You will perhaps be unsurprised to discover that the largest demographic of people that are currently renting is, by some margin, Millennials. This word has a mixture of connotations surrounding it. Whatever your opinion though, what you can't ignore is that as older generations settle down, millennials (aged roughly between 24-35) are taking over the rental market.
In this age of consumer service, to minimize vacancies landlords need to understand what their target markets require and expect from them, and how to best appeal to a tech savvy, globally minded generation.
People love their pets, and it's worth noting that some 76% of millennials own pets. Yet, only a small minority of landlords allow animals in their properties. This is understandable, pets come with additional wear and tear, and irresponsible tenants with pets could add up to thousands in damages.
As landlords ourselves we understand the damage that pets can do to a property, however, capitalizing on this obsession could help you appeal to a majority of renters and help you minimize vacancies.
That isn’t to say you should be unprepared. Millennials love pets and they are willing to pay extra for them.
Read the Article: The Smart Landlords Pet Policy.
With marches around the world being led by the younger generations, no one knows or understands better than millennials the environmental troubles that our planet is facing because of direct humans action.
We (yes I'm one of these millennials) have grown up with a constant inundation of viral articles, memes, images, and videos that leave no room for doubt in our minds that something needs to be done to help preserve our planet for future generations.
Something that isn’t being talked a lot about though is making homes more eco-friendly.
In 2008 Europe and the UK signed an agreement to reduce carbon emissions by 80%-95% by 2050. One of the main focuses of that agreement was to create more energy efficient homes.
In the US it’s not talked about or incentivized in the same way. That isn’t to say though, that millennial renters in the US don’t want eco-friendly, energy saving homes. They do.
Installing a smart meter is one way you could help them cut their bills down by 20% or more. The planet will thank you, they’ll thank you, and it leads us into the next point – their wallets will thank you.
A lot, though of course not all, of millennials are very conscious of their money. Wages for average Americans haven’t risen in line with inflation yet the cost of living steadily increases.
On top of this new technologies are constantly evolving to make it easier than ever to manage and invest your money with Neobank apps like Acorn and Robinhood giving people an easy way to save and access the stock markets.
To appeal to this sensibility then you need to offer a little more. You need to offer them freedom, value, and good customer service.
Offering more value for money, whether that’s something as simple as installing a smart thermostat to help renters manage their energy bills then will count massively in your favor when trying to appeal to millennial renters.
Read the Article: 10 Amenities Renters are Willing to Pay more for
In a study by Social Media Today they found that on average, people spend around 2 hours a day on social media. I suspect that number may be higher because I know for a fact that most of my friends don’t stop looking at their phones – at all.
The way to reach millennials then is through the social media channels that they are spending so long each day looking at. To get your property in front of the right renters you will need to be active on the right social channels.
It’s not all about social media. Your rentals are a business in an of themselves, as such you need to present yourself well online. It would be foolish to say the least to imagine that a prospective tenant isn't going to try and find out a little more about the property and the landlord through a few quick searches on their phone. You should control what they find and ensure it's positive.
You should have a website, as well as a strong social media presence. Here you should document the good things you do for your tenants in the management of your property, as well as have your tenants review you as a landlord. Nothing is more powerful than a review.
Millennials are health conscious and very aware of the lives they want to live. They want to maintain a quality work-life balance. Part of that is doing frequent exercise and eating healthily.
If possible, you could convert free space in your building into an exercise area. Or if that’s not a possibility, think about reaching out to local businesses and working with them to get your tenants a good deal with the local gym or restaurants.
The way people engage with the world is changing. And with it the way we have to manage not only businesses but rentals.
Thankfully, technology is adapting faster than ever to make it easier for landlords to reach and engage with relevant people in the right way.
Software like Landlord Studio makes it easy to manage your property accounts, and websites like Bigger Pockets and Zillow have made it easier than ever to learn, engage with the community, and get your rental in front of the right people.
Millennials are the largest group of renters currently, but it won’t be long until it’s Generation Z. When that day comes if you haven’t managed to adapt to renting to Millennials you’ll find it even harder renting to a generation that’s even more ingrained in mobility, digitization, globalization, and social networks.