REIMAGINING REAL ESTATE SERVICES: Transforming Relationship Between Next Gen Tenants and Landlords
#Apartment Service #Service Design #Service Implementation #Co-creation #Journey & Experience Mapping
Team Size: 4 Service DesignersDuration: Jan-Apr, 2023
Role: PM, Methodology Design, Research, Inforgraphic Design
The Challenge
In the evolving US rental market, Millennials and Gen Z are the majority, with many planning to rent. In Savannah, Georgia, they make up 31% of apartment rentals. Yet, the increasing trend of 'fast furniture' results in substantial annual waste. The demand for sustainable solutions is clear and pressing.
The Methodology
To address these challenges, we adopted a dual-centric approach, focusing on both tenants and staff. Utilizing participatory co-creation driven by insights and data, we explored and developed a service implementation framework to guide staff and service prototypes oriented towards tenants.
The Outcome
The primary output of this project is the innovative "Evolution Map", a strategic framework that amalgamates diverse concepts to drive the transformative journey of apartment services. Additionally, the project includes a tenant-oriented incentivized Tenant Aid Network and smart Segmentation of public spaces to meet the needs of target users.
The Impact
The strategies developed could potentially influence the lives of 14,648 individuals in Savannah and up to 12.05 million people nationwide. The project's customer-oriented solutions, such as the Tenant Aid Network app and smart segmentation of public spaces, have already garnered positive feedback in online interviews and surveys.
Preview
In this project, we've employed a methodology that synergizes insight-driven strategies and quantitative research. The methodology is broken down into five crucial stages:1) Monitor & Frame; 2) Explore & Identify; 3) Ideate & Visualize; 4) Prototype & Envision; 5) Experiment, Refine & Optimize. Remarkably, our process iteratively revisits the first two stages. This iterative cycle enables us to refine our insights continuously and effectively steer our research in the right direction, ensuring our exploration is anchored in relevance and driven by veracity.
Preview
In the dynamic landscape of the US rental market, Millennials and Generation Z are the driving forces. Nearly 3/4 of Millennials are renters, and an unprecedented 12.3% plan to rent indefinitely (Gans, 2023; How Millennials are reshaping the rental market: Some plan to rent forever 2022). With Gen Z making up 83% of the fastest-growing segment of the market (Gen Z Statistics 2022), the demand is clear. Specifically, in Savannah, Georgia, individuals aged 25-34 make up 31% of apartment rentals (Savannah, Georgia Rental Market Trends 2022). This rise in renting is not without its challenges. The 'fast furniture' trend contributes to 9 million tons of furniture waste annually (Berg, 2021).
Preview
Our ultimate objective was to develop a user-centric, economically and environmentally sustainable model for apartment services. Driven by comprehensive employee&customer-centered research, our model optimizes work processes, enhances professionalism, and fosters satisfaction among both tenants and employees. It encourages a higher work ethic, creates a harmonious work environment, and alleviates tenants' financial stress from periodic moves. Furthermore, by extending the life of home furnishings, our model underscores the importance of environmental sustainability.
Preview
We believe that by increasing employee engagement and professionalism, enhancing service transparency, diversifying revenue streams, fostering community spirit, and optimizing common spaces, we can increase employee and tenant satisfaction and retention, cater to the “Collaborative Pathfinder” (Millennials and Gen Z), and improve the overall living and working experience.
Design Process
In this project, we've employed a methodology that synergizes insight-driven strategies and quantitative research. The methodology is broken down into five crucial stages:1) Monitor & Frame; 2) Explore & Identify; 3) Ideate & Visualize; 4) Prototype & Envision; 5) Experiment, Refine & Optimize. Remarkably, our process iteratively revisits the first two stages. This iterative cycle enables us to refine our insights continuously and effectively steer our research in the right direction, ensuring our exploration is anchored in relevance and driven by veracity.
