BABY BOOMER RENTERS A “hands-free” lifestyle is not just appealing to Millennials, how- ever. As one of the fastest growing groups of renters, Baby Boomers are contributing to strong demand for affordable rental homes that cater to their lifestyle preferences. According to Census data recently analyzed by search engine RentCafe, the num- ber of renters aged 55 or above rose 28 percent between 2009 and 2015. Projections estimate that this number will continue to increase over the next decade. A 2016 Freddie Mac survey found that the top factors influencing the types of rental homes in which Baby Boomers are choosing to spend their retirement years include the type of available amenities (44 percent), a desire for less home maintenance (41 percent) and less responsibility for the property (30 percent), and being close to family (31 percent) and other adults of the same age (25 percent). What this data shows is that rental homes that appeal to Baby Boomers will offer some or all of these fea- tures. Like Millennials, Baby Boom- ers are often looking for amenity-rich rentals in good locations. They are also increasingly looking for long- term rentals. “Even among renters who have experienced a rent increase in the past two years, a growing number – 64 percent – stated they do not plan to move, up from 49 percent in August 2017,” Freddie Mac report- ed. “This includes a noteworthy 70 percent of baby boomers.” Because of this growing trend, the demand for rental homes with quality upgrades and accessibility features is on the rise. As one of the most affluent generations, Baby Boomers are accustomed to a certain quality of living space. Rental homes that can offer upgraded features and landlords who make consistent improvements will be far more attractive to this
generation of renters. Baby Boomer renters are also looking for rental homes that will accommodate their accessibility needs for years to come. Rental homes with few or no stairs, accessible doorways, and other fea- tures (or a landlord willing to make accommodations) may be a strong factor in which rental home a Baby Boomer renter ultimately chooses. According to population projections from the U.S. Census Bureau, as of 2019, there will be 73 million Millen- nials and 72 million Baby Boomers in the United States. Together, these demographics are a force to be reck- oned with. Despite their differences, one thing that both Millennials and Baby Boomers have in common is a desire for rental homes that meet their needs, offer quality amenities and support a fulfilling lifestyle. Understanding which demograph- ic your rental property best appeals to — and how to market to them effectively — can ensure shorter vacancies and better long-term tenants for years to come. The ex- perts at Real Property Management understand how to attract the type of quality renters that property own- ers want. Our market research and property assessments will identify the most profitable upgrades and target demographic, giving property owners a distinct advantage over the competition. • FINDING YOUR DEMOGRAPHIC
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sential facet of their lives. Millennial renters are also looking for rental homes that will accom- modate them as they shift into new life stages. Currently, in their 20s and 30s, Millennials are a gener- ation in transition. Many are both career- and family-oriented and looking for a rental home with prox- imity to jobs and education as well as varied social amenities. Accord- ing to a recent CNBC article, Millen- nials are attracted to “full service” rental homes, which include things like concierge and housekeeping services. Such rental homes are attractive to Millennials because it frees them to concentrate on what they value most — fulfilling lives.
APPEALING TO TODAY’S LARGEST RENTAL MARKETS IS KEY FOR RENTAL PROPERTY OWNERS.
by Lukas Krause
MILLENNIAL RENTERS As a group, Millennials are choos- ing to rent more than any generation before them. Industry experts at Real Property Management have identified several reasons for this shift, from difficult economic conditions and low wages to a desire for proximity to social amenities. As young profes- sionals, Millennials are looking for rental homes that offer more than a roof overhead. They want properties and landlords that align with their
oday’s single-family rental home market is dominated
interests and values. One primary interest of the Mil- lennial generation is smart-home technology. According to the Rental Housing Journal, more than ever be- fore, Millennials want rental homes that are capable of smart technology integration. In many ways, today’s young adults enhance their social and professional lives with smart technologies. This means that when given a choice, they will choose a rental home that supports this es-
by two large generational groups: Millennials and Baby Boomers. Eco- nomic conditions and shifting gener- ational values have created a large base of long-term renters in each generation who are looking for rental homes that fit a certain type of life- style. This is why for rental property owners, understanding what attracts each demographic to rental homes is the key to long-term success.
Lukas Krause is the President at Real Property Management, the largest residential property management franchise organization in North America,
managing tens of thousands of properties for individuals, investors, and institutions through the country. Learn more at RealPropertyMgt.com or call 888.806.7088.
26 | think realty magazine :: july / august 2019
thinkrealty . com | 27
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