When you stop and think about who is likely to be your best rental market, who comes to mind? Is it young people just getting started in life, people who are waiting to buy their next home, what about seniors? While each of these demographics does in fact represent a large share of the market, it might surprise you to learn the Millennials are rapidly taking over and are on their way to becoming a major player.
Why is this the case? To put it quite simply, millennials are taking over the rental market because they want to rent instead of buy. The rent their homes because they love it. You might think that in an age where interest rates are at historic lows while rents are skyrocketing, no one in their right minds would put off buying a home of their own. Many people buy their first home once they find the right partner and start thinking about starting a family.
But millennials are not rushing to do this, in fact, more of them are putting this off as they aren’t ready to make this type of commitment and settle down to raise a family. On top of this, many of today’s millennials are struggling under mountains of student debt, which is often enough to prevent them from getting an affordable mortgage.
More Than Just Debt
But it isn’t just overwhelming student debt that is stopping millennials from buying and turning them into long-term rental tenants. Many simply don’t feel the need to own a home or deal with the responsibilities that come with home ownership. Millennials are famous for moving at the drop of a hat. Buying a home means being committed to living in a specific area, renting makes it possible for them to move out quickly without having to worry about the financial issues that can come with trying to sell a home only to buy another one.
The fact that you have a property management company taking care of your rental units is seen as another major bonus to millennials. Many have just left home or are looking for their first “home” that is not a college dorm room. They like the idea of having someone else to take care of all the details for them. Whether the hot water heater has quit, the air conditioning isn’t blowing cold, or the lawn needs mowed, the idea of being able to make one phone call to get things done is very appealing.
Although it might seem as though Millennials could be challenging to deal with considering their diverse needs, making the effort to cater to these needs can pay off in a big way. Being ready to meet these needs, making sure your rentals have the right amenities, and are located in the right communities can help you maximize your efforts to attract members of this community and keep your rental units filled with tenants from this relatively new market.