According to AppFolio.com’s research, Millennial renters make up 40% of the housing market, 90% of them are renters. If you’re thinking of renting out your property, you should seriously consider if you’re prepared for this generation of potential clients.
Who are the millennials?
According to the Pew Research Center, millennials are those born between 1981 and 1997, those are the 20-36-year old Americans today. Compared to the baby boomers, millennials have different priorities, values and expectations. They have a strong sense of work-life balance and more likely to choose a job that gives them enough personal time than a hectic job with higher pay. They are more environment conscious and community oriented, too.
So are you ready to rent out your space to this generation?
Here are some defining characteristics of the millennial renter and how you can address their needs:
- Millennials are digital natives. These is the generation who met internet when it was born; the generation who saw the evolution of your regular cellphone to its grandchild, the smartphone. Being tech savvies, they use technology to search for new homes and communicate with potential landlords.
With that said, you should have online presence to cater to them. Having your own website and a strong social media presence helps. If you don’t have these, make sure you hire a property manager with a website and a great social media presence. - Millennials have bigger student loans than the previous generation. Because of this fact, most millennials prefer to rent than buy their own homes. And this is probably the reason why most millennials have lower credit score. According to FICO, millennials tend to have more delinquent payments and shorter credit histories than other age groups, with 28% of millennials scoring in the 300-579 score range.
To be prepared, a thorough tenant screening process would be helpful.After all, the last thing you want is unpaid rent. - A huge percentage of millennials is single. With student debt to pay and the financial crisis experienced in recent years, most millennials put off life decisions that usually precede buying a house, like marriage and starting a family.
Given this fact, most millennials prefer to stay in the rental market longer. If you’re considering selling your property soon, you might have to put this in consideration before renting out your property. - Millennials are community oriented. Millennials are social beings and they would prefer to rent in apartment buildings or homes that are closer to restaurants and shops. They also like rentals that are accessible by walking, biking or public transportation.
- Millennials pay more for smart apartments. Aside from stable internet connection, millennials prefer homes with smart features like smart thermostats that you can control remotely or keyless locks and electronic security system.
- Many millennials have pets. Pets can go from your typical dogs and cats to reptiles and amphibians. Are you willing to rent out your space to tenants with pets? If so, is your property equipped with pet-friendly features?
Now that you have a better sense of the millennial renter, seriously consider if you’re ready to cater to them. Renting out a property is not easy and it might even be overwhelming at times. Need more help? Contact us and we can help you turn your property into a millennial-friendly space.