Preview
Background & Challenge
In the dynamic landscape of the US rental market, Millennials and Generation Z are the driving forces. Nearly 3/4 of Millennials are renters, and an unprecedented 12.3% plan to rent indefinitely (Gans, 2023; How Millennials are reshaping the rental market: Some plan to rent forever 2022). With Gen Z making up 83% of the fastest-growing segment of the market (Gen Z Statistics 2022), the demand is clear. Specifically, in Savannah, Georgia, individuals aged 25-34 make up 31% of apartment rentals (Savannah, Georgia Rental Market Trends 2022). This rise in renting is not without its challenges. The 'fast furniture' trend contributes to 9 million tons of furniture waste annually (Berg, 2021).
Preview
Objective & Part of Outcome
Our ultimate objective was to develop a user-centric, economically and environmentally sustainable model for apartment services. Driven by comprehensive employee&customer-centered research, our model optimizes work processes, enhances professionalism, and fosters satisfaction among both tenants and employees. It encourages a higher work ethic, creates a harmonious work environment, and alleviates tenants' financial stress from periodic moves. Furthermore, by extending the life of home furnishings, our model underscores the importance of environmental sustainability.
Preview
Hypothesis Statement
We believe that by increasing employee engagement and professionalism, enhancing service transparency, diversifying revenue streams, fostering community spirit, and optimizing common spaces, we can increase employee and tenant satisfaction and retention, cater to the “Collaborative Pathfinder” (Millennials and Gen Z), and improve the overall living and working experience.
1.0 Monitor & Frame (1st Round)
1.1 Integrative Research Approach: Unveiling Challenges and Opportunities in the Rental Market
Based on our initial needs and objectives, we conducted in-depth research including observations, interviews, surveys, case studies, field research, interviews, and document analysis centered on the Savannah, GA region to collect more detailed data. Our research team consisted of two researchers, a service design leader, and a service delivery leader. In the initial data collection process, we first used a Stakeholder Map to identify key stakeholders, and a Stakeholder Prioritization Matrix to identify the entities that needed to be managed closely in the follow-up research. We then used a macro trend review, data analysis assessment, and competitor assessment to understand the current and future trends in the market. These tools and methods helped us to collect and analyze data more effectively so that we could derive accurate and in-depth insights.
1.2 Cross-Sectional Stakeholder Engagement & Market Trend Analysis: Laying the Groundwork for Innovative Solutions in Property Management
Based on the above we first determined a cross-section of tenants and employees as dual-centric, we began by identifying and prioritizing key stakeholders using stakeholder maps and a prioritization matrix, then proceeded to study market trends through a macro trend review, data analysis, and competitor assessment to understand the current and future trends in the market.
1.3 Survey Insights: Understanding Millennial and Gen Z Expectations in the Rental Market
We collected 192 survey responses from millennial and Gen Z tenants, and the findings revealed that as the main force in the apartment rental market, they have relatively higher expectations for apartment amenities and services, and need advanced facilities that can accommodate remote work, etc. However, the existing traditional properties are often unable to meet their needs. In addition, property service companies often lack effective communication mechanisms in dealing with tenant issues and complaints, which has led to widespread tenant dissatisfaction with service quality. These insights played a key role in moving our project forward.
Archetypes for Tenants (n=192):
1. Guardian Tenant - Safety-conscious, community-engaged.
2. Collaborative Pathfinder - Tech and eco-conscious, values digital living and services.
3. Harmony Keeper - Cleanliness-conscious, proactive in waste disposal and maintenance.
4. Self-Sufficient Solvers - Independent, owning their living arrangements.
1. Guardian Tenant - Safety-conscious, community-engaged.
2. Collaborative Pathfinder - Tech and eco-conscious, values digital living and services.
3. Harmony Keeper - Cleanliness-conscious, proactive in waste disposal and maintenance.
4. Self-Sufficient Solvers - Independent, owning their living arrangements.
Segments for APT Service Staff (n=23):
