The newsLINK Group - Renting to Millennials

Editorial Library Category: Multi-Family & Property Management Topics: Renting, Millennials Title: Renting to Millennials Author: newsLINK Staff Synopsis: Millennials might be a large group, but they want to be thought of as individuals who have a variety of goals. Despite that emphasis on individuality, though, there are some shared characteristics. Editorial: Renting to Millennials 4064 South Highland Drive, Millcreek, Utah 84124 │ │ (v) 801.676.9722 │ (tf) 855.747.4003 │ (f) 801.742.5803 Editorial Library | © The newsLINK Group LLC 1 Millennials might be part of a large group, but they want to be thought of as individuals who have a variety of goals. Despite that emphasis on individuality, though, there are some shared characteristics. They want their lifestyles to reflect their identities and their goals, but that doesn’t mean they are materialistic. Many millennials emphasize living as minimally as possible. They often own as little as they can manage. In addition, however, millennials are ambitious and uncompromising. What else do you need to know about them? They are more likely to rent than to own. The number of millennial renters is increasing. According to the Census Bureau, those between the ages of 25 and 34 are eight percent less likely to own a home than they were in 2006. That’s a sizable decrease. Why do they rent? Five reasons seem to explain the trend: 1. They can’t afford more debt, largely because of student loans. The Institute for College Access and Success says that for every ten students who graduated in 2012, seven of them graduated with an average of $29,400 in debt. Student debt has increased six percent per year, starting in 2008, and the cost is still going up. Many millennials just can’t come up with a down payment unless they save for a while. 2. Apartments are more budget-friendly than homes. Apartment owners have to pay rent and utilities. Home owners have to pay the mortgage, the utilities, the property tax, and the cost of maintenance and repairs. Sometimes there is also a fee for a home-owners’ association. 3. Many apartments offer attractive amenities that anything short of an expensive home can’t match: a good gym, a swimming pool, and maybe even a concierge. 4. Millennials like urban life, where the most affordable properties are in apartment complexes. Living in a city’s downtown area means ready access to cultural and sports events, night life, and a concentration of good restaurants. 5. Many millennials want to keep their options open about where they will live for as long as possible. If they decide to change jobs or careers, it’s a lot easier not to have to sell a house before moving. Renting a nice place preserves their options and allows them the time they need to decide what they will do for the long term. If millennials ask to take a look at your property, you should understand two things about their taking the time to meet with you: 1. They have already looked at everything available online about your community. 2. A sales pitch from you would be counterproductive at this point. They do not want to hear it. They just want to see what you’ve got in person so they can make final decisions. Before a millennial will sign the contract for an apartment or home, however, it may need to have the following: Online access to the manager or owner Real-time pricing and availability Communities that cherish pet ownership Walkable neighborhoods Ecologically responsible design The following sections will explain more about the must- haves, and about what you need to do to improve the chances that your millennial renters will also choose to renew the lease when it ends. Deciding Factors About That Access Millennials love the ease of being able to use a smart phone to do just about anything over the Internet, from making payments to staying in touch with friends. You’d think (if you are older) that the primary purpose of a phone is to call other people. You would be wrong. For millennials, texting is actually the preferred method of communication, and