What You Should Know about Renting to Millennials

by Prime Estate

Did you know that the largest generation by population size globally are comprised of those born between 1980 and 2000? They are what we know today as “Millennials”. Millennials have grown up in a time of rapid change, giving them a set of priorities, expectations, and behaviours sharply different from previous generations. And as millennials move into their prime spending years, they are anticipated to reshape the economy and force businesses to re-think the way they do business.

How millennials impact the property management scene

Millennials make up a huge chunk of our population and they prefer renting. Many millennials have carried student loans and many are unwilling or not quite in a position to buy their first home. They also find that renting provides the flexibility they need to maintain their lifestyles.

In Australia, millennials comprise 40% of the total renting population. This is a significant percentage, meaning you should always have millennials in mind when marketing your rental property.

Not only are millennials a big part of the renting population, they also have the financial capacity to pay for top rent prices. Most millennials are self-employed with their own business, while those working in corporate offices have good salaries and are entering higher level positions in the workplace.

Attracting millennials to your rental property

Millennials have unique needs and experiences, which taken into consideration will help you market your property to this renter group. Here’s some important things to know about this generation of renters.

Millennials prefer renting. In Australia, they comprise 40% of the total renting population. Click To Tweet

They are fluent in technology

Growing up in the age of the Internet millennials rely heavily on gadgets, technology and the latest appliances to make their lives easier. They are more likely to rent with you if your property is fitted with the “essentials” which include high speed Internet connection and Wi-Fi, the latest appliances, and energy saving devices. Millennials are happy to pay higher rent for a property that supports their need for technology as they consider these crucial to their lifestyle.

Millennials are always online

They find all the information they need online whether it’s through social media, websites, or online directories. So you’ll need to make sure that information about your property is available online, with the necessary forms or easy access if they want to get in touch to make enquiries.

Most millennials are also very active in social media. To leverage on this, share your property listing on various social media channels, making it easy for them to send you a quick direct message if they are interested in your property.

Millennials live a social lifestyle

They like to entertain and catch up with friends over dinner or drinks. This means it’s important that your property has social space or spaces, whether it be the living room or a garden area, for entertainment. You can also highlight your property’s location as being near to restaurants, bars, or coffee shops where they can meet friends to socialise.

They prefer dining in

With the cost of eating out becoming more expensive, millennials prefer cooking their meals at home or prepping meals to take to work. They need a nice kitchen fitted with modern appliances to make them feel comfortable with cooking and eating at home.

They need to feel safe

For many millennials, this could be the first time they have moved out of their parents’ home to live on their own. They’ll want to make sure they feel as safe and secure in your rental property as they did back home. Having adequate locks or security systems can help alleviate their concerns about safety.

And since their generation likes to have a night out every now and then, millennials are also unlikely to rent in a neighborhood they feel unsafe in. For property investors, location is a crucial consideration when looking for a property.

Millennials love pets

More and more millennials own a dog or a cat, so it’s important for them to live in a pet-friendly property. Having a yard or garden where their furry friends can play could rank high on their list, as well as allowing properties to be tenanted with pets.

They are about to start families

While they may have been putting off significant milestones like marriage and children, that doesn’t mean they want to stay single forever. According to research by Goldman Sachs, the average marrying age for millennials is 30 years-old. Since millennials are born between 1980 and 2000, many of them already have young children, as those that were born in the 1980s are now well into their thirties, and many of the younger millennials are more likely to be starting to plan a family.

Making your property suitable for young families that include babies and young children may be important. Millennials may ask for details of nearest parks, schools and playgroups, which again highlights the importance of investing in a good location.

Understanding the millennial market

The millennial’s worldview is vastly different from those who belong to older generations, which may make them seem like they grew up in a completely different world. Understanding their perspectives, priorities, and experiences is essential to attracting the right millennial tenants.

If getting the right tenant is proving difficult, it pays to get the help of a good property manager. A property manager can take the stress out of managing properties and tenants, and make sure you are getting the right returns from your investment.

Millennials are powerful in their sheer numbers. They are tech savvy, multi-taskers who usually work hard and are very resourceful which generates jobs with great salaries and endless opportunities for this generation. With their love of mobility and flexibility, renting seems to be an ideal choice for their lifestyle. They might just be the tenant you are looking for.

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