1. Master Orchestrator - Balancing tenant concerns, maintenance, and financial tasks.
2. Caretaking Handyhero - Handling repairs, facility upgrades, tenant satisfaction, and property durability.
1. Master Orchestrator - Balancing tenant concerns, maintenance, and financial tasks.
2. Caretaking Handyhero - Handling repairs, facility upgrades, tenant satisfaction, and property durability.
1.4 From Research to Key Insights: Unveiling Tenant Needs and Market Trends in the Rental Sector
Based on the initial insights from these surveys, we then interviewed 7 tenants and 4 property management employees and conducted 11 in-depth interviews to analyze the behavioral patterns of millennial and Gen Z tenants and employees, and found that tenants shared common pain points and corresponding needs such as inadequate work and study environments, economic pressure and frequent relocation resulting in inadequate living materials and immature life skills, which is a high overlap with the Collaborative Pathfinder group, so we set it as the target user group for the project. Here are simplified key insights from our research:
︎Low wages and competence among property management staff are affecting the quality of service provided, raising concerns about the efficient functioning of property teams.
︎In Savannah, the frequent tenant relocation adds to the instability of property management companies' income and puts financial pressure on tenants due to relocation and furniture costs. This also forces property companies to invest in maintaining and updating facilities, particularly in older apartments, which can affect both the companies' operations and tenants' satisfaction.
︎In Savannah, the frequent tenant relocation adds to the instability of property management companies' income and puts financial pressure on tenants due to relocation and furniture costs. This also forces property companies to invest in maintaining and updating facilities, particularly in older apartments, which can affect both the companies' operations and tenants' satisfaction.
︎The Collaborative Pathfinder tenant group, with distinct lifestyles and values, demands new features in rental spaces, like availability of household tools and bigger work/study spaces. Property companies need to adjust their offerings to meet these emerging needs.
︎The booming used furniture market in Savannah indicates a growing expectation for improved in-apartment amenities among tenants. This trend should guide property companies in enhancing their apartment amenities to attract and keep tenants.
︎The booming used furniture market in Savannah indicates a growing expectation for improved in-apartment amenities among tenants. This trend should guide property companies in enhancing their apartment amenities to attract and keep tenants.
1.5 Experience Mapping: Unmasking the Post-Occupancy Challenges in Property Services
Based on the data we collected, we mapped out a dual-centered experience map with tenants and employees and initially concluded that the experience that needed urgent attention was the post-occupancy portion of the property service experience. "We encounter a variety of service issues that are not perceived before moving in" - said the interviewee.
2.0 Explore & Identify (1st Round)
2.1 Collaborative Workshop: Fostering Innovation and Stakeholder Involvement in Service Design
To gain a deeper understanding and advance our service design program, we planned a hybrid online and offline workshop, using a collaborative and innovative format that brought in stakeholders. These stakeholders included three apartment tenants, a property manager, a property services employee, and a property cleaning employee. We aimed to stimulate and draw on their insights and innovative thinking to jointly shape the direction and content of the project. In brief, our workshops were dedicated to ensuring that all stakeholders were involved throughout the project, from problem exploration to solution building, which helped us both deepen our understanding of our users' needs and better plan and execute the project to achieve true value delivery for our tenants and property services staff.
First, we discussed and shared our previous findings and insights and validated the needs and expectations of apartment tenants and property employees in the experience map, as understanding user pain points and desires is key to designing a truly user-centric service.
︎Tenant Insights: Collaborative Pathfinder tenants prioritize high-quality remote work amenities, service, and affordability, assuming this will prompt long-term tenancy and referrals.
︎Property Staff Insights: Staff face turnover and maintenance issues, seeking to improve service while avoiding added stress, assuming this boosts job satisfaction and revenue stability.
Based on the experience map, we encouraged the participants to fully discuss and validate the known and unknown factors of the project in order to build a comprehensive and substantive Risk & Assumptions Matrix, which effectively helped us understand the possible challenges of the project and further develop strategies to address them.
