If there was ever a model generation for landlords to have in their rentals, millennials would be that generation. Born in the 1980s to the 2000s, the millennial generation has far outnumbered other generations, such as the Baby Boomers, and while the Baby Boomers have recovered from the Recession of the 2000s, the millennial generation has not. With higher ratios of student debts and a competitive job market, millennials are not jumping into home-ownership but instead looking to rent for longer periods. This makes the millennial generation the perfect target for to market your rental property towards.
Before setting up the listing, or adding new repairs to the property it’s important to understand exactly who the millennial generation is and what they are looking for in a home.
Who Are Millennials?
- Millennials will account for 75% of the workforce by 2025.
- 94% of millennials use the internet and online sites to search for a home.
- Millennials are more likely to stay with their current employer for 3 to 6 years, compared to employer duration from Generation X at the same age.
- By 2020 one in three adults will be considered a millennial.
Millennials have the ability to shape the rental market due to the huge percentage of current applicants looking for a rental, and this trend doesn’t look like it is going to change anytime soon.
What Do Millennials Look for in a Rental?
- Proximity to Work
With the millennial generation holding their current jobs longer than previous generations they are less concerned with great school systems or quiet neighborhoods and more concerned with their commute to work. When listing the rental include information about train station, bus routes, highway systems and main roads.
- Environmentally Friendly
The millennial generation is also more conscious of the environment and going green. When renovating the rental property be mindful to add in green features such as energy efficient appliances in the kitchen and laundry room, energy-saving lightbulbs, low flow toilets and water-saving showerheads. These can be small updates but make a huge difference when it comes to the environment and cost-cutting on utility bills which is why this is appealing to millennials.
- Acceptance of Pets
More than 3/4 of millennials are pet owners, and by limiting a rental to only those without a pet you are drastically reducing your pool of ideal tenants. Speaking from experience, one out of every three apartments I looked at was not pet-friendly, therefore I was willing to pay more to find that one apartment that would allow my pet to live with me. There are also certain ways to protect your rental as well with the addition of “pet rent” fees and security deposits.
How to Reach Millennials
The first place millennials will look for a new rental is online so it’s important that you have a website and online listing for the home.
The rental listing should include:
- Monthly Rent.
- Security Deposit Cost.
- Quality pictures of each room, outdoor space and exterior.
- Pet Policy.
- Room count, including bedrooms and bathrooms.
- Amenities including the energy efficient appliances, and green upgrades.
- Location of property in relation to roadways, nightlife, and other venues.
It will also be beneficial to ask previous renters for reviews to place on your website as well because reviews and ratings are effective indicators of quality for the internet-savvy millennial users.
The millennial generation is important to the rental market since they are a hold a significant percentage of the current applicants and the trend toward renting over home ownership doesn’t look to be changing anytime soon. If you can make ensure that your rental property fits into what millennials are looking for then you will find that vacancy issues with no longer something to worry about.
If you’re looking to buy and hold another rental property, RCN Capital is here to be your go to Lender. As the nation’s premier direct private lender, RCN Capital fills a void in the marketplace by offering short-term commercial loans to fund the purchase of non-owner occupied residential and commercial properties. We also provide rehab financing and bridge loans. By offering custom loan programs and streamlined underwriting, RCN gets you the funding you need, when you need it.