforms offer flexibility and additional income streams for property owners, they have also sparked debates over their impact on long-term availability, affordability, and neighborhood dynamics. Given that over three-quarters of tenants agree that rising rent in their area has significantly impacted their standard of living, property managers have an opportunity to stand out from the crowd by offering more competitive pricing and desirable tech, which in turn can lead to reduced tenant turnover and more satisfied and loyal tenants. To explore these issues, Capterra conducted a global survey in twelve countries, with a total sample of 4,800 tenants to uncover their experiences and perceptions.[\*](#methodology) Of this sample, 400 respondents reside in the U.S. The results showcase the complexity of factors influencing the current short-term rental market, from rental escalations to neighborhood disruptions and tenant satisfaction concerns. Moreover, they also show the need for property managers to upgrade their properties and leverage [property management tools](https://www.capterra.com/rental-property-management-software/) to elevate the renter's experience when external factors are driving prices higher. Key insights - **Short-term rentals concern half of tenants:** Higher rental prices from short-term rentals are a growing concern for 51% of global tenants and nearly two-thirds of U.S. tenants. - **Short-term rentals can impact neighborhood dynamics**: 30% of respondents aware of short-term rentals note higher noise levels. 29% notice parking issues while 24% cite safety concerns.  - **Rent control and tenant-friendly payment options can mitigate inflation damage**: Tenants feel that rent control measures (40%) and discounts for on-time payments (30%) are the most effective measures to address inflation. - **Home security and smart tech can justify higher prices:** 31% of tenants say that home security systems with remote monitoring would justify paying higher rent. ## Higher rental prices caused by short-term rentals are a growing concern for over half of tenants There have been reports of short-term rentals driving up rental prices in many areas around the country, [\[1\]](#sources) but is this the reality for the surveyed tenants? Over half of all respondents (51%), and 64% of U.S. renters, cite that higher rental prices are a top challenge derived from short-term rentals. Additionally, 41% of respondents who are aware of the effects of these types of rentals state that short-term rentals have significantly increased rental prices in their area. This concern about higher prices highlights the need for property managers to adopt pricing policies that balance profitability with tenant affordability. Similarly, property managers should conduct market analyses to track trends in rental prices that may justify increased rental prices. ### 46% of tenants in the U.S. are dissatisfied with the amount they pay for their current rental property Many tenants globally rent rather than buy properties because they cannot afford to buy their own property (55%) or because they are currently saving to buy one (28%). These numbers are more elevated in the U.S., where 70% of tenants are renting because they cannot afford to buy their own real estate. Pricing issues are a challenge for tenants. Over a third (34%) of respondents globally cite high rental costs as a challenge in their current rental property. Additionally, 36% of globally surveyed tenants express dissatisfaction with the amount of rent they are paying. This number is even higher in the U.S., where 46% of tenants are dissatisfied with how much they pay for rent.   Moreover, rent increases have significantly affected tenants:  76% strongly or somewhat agree that rising rents in their area have significantly impacted their standard of living. Given the impact of rising rents caused by short-term rentals, and tenant dissatisfaction, maintaining strong, long-term relationships with tenants is essential. Implementing communication policies and transparent pricing can help address concerns and foster trust while improving tenant retention and lowering turnover rates. Property managers have reasons to care about tenant satisfaction and affordability. Satisfied tenants lead to positive reviews, improving a property’s reputation and reducing complaints. ### Other challenges caused by short-term rentals: landlord preferences, competition, and limited options Properties that could be available for long-term rentals may often be converted to short-term rentals due to factors like higher potential income and flexibility in managing occupancy rates. A possible reduction in the number of units available for long-term tenants may limit options for tenants looking for a long-term lease. Over a quarter (26%) of tenants identify limited rental options as a key challenge stemming from the prevalence of short-term rentals. The number is even higher in the U.S. (43%).  