Renting to Millennials, you say? Millennials make up about a quarter of the United States population, and by 2020, will account for one-third. At 90 million people, Millennials are the largest and most educated generation, but also the poorest and most indebted. Often characterized as lazy or narcissistic, Millennials want independent living, flexible work schedules, and more ‘me time’ on the job. Millennials are expected to adapt quickly to our changing technological world. On the flip side, Millennials are often described more positively as broad-minded and open to new or different ways of living.
What do millennials expect from rental housing?
Affordability is at the top of the list of things Millennials want from rental housing. Renting means freedom from living with parents. They want to make informed decisions based on facts and observation – they don’t want to be told what to do or where to live, or simply be told what they’ll love about the rental property. They want to see for themselves and make their own choices.
Millennials prefer to live near their place of employment to cut commuting time and expenses. They appreciate convenient amenities, such as direct access to their landlord when they need unexpected repairs. This generation tends to eat out less and dine in more and enjoys entertaining guests so a nice kitchen and social space are fundamental. Millennials may seek a pet-friendly environment, a community pool, a workout space, and additional perks, such as a free month’s rent.
How can property management attract Millennials?
Millennials are well-versed with technology, research, and resources, and will likely view your rental units from a mobile device. An optimized online presence is critical. Millennials are afflicted with student loans, static wages, and a lack of affordable housing near employment centers, and pay between 40-60 percent of their income toward housing. Therefore, the price range must be competitive and a good value. Millennials are resourceful and will compare the value of your rental to others.
Good communication with Millennials is crucial. First-time and younger renters may need guidance working through their expectations and agreements. Providing this information online and going over it with them in person will allow your renters to understand their freedoms and rights.
The influx of millennials and overall population growth is driving a major rental market increase toward a younger rental pool. Millennials are looking to rental properties for convenience, flexibility, and an alternative to homeownership. While they see homeownership as an option in the future, renting remains a viable and perhaps the only financially-stable option for millennials to create households today.
The property management experts at Nexus Real Estate Services understand the unique aspects of attracting and renting to Millennials. Contact us with your questions or to learn more about our services.