“Attracting Millennial Tenants For House Lease” written by Mike Marko
The number of millennials (20yrs to 35yrs of age) looking for a house lease have been exponentially increasing over time. Hence, it’s logical for landlords to target millennial renters for their house lease businesses.
Attracting millennial renters to lease your units requires you to adapt to their preferences. They consider certain factors when they choose a place that they’ll rent. Knowing what those are is valuable to the success of your rental property business. All you need to do is to know what needs to be done for these millennial renters to lease your rental unit.
In today’s article, we will discuss why millennials are great target tenants for rental properties. We’ll also talk about how you can adapt your house lease to their preferences.
Adapting House Lease for Millennial Renters
Understanding the difference between millennial renters to traditional renters can provide benefits for your rental business. You’ll be able to cater to the needs of millennial renters if you have knowledge about them.
But before we discuss how you can adapt your house lease to the needs of the millennial tenants…
Let’s talk about who are the millennials first.
Who Are the Millennial Tenants?
The millennials are born between 1981-1997. They are now the individuals who are in their mid-20’s or early 30’s.
According to various surveys, millennials are constantly changing the economy due to increases in employment and other financial factors, as well as the rental property industry. Landlords and property managers should be aware of the data and increasing influence millennials are having on the economy and rental markets as indicated from surveys. Being aware of the recent surveys and details regarding millennials needs and wants will help them plan an effective business strategy to attract the upcoming millennial renters.
The numbers show their generation is more willing to move into a rented property than the traditional renters. That’s why they’re considered as a generation of renters.
Here are the other reasons that have been indicated by past surveys regarding why millennials often choose a house lease compared to purchasing a residential property:
- Millennials stay unmarried for long which lessens their appeal of settling down in a permanent place.
- Most of them are heavily relying on the current technology. Hence, they often choose to move into an apartment with amenities that suit their needs.
- Millennials want the freedom to move, or relocate to where jobs present themselves often moving to a new neighborhood when their lease is up.
- Most millennials rely heavily on technology, gadgets, and handheld devices. This is the reason why many of them don’t have much hands-on experience with different tasks and duties. Most of them rent properties so they can rely on the landlords when repairs are needed to be done.
New Ways to Attract Millennials
In the upcoming years, residential property owners and managers should expect a sudden influx of millennial tenants. Demand for rental houses or apartments has a high chance of increasing due to the influx of new millennial renters. This is something a property manager and landlord should take note of.
With this information, property managers can update properties and focus on increasing the amenities and features of the property to cater to the needs and wants of the target market: millennials.
Commonly the rental property should have several amenities that would attract millennial tenants. For instance, installing the current technology systems adding wifi and other technology is a must for millennials…
Property Improvements to Attract Millennials
Millennials have been changing the rental market for years making property managers scramble to attract this new style of the renter. A few years ago, renters only want a safe and empty room that they can call their home. But as time passes, millennial tenants are now looking for something more than just an “empty room.”
To the new type of millennial renter residential properties that offer just an empty room is often ignored. This is because the current generation of renters looks for something more–a place that can cater and satisfy their needs.
Millennials tend to be looking for properties that offer access to the latest technology, ease for surrounding services and more amenities available on site. The need or demand is for properties to be upgraded to include upgraded services integrated into the rented apartment and its surrounding area.
Aside from that, many millennial renters are searching for rental businesses and residential units that allow pets in the rented property.
It’s important to add in-demand amenities to your properties so you can attract more millennial tenants. Here are some of the needs of millennial renters that were previously not demanded by traditional renters:
- Access to technology,
- Sustainability to meet social responsibility,
- High-end amenities,
- Easy access and communication to landlords,
- Good location.
You should understand how important it is for millennials to have internet access. In fact, 90% of the millennial renters use the internet to look for house rentals. Utilizing the latest technology puts you in front of the millennial tenant’s radar.
Access to Technology
If your house for lease doesn’t have access to today’s basic technology like internet services, Wi-Fi, etc., your property will be completely ignored by millennial renters. Social media and access to internet cloud on a constant basis is quickly becoming the norm for most millennial renters.
As much as possible, the rented property must provide convenience and 24/7 access to technology. Technology makes communication easier. That’s why millennials expect a quick response whenever they contact their landlords.
Remember that millennials want the convenience of being able to transact on their gadgets in the comforts of their homes.
You should consider adding an option for your rental property business where tenants can pay their rent online. Along with that, providing a high-speed wireless internet is also a must. Adding a way to get your renters issues via the internet is a must for the millennials. Millennials, in general, are always looking for better, faster and more convenient ways to easily communicate and report their concerns.
