Experts say that millennials are now the largest living generation. They are also one of the best target markets for owners of single family rental properties. Other than their sheer numbers, they also tend to rent, rather than buy, for several reasons for this.
First, they often have a large amount of student debt, which makes saving the money for a down payment challenging. Second, they tend to prefer to put their income toward doing things rather than owning things. They also tend to change jobs more frequently than other generations. And many of them saw their parents lose money on their home in the 2008-2009 crash. Consequently, renting gives them the comfort of a place to call their own without a mortgage to tie them down.
To tap into this large market, use these strategies:
- Make renting easy.Millennials have high expectations when it comes to using technology to simplify business interactions. Allowing them to contact you, setup an appointment to see the rental and pay their rent through an app or online portal rather than requiring that they write a check will be a point in your favor as they consider their rental options.
- Promote nearby services and amenities.Is there a microbrewery close to your property? Or a restaurant that features live music on weekends? Is your rental near public transportation? These kinds of things are often as important to millennials as the characteristics of the property.
- Allow pets.Millennials love their animals and won’t hesitate to look elsewhere if you don’t allow pets. If you are taking a pet-friendly approach with your rental, be sure to publicize that fact prominently.
- Let them customize their living space.Allowing renters to paint the inside of your property can be a big step. If you aren’t ready to do that, consider letting them paint one accent wall as a way to express their individuality.
- Show you care about the environment.Millennials tend to be eco-conscious. Upgrades like low-flow toilets and energy-efficient lighting will appeal to them and also save you money in the long run. And by all means allow recycling bins on the property.
An added benefit of renting to millennials is that they are very socially connected. Consequently, when one tenant or family moves out, it’s possible that someone in their extended circle will know of the property and be interested in moving in.