Millennials and young professionals with higher incomes currently looking for apartments are seeking five features in their ideal home. The two demographics are major drivers of the current rental market. If you want to improve your investment property management performance, then it’s time to focus on this emerging demographic.
According to a recent study from the Pew Research Center, 74 percent of Millennials currently rent. The study also found that they are committed, long-term renters with no plans to buy a home in the future. In fact, once Millennials find their ideal apartment they’re less likely to move than renters in other age groups.
Millennials are the demographic every property manager wants to win over. In a word, Millennials are considered the ideal tenants. However, marketing to this group requires understanding them, which isn’t easy since Millennials have very different expectations and values than previous generations. However, since they are typically long-term renters with no plans to buy in the future, millennials have very different needs and values than previous generations.
A recent post from Rental Housing Journal reports that Millennials and high-income young professionals are focused on rentals that provide the five features listed below. So, get your investment property management skills on the fore and provide all these features to them.
Location is essential. Young professionals and Millennials want apartments located close to mobility hubs offering multiple transportation options that can provide a short, easy commute to main city centers.
Young professionals and Millennials are not generally price-sensitive, but in competitive rental markets they’re comparing rental rates as well as the amenities being offered. As a project manager, you need to keep close tabs on your competitors’ rental rates as well as the amenities they’re offering to capitalize on this renter market.
Again, location is key. Young professionals and Millennials want to be close to city centers and areas with an abundance of restaurants, bars, and nightlife from which to choose. If your rental property is in an urban area, be sure to accentuate your location and its proximity to nearby young, hip city centers in your marketing efforts. If your property is very close to the heart of the city center, include it in your listings—for example, “2 miles from the city center” or “1.3 miles from the city’s commercial and business hub.”
Millennials and young professionals have multifamily complexes competing at breakneck speed to add bigger and better amenities that appeal to their demographic. Yoga studios, outdoor fitness spaces, serious green upgrades including solar panels and composting facilities, electric car charging stations, state-of-the-art shared workspaces, and much more. Fitness centers, clubhouse or common spaces for socializing are very attractive to this demographic. Young professionals are out and about working and networking most of the day, so smaller apartments will fit their needs perfectly well. On the other hand, social amenities—areas on the property that allow for entertaining and shared activities—become more valuable and sought after.
Young professional and Millennial renters want a co-living environment where they can work as well as entertain and socialize. entertain but also work. As mentioned above, shared workspaces are among the hottest amenities multifamily complexes are adding to their growing lists of amenities to position their brands among well-entrenched competitors. Business centers may just be one of the upgrades that you can add to your offerings on top of superior investment property management, of course.