At the same time, we identified various entities in the entire service ecosystem, including service beneficiaries, providers, enablers, and influencers, and together established an Ecosystem Map for the project. this process helped us to gain a deeper understanding of the complexity of the service process and how the various players interact with each other.
On the other hand, based on this activity, we gathered the vision of our tenants and employees for the future of our property services, and from this we identified the success criteria. These success criteria will guide us throughout this service design project, ensuring that our solutions meet the needs of tenants and employees, while also helping property companies achieve their business goals.
In the final phase of the workshop, we refocused on the Experience Map based on the insights and criteria we had gained, and after in-depth screening and comparison, we identified that the "Experience during the lease stage" was a Dead End for both users and employees. The reality of this stage was significantly different from the user's vision and expectations and was far from the criteria for success. Therefore, we decided to focus on the tenant's experience during the lease term as the main focus of our project. We combined our previous insights with this workshop to develop preliminary "How Might We" (HMW) questions:
︎How might we inspire greater passion for work through in-depth employee-centered research and a user-centered work model that creates a productive, satisfying, and decent work environment and enhances the tenant's apartment experience?
︎And how might we improve tenant and employee satisfaction by meeting the needs of millennial and Gen Z tenants for remote work and learning, and addressing the financial stress of periodic moves, and finally improving communication between the property management company and the tenant?
3.0 Monitor & Frame (2nd Round)
To gain a deeper understanding of this issue and to obtain more specific details about the "Experience during the lease term" phase, we conducted a second round of employee-centric research to identify opportunities for growth and innovation and to drive more effective collaboration strategies for trend analysis and competitive analysis. We conducted a series of stakeholder interviews over the phone with a total of eight participants, including tenants, property managers, and property services staff, lasting approximately 30 minutes, in order to understand the complete process, perceptions, and insights of apartment property services throughout the residential experience phase, as well as their expectations, hopes, and key issues with property services. These interviews helped us to gain insight and validate the needs and pain points of our users, providing valuable insight for our next service design.
4.0 Explore & Identify (2nd Round)
4.1 Insight Synthesis: Micro-Experience Mapping for Comprehensive Pain Point Analysis
The results of the interviews were collated and analyzed to form a complete micro-experience map of the current service experience during apartment occupancy, which incorporates descriptions of property and staff processes and procedures, as well as pain point analysis. The experience map will detail the experience processes, touchpoints, and key pain points, and analyze these findings and pain points against our program goals and success metrics to guide our next steps.
By analyzing the experience map and comparing the pain points with the success indicators, we found that the existing services that we need to optimize are: cleaning and maintenance services, services provided by the property office building, and services for public facilities and spaces. We also identified that the services we needed to add were apartment community services. Finally, our updated hypothesis was determined:
︎We believe targeted strategies can address apartment rental challenges. Therefore, if we boost employee engagement, foster community spirit, enhance service transparency, diversify income sources, and optimize communal spaces, we expect to increase satisfaction and retention for both employees and tenants, catering to “The Collaborative Pathfinder”, and improving the overall living and working experience.︎
︎We believe targeted strategies can address apartment rental challenges. Therefore, if we boost employee engagement, foster community spirit, enhance service transparency, diversify income sources, and optimize communal spaces, we expect to increase satisfaction and retention for both employees and tenants, catering to “The Collaborative Pathfinder”, and improving the overall living and working experience.︎
5.0 Ideate & Visualize
5.1 Co-ideation Workshop & Prioritization: Harnessing Diverse Insights for Systemic Change in Property Management
6.0 Prototype & Envision
6.1 Organization-facing outputs: Unleashing Innovation in Property Services Through Strategic Framework
Following meticulous analysis, we have curated a holistic service implementation plan and an insightful report incorporating a problem statement, stakeholder and ecosystem map, archetypes & segments results, experience map, insights result, evolution map, and qualitative and quantitative summative research.
