Why Millennials Prefer Renting & How You Can Benefit from The Trend
The Millennial Generation has grown up. Most often defined as those born between 1980 and 2000, the current age range of these up and comers is 17 to 37. They are the largest American generation on record, surpassing the Baby Boomers by almost 15 million. At nearly 100 million strong, it’s impossible to ignore their powerful influence as more of them enter adulthood. If Millennials were anything like their predecessors, there would be a massive hike in homebuying as the new generation geared up for major life milestones like marriage and having children. That isn’t the case with today’s busy, tech savvy twenty and thirty somethings. The modern world has become much less stable than the decades before it, and Millennials have learned to adapt by embracing a philosophy of flexibility and freedom over the traditional American dream. So, how can real estate investors benefit from the changing times? Landlords everywhere are preparing for the next boom in rental properties. At DKRentals.net, we help Atlanta area property owners manage their responsibilities so they can increase their revenue while living a balanced lifestyle. We have helped countless local investors successfully market and rent to thriving Millennials, and offer some tips so you can do the same.
The Most Common Reasons Why Millennials Like Renting
There are many factors that go into the rental trend of Millennials. However, many assume that the shift is occurring as aftermath of the 2009 recession, and because it’s more difficult for younger men and women to get mortgages. While this may be an influence for some young adults, the truth is that most are freely electing to rent instead of buy for several reasons, including:
- Flexibility to relocate for career, family or travel.
- Provides an opportunity to “upgrade” as desired. Many expect an increase in income and want to move into a better property or neighborhood within the next few years.
- Access to amenities that lower overall living costs such as swimming pools, recreational areas and gyms.
- Less maintenance responsibilities exist for renters, which leaves more time to focus on other priorities.
- Higher monthly cash flow and less debt.
This means that Millennials aren’t rejecting mortgages because they lack the available resources, in fact there are many wealthy young adults that simply choose to have more flexibility with the money they earn. Many Millennials are already steeped in student loan debt, and tying up more of their cash in large single purchases like homes and luxury cars is less of a priority.
Buy Properties in Trendy Neighborhoods
If you want to appeal to Millennials with larger incomes, consider buying rental properties in the trendiest neighborhoods. Many single men and women in their late twenties and early thirties are willing to pay extra to live in the community that their most comfortable in. Most young adults aren’t trying to move to the suburbs, they would rather be close to areas where there is plenty of entertainment and culture. If you want to attract the wealthiest young renters, make sure you’re looking at homes and condos in the most sought after addresses of the city.
Choose Rental Units Close to Universities and Corporate Offices That Hire Millennials
A lot of young adults rent while they’re finishing their doctoral degrees at Universities or because they frequently relocate for their corporate job. If you want to market your property to this generations highest earners, it’s important to have rental units close to the places where they work and learn.
Amenities Are Important
Not every real estate investor can purchase large, trendy apartment complexes and condos. However, it’s important for landlords to realize that they will be competing with these same properties for quality tenants. Consider buying rental condos in buildings that already provide communal areas and extra perks. If you are renting a single-family home to single Millennials think about ways you can make the property more attractive. For instance, if you own a four-bedroom house, think about renting by the room. Add exercise equipment in a finished basement or garage. Use a den or formal dining area as a shared entertainment space with a bar and home theater. Don’t be afraid to get creative.
Need Help Marketing and Managing Your Atlanta Area Rental Properties? Call DKRentals.net
Do you own residential or commercial rental properties in Atlanta, Georgia or the surrounding area? Then call the experts at DKRentals.net. We are a premiere property management company who has helped many local real estate investors grow their rental income while living the flexible lifestyle they’ve always dreamed of. Contact our office today to find out how we can do the same for you.
