Viewpoint posted on Jun 19, 2019
The key to attracting and retaining millennial tenants
Millennials account for a large part of the world’s total population. People from this age group have experienced a lot in this time-span and still have the rest of their lives to enjoy. Millennials would currently fall under the age group of about 23 to 35 and are finishing up university or newly entering the workforce to become active working professionals.
At this stage in their lives, millennials are much more likely to rent homes rather than buying. They don’t feel the urgency to buy and lean towards renting. Also, the younger millennials have probably had to experience increases in costs of tuition fees at universities, so a lot of younger millennials with student loans are already high in debt and prefer to clear that first. As a result, landlords and lessors have a high market with a lot of potential tenants, mostly consisting of millennials.
In the modern rental market, landlords cannot simply rely on providing housing with basic amenities anymore. Millennials are now adapting to certain lifestyles that they want to implement in their homes. This means that the homes they are looking for must suit their needs and have several different facilities in order to be satisfied with them. For this reason, millennial renters tend to look for several aspects in a home before deciding to sign a lease.
The main aspects are mentioned as follows:
To begin with, the aspect of price stands true for any renter regardless of their age group. An unfair leasing price will draw away the interest of most renters. However, millennials look for a lot of amenities in their homes that they need. If they see that a home provides a lot of amenities and benefits to offer, a lot of them would not mind paying a higher price if it means higher comfort in their homes. As a lessor, focusing on this area could prove very beneficial and attractive to a millennial tenant.
Location is also a clear relevance for any renter, but how exactly is it relevant to a millennial? Well, the things that millennials prioritize about the location of a home is their proximity to the community around them. This means that things such as entertainment, bars, parks, universities, libraries, and their work should be something within close proximity to their homes. If not close, then it should be something that at least has a decent public transport connection. As a landlord, if you are renting out a home in a central location, that would be your main selling point and has to be market as efficient as possible (through millennials main news resource social media for example) to your prospective tenants and you are guaranteed to get multiple applications!
Dogs, Cats, Hamsters... Be Pet-Friendly!
Did you know that an incredible 73 per cent of millennials today currently own pets? Yes, the statistic is really that high! So, if you want to lease a home to a millennial tenant you need to accept that there’s a high chance your tenants have pets and will turn your home in a pet-friendly place. In fact, according to this article posted by CNBC, millennials will not hesitate to lose interest in a home that is not pet-friendly and make this a priority in their decisions. So overall, not only does this increase a millennial tenant’s chances of accepting your lease but it also greatly expands your market.
Be Environmentally Friendly
Another important thing to consider is that lots of millennials like to live an environmentally friendly lifestyle. They are aware of environmental crises occurring globally and do their best to make changes that are more sustainable and eco-friendly. Turning your property into an energy saving home can be a big advantage as a landlord. This can include solar panels, energy-saving utilities (energy saving light bulbs for example), recycling bins, etc. Also, offering secure bike storage for tenants who prefer to bike over travelling by car, an option they know heavily reduces their carbon footprints.
Perhaps a very critical aspect in a millennial tenant’s decision to rent a home is the amount/quality of amenities that come along with it. Understanding what your prospective tenants are looking for is a great advantage. This can include things such as furnishing, in-unit washing machines, dishwashers and parking areas. This can play a crucial part in securing a tenant. For example, in the state of California, providing refrigerators for tenants is not included in their habitability laws. Therefore, providing one is already an advantage for a landlord. Overall, the point is to understand what amenities your tenants are looking for and be able to provide them with that.
The final aspect and certainly a critical one is communal spaces. Think of student housing for example. Student houses or dorms always have common lounges where tenants can gather and hang out. Now, by applying the same idea to your property, you’ll also be providing your millennial tenants with the same value. Tenants don’t only want to have a good apartment, but also a good community. Communal spaces help them integrate with neighbours and be able to interact during their free time.
Wondering how you can attract millenial renters by taking care of a carefree user experience? Contact us.
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