With such advanced technology revolutionizing almost every aspect of our lives, one might think it would be easier than ever to buy a home. A quick online research, however, reveals otherwise.
Most Millennials, in particular, are jumping straight into adulthood with no intention to buy a home by the time they’re 30. In fact, one study shows a whopping $93,000 is being spent on rent by the time Millenials hit their 30s, consuming roughly 45 percent of their income. The Great Recession, the housing bubble, and a postponement of both getting married and having children are all contributing factors to this increase in Millennial tenants.
Millennials aren’t the only ones taking advantage of renting, which comes with no requirement to pay homeowner’s insurance and significantly minimizes out-of-pocket cash spent on home maintenance tasks, like fixing busted pipes or worrying about replacing a water heater. For some, renting even means there’s no time or money spent on yard work. Retirees take note of these benefits and a large portion has ditched home ownership.
If you’re a seasoned landlord or thinking of getting started as a landlord, here’s a go-to guide for renting to Millennials and Retirees.
Marketing to Millennials
Research reveals when seniors and Millenials with the same income are compared to one another, the latter spends about twice as much time each day using the internet. With this in mind, listing your property on as many rental sites as possible is key to targeting Millennials.
You’ll also want to emphasize the amount of space your rental property has, both indoor and outdoor. Millennials enjoy gathering together with friends, family, and co-workers, so appealing to this preference by highlighting big kitchens, patio areas, and large family rooms should be a top priority.
Millennials work, and they tend to work long hours. They prefer quick trips to and from work, and this is why you should showcase a property’s convenient access to nearby highways, interstates, and public transportation.
Marketing to Retirees
Retirees are often wealthy individuals and provide a great opportunity to make a significant profit on your single-family home rental property. A Merrill Lynch studyshows the average home equity of retirees is $200,000. This means upon selling their home, they will have a substantial amount of money to spend on a rental. Even better is retirees have a move rate of only five percent. They are a gold mine for achieving a low tenant turnover rate.
To appeal to retirees, all parts of your rental property need to be easily accessible. It needs to have a flat driveway, a minimal number of steps, and even wheelchair access throughout all rooms and especially in the bathrooms. Consider putting in a ramp to the front door to make it easier to market your single-family home to retirees.
You’ll also need to ensure you provide traditional forms of communication and rent-payment methods. Retirees often prefer mailing their rental payments and speaking with landlords or property managers by phone rather than submitting an inquiry online.
Millennial and Retiree Amenity Preferences
Millennials and retirees alike look at amenities when choosing among various rental properties. Their preferences, however, differ.
A swimming pool and second-floor balcony are going to appeal to Millennials while retirees are more concerned with close access to grocery stores and medical facilities. Washer and dryer amenities are appealable to both age groups as well as nearby restaurants and shopping malls.
Probably the most notable amenity you can provide to both age groups is simple access to you — renters want to know they can call on the landlord or property manager at any time and receive a swift response.
Hire a Property Management Company to Ease Property Owner Burdens
There’s never been a better time to maximize your income. Renting out single-family home properties provides a viable way to hold onto valuable assets while still using them to improve your cash flow. The tasks involved in being a property owner can be burdensome, though. Partnering with a reputable property management company eases these burdens.
A property management company can market your rental properties, perform tenant screening, handle maintenance tasks, collect monthly rent payments, and more. This type of company understands the key differences between marketing properties to Millennials and retirees. Whether you’re targeting both age groups or one, a property management company can reduce vacancy cycles, improve tenant retention, and maximize your ability to obtain top-dollar for each property.
Are you ready to target your property rentals to Millennials or retirees? If so, contact Uptown Dallas Properties today for a free consultation. You can also download our free “Guide to Finding the Best Dallas Property Management Company” for helpful information you can use to interview property managers in your area.