Our work manifests an innovative strategic framework, the "evolution map", masterfully integrating diverse concepts to drive a transformative journey in apartment services. Our methodology outlines actions and rolls out a phased implementation of concepts - a process pivotal for ensuring feasible growth and profitability throughout all stages. This approach has engineered a dynamic transition for property services through five core directions:
Our work manifests an innovative strategic framework, the "evolution map", masterfully integrating diverse concepts to drive a transformative journey in apartment services. Our methodology outlines actions and rolls out a phased implementation of concepts - a process pivotal for ensuring feasible growth and profitability throughout all stages. This approach has engineered a dynamic transition for property services through five core directions:
︎1. To tackle high staff turnover, low income, and skill deficits, we've implemented proactive staff engagement strategies including preventive maintenance workflows, a tenant-employee performance feedback system, and performance-optimized KPIs to uplift morale and performance.
︎2. Embracing the emergence of sharing and sustainable economies, we've launched tenant-centric services such as a community-based home tool rental and second-hand furniture trading service. This not only fosters a sense of community but extends product lifespan and reduces maintenance costs.
︎3. With a focus on transparency and responsiveness, we've developed an intuitive app allowing users to easily navigate service charges, levels, and real-time updates, revolutionizing how they interact with services.
︎2. Embracing the emergence of sharing and sustainable economies, we've launched tenant-centric services such as a community-based home tool rental and second-hand furniture trading service. This not only fosters a sense of community but extends product lifespan and reduces maintenance costs.
︎3. With a focus on transparency and responsiveness, we've developed an intuitive app allowing users to easily navigate service charges, levels, and real-time updates, revolutionizing how they interact with services.
︎4. On the business spectrum, we're tapping into value-maximization via strategic alliances, space leasing, bespoke services, and advertising opportunities, generating fresh revenue streams to counterbalance tenant turnover costs and operational expenses.
︎5. We're redefining apartment public spaces with smart segmentation and management. The introduction of functional zones and reservation systems addresses the need for remote workspaces, thereby enhancing the residential experience.
︎5. We're redefining apartment public spaces with smart segmentation and management. The introduction of functional zones and reservation systems addresses the need for remote workspaces, thereby enhancing the residential experience.
6.2 Turning to our customer-facing outputs: Reinventing Tenant Experience Through Intelligent Service Solutions
In harmony with our "evolution map", we've pioneered customer-centric concepts such as smart segmentation of public spaces, real-time service updates, and a community-led Tenant Aid Network promoting second-hand trading and tool rental. This journey entailed deep exploration into the deliverables of each concept, resulting in the creation of the Tenant Aid Network app. This integrative platform brings together services like second-hand trading, tool rental, and incentivized community aid, offering a seamless user experience. Additionally, we've redesigned the apartment's indoor public service spaces, crafting zones for remote work and study needs. This not only enhances service delivery but fosters connections amongst tenants, staff, and shared spaces.
7.0 Experiment & The Impact
7.1 Assessing Future Rental Services: Testing and Fine-tuning our Approach for Impact
With these initiatives, we're paving the way for a more interconnected, user-friendly, and dynamic living experience, driving toward our evolution map objectives. Our project, built on an exhaustive study of Savannah's property services, aims to create a transformative impact for both property service providers and tenants. Collaborating with industry professionals, we've managed to craft strategies that could affect 14,648 individuals in Savannah and up to 12.05 million people nationwide (Savannah, Georgia Rental Market Trends 2022; Household Characteristics 2021). Our focus is now on refining these strategies, evaluating actual costs, and conducting small-scale feasibility tests. This approach will allow us to fine-tune our initiatives based on real-world feedback, which is integral to our successful rollout.
To ensure our customer-oriented solutions hit the mark, we've used online interviews and surveys to test the concepts. The feedback on our Smart Segmentation of Apartment Spaces, Tenant Aid Network (TAN), and Real-Time Service Request Updates has been positive: 77.1% of respondents believe in smart segmentation for remote needs, 76% support TAN for trading second-hand furniture, and staggering 85.8% desired real-time service updates. Despite this promising feedback, we recognize that our study's universality might be limited by our sample size. Therefore, the next step necessitates the involvement of specialized teams such as UI and interior design professionals for systematic viability, feasibility, and desirability testing. This will ensure we provide a detailed, robust, and effective service for all tenants.