Additionally, short-term rentals can attract a different demographic, like tourists or business travelers, compared to long-term rentals, which attract residents. This can lead to increased competition among potential tenants for the remaining long-term rental properties. ### Short-term rentals can impact neighborhood dynamics, such as affecting noise, congestion, and safety concerns Financial concerns and availability are key challenges to tenants, but the increase in short-term rentals can also affect neighborhoods. While 24% of survey respondents who are aware of short-term rentals and their impacts do not cite any notable effects on neighborhood dynamics, 30% note higher noise levels and 29% notice more parking congestion. Additionally, 24% cite safety issues, and 23% say that they have noticed changes in neighborhood character or atmosphere. Property managers should consider implementing community engagement strategies to foster a sense of community and address neighborhood concerns promptly. Ultimately, tenants who are well-integrated and satisfied within their community are likely to generate fewer complaints and have longer tendencies. ### 6 ways property managers can improve and strengthen neighborhood communities 1\. Enhance security measures Install and maintain security systems, such as [surveillance cameras](https://www.capterra.com/video-surveillance-software/) and access control. In combination with emergency preparedness plans for critical situations and neighborhood watch programs, residents can be encouraged to look out for each other’s safety. 2\. Address congestion issues Push to implement traffic calming measures like speed bumps and improved signage to manage traffic flow. For [parking solutions](https://www.capterra.com/parking-management-software/), developing designated resident spots and visitor parking areas should help reduce congestion and prevent overcrowding. 3\. Minimize noise disturbances 31% of tenants experience noise disturbances in their current rental property. Establish clear noise guidelines and enforce quiet hours to reduce disturbances. Invest in soundproofing measures for common areas and individual units to reduce noise transmission. 4\. Implement waste management Contribute to environmental sustainability by implementing energy-efficient practices. Regular trash collection schedules and adequate waste disposal and recycling facilities are important. 5\. Nurture a neighborhood atmosphere Engage with residents to maintain the neighborhood's unique character through beautification projects or historical preservation initiatives. [Organizing community events](https://www.capterra.com/event-management-software/) and maintaining open communication channels to encourage resident involvement in decisions affecting neighborhood aesthetics can ensure collective ownership and satisfaction. 6\. Build a strong community [Collaborate with local stakeholders,](https://www.capterra.com/community-software/) including forming partnerships with businesses, organizing community service projects, and working with neighborhood associations. Landlords should also promote [diversity and inclusivity](https://www.capterra.com/dei-software/) while ensuring accessibility. ## Rent control and tenant-friendly payment options are the most effective measures to address rent inflation for tenants Whether it is spurred by short-term rentals or not, rent inflation remains a critical concern for tenants. Over half of respondents would find it reasonable for rents to increase between 1% and 10% over the next year. However, 37% cite that rents should not be increased at all.  There are several measures tenants feel can curb rent inflation: Two out of five global tenants and 62% of U.S. residents find rent control measures to limit rent increases an effective measure. This sentiment reflects growing advocacy for legislative interventions aimed at stabilizing rental prices amidst escalating housing costs.  However, beyond legislative measures, property managers can also address customer demands for actions against rent inflation by considering the following options: - Longer-term leases may provide more stability and predictability in rental agreements, they can also attract tenants seeking extended tenures and minimize turnover costs.  - Tenant-friendly payment options, such as discounts for on-time payments and automated or flexible payment structures can incentivize timely rent remittance and enhance financial management for both tenants and landlords.  - Property managers can stay informed about available subsidy programs and assist tenants in navigating application processes. This can address tenant endorsement for government-backed financial aid or rental subsidies while fostering a supportive environment that enhances tenant retention. - Landlords should maintain an open dialogue with tenants regarding rental policies and justifications for rental adjustments. By providing advance notice of impending rent changes, landlords can improve transparency in property management practices.  - By investing in energy-efficient upgrades such as LED lighting or smart thermostats, property owners can attract tenants willing to pay higher rents for sustainable living options and also reduce operational costs over time. ## Home security and smart technology are desirable property features that may justify higher rental rates Understanding tenant preferences for property features is crucial for property managers aiming to attract and retain tenants in competitive rental markets. Investing in desirable amenities can justify higher rental rates and attract tenants willing to pay a higher rent. Even though three in ten tenants do not consider that added features can justify paying a higher rent, features like home security systems, and smart systems and appliances are particularly valued by some renters. When it comes to advanced security, property managers should respond to these demands by installing security systems and highlighting their presence during property tours and marketing materials, emphasizing tenant safety as a key selling point.  Similarly, the expressed interest in smart home automation systems and smart appliances should prompt property managers to incorporate smart devices like automated lighting and locks and upgrade their rental units with energy-efficient appliances that can reduce utility costs. ## Tenant-centric communities hold the key to long-term rental success For landlords, taking tenant preferences into account can be beneficial to them as it will improve relationships with renters and, in turn, enhance their reputation and bolster business in the long term. With all the competition in the current housing market, this can give landlords an advantage against the bigger players in the rental sector and help them foster a positive reputation. Given the challenges posed by short-term rentals and rent inflation, property managers seeking to rent units to long-term tenants should combine affordability, community engagement, and technological upgrades. Utilizing [property management tools](https://www.capterra.com/rental-property-management-software/) can streamline these efforts, helping to mitigate the adverse impacts of short-term rentals and also cultivate a rental community that meets the diverse needs of modern tenants.  Property managers need to align with tenant preferences and address concerns related to rent inflation through smart features that can save money and enhance security. This way, they can improve tenant satisfaction, reduce turnover rates, and maintain a competitive edge in the rental market. ## Recommended reading [**7 Top-Rated Property Management Software**](https://www.capterra.com/resources/top-rated-property-management-software/) This article lists 7 top-rated property management software tools categorized into portals for landlords, tenants, and vendors, portals for landlords and property managers, and tools for property managers only. [**5 Key Property Management Software Features and Top Products That Offer Them**](https://www.capterra.com/resources/key-property-management-software-features/) This article lists five features based on the ratings given by verified software users. We also include the highest-rated property management software solutions for each feature. * * * **Survey methodology** \*Capterra's 2024 Tenant Experience Survey was conducted in June 2024 among 4,800 respondents in the U.S. (n=400), Canada (n=400), India (n=400), Brazil (n=400), Mexico (n=400), the U.K. (n=400), France (n=400), Italy (n=400), Germany (n=400), Spain (n=400), Australia (n=400), and Japan (n=400). The goal of the study was to identify the pain points tenants face and explore software solutions property managers can use to address them. Respondents were screened to currently rent their primary residence. For the 400 U.S. respondents, candidates had to be U.S. residents over the age of 18. Sources 1. [Opinion: Airbnb and short-term rentals drive up L.A. housing prices. Here’s how we can push back,](https://www.latimes.com/opinion/story/2023-09-18/airbnb-rent-los-angeles-housing-short-term-rentals) LA Times. * * * Looking for Property Management software?Check out Capterra's list of the [best Property Management software](https://www.capterra.com/rental-property-management-software/) solutions. ### Was this article helpful? * * * ## About the Authors [### Eduardo Garcia](https://www.capterra.com/resources/author/eduardo-garcia/) Eduardo Garcia is a content analyst at Capterra, covering research on new technologies and specializing in retail and healthcare. His research has appeared in The Times, Wired UK, Tech Radar, Customer Experience Magazine, the NHS and Computer Weekly. [### Kathryn Todd](https://www.capterra.com/resources/author/kathryn-todd/) Kathryn Todd is a senior editor at Capterra. She specializes in editing data-driven research reports that cover the latest technology trends. She has almost a decade of experience writing and editing content to help small businesses stay ahead of trends and find the best tech solutions for their needs. Kathryn holds a bachelor's degree in English Language and Linguistics from Sheffield Hallam University in the U.K. When not editing content herself, she enjoys reading content other people have... ### RELATED READING - [Choosing Project Management Software? 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