Since your rental property business will use technology, you may also opt to integrate repairs and maintenance software. Allowing your millennial tenants and eventually all tenants the ability to report issues 24/7 is what is being demanded in the rental market so your tenants can easily find a way to report repair issues anytime.
Sustainability to Meet Social Responsibility
Unlike previous generations, millennials typically have a great sense of social responsibility and are constantly trying to find ways to reduce their impact on the environment.
According to studies millennials prioritize flexibility and convenience above other desires in their daily lives. Additionally, they value the importance of balancing their lives.
To satisfy your millennial renters, you need to help them meet and sustain their social responsibility. Reducing their living footprint on energy and waste is key to keeping them satisfied in a rental property.
Millennials want their homes to conform to social responsibilities like:
- Recycling services,
- Energy-saving light bulbs,
- Other quick-fix solutions, and
- Solar Energy.
Many landlords already encountered traditional renters who would pass on a rental property with high rent rate. The numbers of those tenants are steadily declining nowadays.
The new millennial renters are different in that they are willing to invest more in their rental property in exchange for their high amenity expectations. When a millennial inquired regarding your rental property, they will naturally expect home automation and high-end amenities. This includes…
- Digital gadgets,
- Trendy decorations, and
- Utilities that can be operated by a remote or their smartphone.
Adding recreational facilities for activities like swimming, workouts, and other types of sports is also a plus. Most millennials prioritize their health so they often exercise and go to the gym. Giving them the extra convenience of workout facilities where they live could separate your rentals from others in the area…
A property manager may give attention to the tenant’s hobbies. It’s also worth noting that community interaction helps in attracting millennials to rental properties.
Easy Access or Communication to Landlords
As mentioned, millennials are relying heavily on the internet. Having a 24/7 communication access with their property managers is a guaranteed way to keep them happy and satisfied with the services of your business.
Let’s assume that your rental property can’t provide some of the high-end amenities demanded by some tenants. Then another way to satisfy your tenants when it comes to your property services or features is by having a healthy or good relationship with them. When you are able to integrate property management software to help millennial tenant report issues 24/7 and have them addressed you are setting a new norm that will attract millennial tenants.
Additionally, millennials want a sense of community within the place they live in. They value having a decent relationship with their landlords and other renter tenants.
Since most of them have no experience regarding repairs and maintenance, being reliable in this aspect is treasured. For this concern, consider acquiring at least a repairs and maintenance software. Most of this software is internet-based. It can provide easy solutions for repair issues and help them to communicate with you easily. Having a handyman or contractor that replies to repair and maintenance issues within 24 hours of reporting is key to keeping millennial renters happy…
None of the mentioned improvements could help you attract tenants if your property is in the wrong location. After all, tenants will live in their rented property all throughout the duration of their tenancy. Its location is one of the biggest factors they take into consideration.
Millennial renters want their home to be located where different places are accessible. They value being near to their office and workplace. Having nearby restaurants, cafes, and bars are also attractive to millennials. When advertising or showing your rentals it is best to detail all the amenities that the area around the rental offers and build value in the community where the rental is located.
The millennial lifestyle of their generation is completely different from the previous generations or traditional renters. The millennial’s lifestyle doesn’t revolve around a single interest. Though they often spend hours on their gadgets or handheld devices, they still like going out and socializing with their friends. If your location has nearby amenities that attract them it will be easier for you to hook millennial renters to your property.
Some of the most desirable locations for millennial renters is for your rental property to be in the middle of a busy city. On the other hand, it should also be near places where tenants could walk and want to ride their bikes. Millennials want to be in the middle of the action for the community they are living. They also like easy access to all services and recreation via UBER or other easily accessible public transportation.
Final Thoughts on Adapting to Millennials’ Preferred House Lease
In this article, we tackled the increasing number of millennials looking for an apartment or house lease. Property management businesses should consider catering to their preferences to attract them with their rental units.
Taking note of the big difference between the needs of the millennial renters and traditional renters is valuable for your rental property business. Knowing your target market makes it easier to plan a strategy to entice them into renting your property.
If you have something to add about millennials opting for a house lease, or questions or need clarification, please use the comment section below.
If you need help marketing your business online then check out IM Consultant Services.
Disclaimer: This commentary is a matter of opinion provided for general information purposes only and is not intended to be taken as investment or trading advice under any circumstances. Information and analysis above are derived from sources and utilizing methods believed to be reliable, but we cannot accept responsibility for any losses any person may incur as a result of this analysis. Individuals should consult with their personal financial advisers. By using this web site or any information contained in it, the user specifically and expressly agrees that no advisor-client relationship is created between said user and any author, owner, executive, or principal of this web site by either use of this web site, or by any information, product, or service offered by or on this web site. No express or implied guarantees or warranties as to investment or trading results are made, and any perceived insinuations of such are hereby expressly disclaimed.