Property managers take note: Young adults nowadays have ample reason to put off important purchases like a home purchase. After all, they matured in the past ten or more years through periods of economic unpredictability. They witnessed the real estate bubble crash, mass layoffs, and their parents' financial concerns even if they may not have fully understood it all.
Although the 18 to 34-year-old age known as Millennials or Gen Y is responsible for much of the housing market's growth, many young consumers are delaying homeownership due to the recent economic downturn and recovery. Only one in four Millennials will actually buy a piece of real estate in the next five years, according to research.
Even if they wish to purchase a home, their income is lower than that of previous generations, making it more difficult for them to qualify for loans at a time when many markets have returned to their pre-recession prices. Young Gen Y adults are renting as a result, and rental property managers will need to comprehend this particular generation of renters in order to attract and retain their business. What you need to know is as follows:
Recall What It Was Like When You Were Younger
Only 3% of real estate agents, according to the National Association of Realtors® (NAR), are under the age of 30. As a result, relatively few agents and probably rental property managers serve this market. 81 percent of the population is over 45, and 20 percent is over 65. That age gap is considerable. If you're in the latter age bracket, you need to stop thinking like an established person and start thinking like a Millennial, who may have just left their parents' home.
Mobile And Digital Adoption Are Required
The modern consumer of digital real estate demands—no, expects—to be able to conduct all of his or her transactions online via a smartphone. This encompasses all actions, from looking for rental houses to submitting applications to making payments, all done with a single click.
Right today, if you want to manage a rental property, you need to be mobile-ready and able to connect with tenants online. Otherwise, you won't be doing business with the sizable population of Gen Y renters. Be active on social media, make your website mobile-friendly, and provide options for people to transact business online.
Be Prepared For Highly Educated Clients
In general, Gen Y is possibly the most highly educated generation to enter the workforce. They may quickly research a property from any place and get all the information they need, including its location, fair rental prices, the terms of the lease, and more. The majority of the information consumers require to make a decision is now available to them before they even speak with a real estate agent or rental property management, as opposed to the past when they relied on these professionals.
Be ready to answer inquiries and deal with unrealistic expectations built on by their reliance on unreliable web sources.
Provide For Their Parents
About 26% of Gen Yers still live with their parents, and even those who don't probably still communicate with them frequently. Many members of this age still rely on their parents' financial support, and they value their parents' opinions. When working with Millennials, be prepared to deal with Mom and Dad.
The Appropriate Rental Properties
They might present you with a wish list of the kinds of properties they are looking for. Nevertheless, knowing what appeals to this segment in a rental doesn't harm it.
The location, as well as the effectiveness and adaptability of the rental units, seem to be the most important factors to Gen Y. They seek quick access to amenities like public transportation, shopping, entertainment, and common spaces that promote social interaction. Furthermore, a lot of people put Wi-Fi, high-speed Internet, and cell phone service ahead of other conveniences. Do your research to learn about each person's must-haves because everyone is different. You risk permanently losing the business of Millennials if you don't hit the mark with the first few homes you show them.
This vast population of renters presents a genuine opportunity to be long-term, high-quality tenants because they are not immediately interested in purchasing. In actuality, 84% of tenants have never been in arrears on their rent, and only 4% have experienced eviction due to unpaid rent or other contract violations. Therefore, it is unquestionably in your best advantage to get knowledgeable about dealing with Gen Y renters.