Impact on Management:
- Our strategy provides management with a dynamic "evolution map" to address issues like high staff turnover and low income.
- Proactive engagement strategies and performance-optimized KPIs uplift morale and productivity, leading to feasible growth and profitability.
Impact on Staff:
- Staff engagement strategies enhance skill sets and job satisfaction.
- Implementation of preventive maintenance workflows and a tenant-employee feedback system creates an efficient and satisfying work environment.
- Our strategy provides management with a dynamic "evolution map" to address issues like high staff turnover and low income.
- Proactive engagement strategies and performance-optimized KPIs uplift morale and productivity, leading to feasible growth and profitability.
Impact on Staff:
- Staff engagement strategies enhance skill sets and job satisfaction.
- Implementation of preventive maintenance workflows and a tenant-employee feedback system creates an efficient and satisfying work environment.
Impact on Government:
- Our model aligns with the government's sustainable development goals by embracing the sharing economy and promoting sustainable living.
- Extending product lifespan and reducing waste contribute to environmental preservation and climate action goals.
Impact on Tenants:
- The Tenant Aid Network app and smart segmentation of public spaces enhance the resident experience.
Intuitive interface for managing services and fostering a sense of community caters to modern living needs.
- Our model aligns with the government's sustainable development goals by embracing the sharing economy and promoting sustainable living.
- Extending product lifespan and reducing waste contribute to environmental preservation and climate action goals.
Impact on Tenants:
- The Tenant Aid Network app and smart segmentation of public spaces enhance the resident experience.
Intuitive interface for managing services and fostering a sense of community caters to modern living needs.
Reference
Gans, J. (2023, April 29). Nearly three-quarters of millennials are living paycheck to paycheck: Report. The Hill. https://thehill.com/business/personal-finance/3979656-nearly-three-quarters-of-millennials-are-living-paycheck-to-paycheck-report/
Gen Z statistics: What we know about them - rentcafe. (2022). https://www.rentcafe.com/blog/gen-z-statistics/
How millennials are reshaping the rental market: Some plan to rent forever. Geraci Law Firm. (2022, December 8). https://geracilawfirm.com/the-originate-report/how-millennials-are-reshaping-the-rental-marketsome-plan-to-rent-forever/#:~:text=In%20a%20November%202019%20national,10.7%25%20just%20one%20year%20ago.
Savannah, Georgia Rental Market Trends. Point2. (2022). https://www.point2homes.com/US/Average-Rent/GA/Savannah.html
Last Updated: July 12. (2023, June 15). Property Management Industry Statistics & Trends [2023]. iPropertyManagement.com. https://ipropertymanagement.com/research/property-management-industry-statistics
Berg, B. (2021, April 12). The Fast Furniture Problem. Architectural Digest. https://www.architecturaldigest.com/story/sustainability-fast-furniture
Admin. (2019, August 6). The circular economy - What is it and why does it matter? Recycle Track Systems. https://www.rts.com/blog/the-circular-economy-what-isit-and-why-does-it-matter/.
Bischof, H. (2019, May 30). Fast furniture: what's wrong with it and 7 ways to make better choices (for you and the planet). Medium. https://heidibischof.medium.com/fast-furniture-whats-wrong-with-it-and-how-to-start-giving-acrap-about-our-planet-and-eb780bf74de9.
Cannon, J. C. (2018, August 10). How Furniture Demand in America Thins Forests Across Central Africa. Pacific Standard. https://psmag.com/environment/africandeforestation-is-affected-by-american-furniture-demand.
Household characteristics. NMHC. (2021). https://www.nmhc.org/research-insight/quick-facts-figures/quick-facts-resident-demographics/household-characteristics/