Why Millennials Matter to Your Real Estate Investing Success and How to Win With Them
There is no dispute that the Millennials make up the largest segment of our population. They number around 80 million young adults who were all born between 1978 and 1995. They represent about 25% of the entire population. So it only makes sense that they also make up the largest tenant pool as well. By sheer population they represent our landlord’s largest customer base. Adding to the massive population that makes up the millennials, they also prefer to rent over purchasing at a rate that is much higher than their Generation X or Baby Boomer parents.
Needless to say, Millennials will sooner or later be your larger tenant base. The important thing to know is they have different wants, needs and expectations than your past tenants may have had. To maintain and, or build success in your tenant landlord relationships, you will definitely want to know how to create housing that suits them as well as how to prospect for them as tenants.
Do you know who this customer base is?
- They prefer to be mobile and not tied down (so renting is their preference)
- They wish to live near places of employment and activities
- They have great salaries and are not tied down to one job for life
- Many of them work from within their homes
- Many delay marriage and families until later
- They love electronics and gadgets
Understanding who these young adults are and what makes them tick is key to adopting them as a customer base. Anyone who has lived with a Millennial understand what makes them tick and those who did not struggle to understand this. Many large corporations hire consultants just to learn how to interact with them.
If you have had a chance to watch the movie “The Internship”, a movie about Google, may shed some light on their personalities. They work hours that are different than the customary 8 to 5 that most of us are used to. Many do not own a car or even have driver’s licenses as they prefer to have everything just a short walk, bike ride or bus ride away. (That was a hint as to where your properties need to be located to appeal to this group)
So what are the housing requirements?
- They want the latest amenities and yes they can afford them
- Friends are important to them so social spaces are important
- High speed internet and technology access
- Close to work and play
Important things to know when renting to Millennials...
- Think mobilization. They do everything from their mobile device, including apartment searches, filling out rental applications and paying their rent. You definitely want your website to be mobile optimized and technology friendly.
- They will search value. Value perhaps over price so do know what your competition is and stay ahead of them.
- 76% of them have a pet so you want to be pet friendly. Monthly pet rents are becoming the norm so include this option to win them over.
- Online bill pay if you expect to get paid.
- This group actually cook at home as opposed to dining out so have nice kitchens with all the latest gadgets.
- Safety has been shown through surveys as their number one priority, so make sure you have all your safety features advertised on your marketing and websites.
I have always found that when you know who your customer is and what they want it is easier to fulfill their needs and create a sustainable tenant pool.