If you are one of the many property managers in Orlando, it is likely that you have noticed that the majority of your tenants are Millennials. Millennials are leading the pack in the house and apartment renting industry. There are multiple reasons for this trend and CNBC reports that renting a house or apartment for Millennials is cheaper than paying a mortgage on the house and putting up the money for a down payment. U.S. Census Bureau data analyzed by HireAHelper found that on average, Millennials would need to save 6.4 years worth of their total annual salary to afford a down payment on a home. This is less than the Gen Xers and Baby Boomers who needed 5.6 years’ worth of their total annual pay to afford a down payment during their home-buying years. The simple truth is that while housing prices rise, salaries cannot keep stride with the increases. More and more people are choosing to rent from property managers in Orlando instead of a buy home, and many of these renters are Millennials.
Who are Millennials and What Do They Value?
Pew Research defines Millennials as those who were born after 1981, but before 1996. As of 2018, Pew Research determined a cutoff year to define the New Generation, meaning those born in 1997 until present day. Today, the oldest Millennials are currently 38-39 years old, meaning they are well into their years of what would be homeownership, however, New America reports that homeownership rates of Millennials are only at 38 percent, as of 2017. If they were to keep up with past age cohorts in 2000, there would be 1.3 million more homeowner households in America today. In the past, homeownership was associated with wealth and prestige. Millennials are changing this ideology. Today, they care more about freedom and traveling the world than homeownership. Millennials are not only choosing to rent homes, but the number of Millennials living with their parents is up as well. Millennials are getting married and starting families later in life, as they focus on their careers and saving money for having children. Another study that worked in property managers in Orlando’s favor found that Millennials desire housing options in downtown areas where they have quick and easy access to employment, dining, shopping, and a social life. It is also in these downtown areas that housing affordability is low. It should also be noted that Millennials watched parents and grandparents lose homes during the housing market crisis of 2008, which could also explain why Millennials are not committing to paying a monthly mortgage.
How Property Managers Can Attract Millennials
There are more than 88 million Millennials out there roaming America just waiting to rent your vacant rental property. Pew Research shows that Millennial households dominate the ranks of the nation’s renters in real estate rental trends. Last year, Millennials headed 18.4 million of the estimated 45.9 million households that rent their home. They are looking to rent single-family homes as they are starting to settle down with a partner or have growing families while looking to put down roots in a family-centered community. Millennials are digital natives and should be treated as such. Appeal to their strengths and needs by listing your rental property online. The old days of driving by properties and seeing them in person first are far in the past, causing property managers in Orlando to adapt to their target audience. Millennials want to see their housing options and they want to see them now through pictures online or through housing apps. Then if they like what they see and read, property managers might get a phone call (more likely a text or email) expressing interest and scheduling a time to view the property in person, all while the Millennial sits on a cozy couch in his living room. Make the application process seamless for Millennials, allowing them to apply online, pay online, and sign the lease agreement digitally. As mentioned above, Millennials want to be free. They do not want to be tied down to a mortgage. They want to be able to pursue that dream job on the other side of the nation or world, should the offer arise. If you find that you are getting resistance by offering a 12-month lease term, consider shortening the term to six or nine months. Property managers in Orlando do warn against only offering month-to-month terms, as tenant turnover can get costly if a property manager is to return a house to rent-ready condition every three to four months.
How Property Managers Can Keep Millennials Longterm
One of the best ways property owners can keep cash flow high is by tenant retention. Treat tenants the way you would want to be treated. Millennials are especially in tune with how property managers treat them, and you better believe that they are quick to take to online review boards whether they are treated well or not. Millennials are quick to share their experiences just about anywhere they have been including restaurants, salons, veterinarians, gas stations, and yes, property management companies and landlords. In addition to this real estate rental trend, landlords and property managers in Orlando should accommodate Millennials as best they can, considering that they are one of the largest demographics of renters. Media Post found that 75 percent of Americans in their 30’s own a dog and more than 50 percent own a cat. The study states the facts, and now it is up to landlords to make their properties attractive to their target audience. Millennials are obsessed with their pets, and you do not have to look far to confirm these statistics. Young adults can be seen just about anywhere with a pet in tow. Even better, many of these pets are decked out in outfits, jewelry, or even getting pushed in a doggie stroller. Keeping in mind that Millennials love their pets, it would be wise for property managers and landlords to offer pet-friendly housing. Doing so will increase the rental pool of potential applicants. Millennials also value efficiency. Going up in the digital age, they want things and they want them now. Private property managers in Orlando would be wise to purchase rental properties in a neighborhood that allows for quick access to highways, freeways, and major thoroughfares. Doing so can make a rental property very attractive to Millennials. Keep in mind that this demographic likes freedom. They want to be able to come and go as they please, without any limitations. Options for dining, shopping, gyms, socializing, and entertainment must be within close proximity and available. Neighborhoods that offer luxurious amenities are also highly desired by Millennials. However, when purchasing a property for the purpose of renting it outl, make sure that you know the Homeowner’s Association rules about renting out the premises. Many HOA’s have regulations or stipulations on rentals while some do not allow them at all. Be educated about the neighborhood, community, and rules prior to renting out the property. It also does not hurt to look at future city plans surrounding the neighborhood including infrastructure and walking trails. Do your homework and your chances of owning an income-producing property can be very promising.
“Rent Only” Communities Attract All Demographics
Property managers in Orlando know that there are more than 88 million Millennials in America and a report from Apartment List found that 12.3 percent of Millennials plan to “always rent” a home instead of buy. That is up from 10.7 percent just one year ago. With numbers like this, property owners are sure to have this demographic for the long haul. Business Insider found that some community developers are specifically catering to the Millennials by creating “rent only” single-family homes. However, Millennials are not the only ones drawn to these “rent only” communities. Empty nesters see the attraction of no longer needing to care for the yard or house maintenance. Millennials likewise are attracted to the freedom of no responsibility on Saturdays. Empty nesters can kiss the days of mowing the lawn and weeding goodbye, while Millennials have not and possibly will not ever know the experience of sacrificing fun on a Saturday for responsibilities, chores, appliance repairs, and yard work. In their minds, life is to be enjoyed and these responsibilities are holding them back from that. Simply put, renting from property managers in Orlando is an easier way of life for many. A “rent only” community is currently developing in San Antonio, Texas. This development has planned for 250 single-family homes that consist of three and four bedroom houses. The average annual household income for this community exceeds $100,000, which tells the story that even if residents could afford to buy, they are choosing not to purchase a home. This circumstance is not only true in Texas, but nationwide.
Why Property Owners Need Specialized Property Management in Orlando
With more than 30 years of experience in the property management industry, Specialized Property Management Orlando knows how to market properties to the right tenants, keep them long term, and run an efficient property management operation. Property owners who choose SPM Orlando can expect lower than average vacancy rates, cost savings on maintenance due to our vendor preferred pricing and preventative maintenance, quality tenants, professional interactions, and much more. If you are looking to get a higher return on your investment property, contact Specialized Property Management in Orlando today.