Millennials are Changing Real Estate Rental Trends

“WELCOME TO THE FUTURE,” 2020 seemed to shout as it arrived, full of promise and enthusiasm. A new year, a new decade, and a fresh start. But what does it mean for real estate rental trends? We’ve already seen an increase in people choosing to rent rather than buy over the past decade. Now, millennials are the largest generation living on the earth and since they’re all around their 30s, they want to start settling down with their families. However, many millennials are not able to afford the current home prices or simply don’t want to buy. 

According to millionacres, “Interest rates have fallen in the past year [and] mortgage rates are expected to remain at historic lows for a while . . . Even with rates below 4%, it can be tough for some buyers to purchase a home. Many first-time homebuyers are burdened by student loans and have had difficulty saving up for a down payment.” 

Millennials are affecting real estate rental trends but if you’re a rental property owner, that’s a good thing. Learn how they’re changing the rental market in your favor, what you should do about it, and how Specialized property managers in Fort Worth can help. 

Who are Millennials? 

Millennials are the 30-somethings born in the ’80s and ’90s that are now the largest generation currently living on earth. They’re changing jobs frequently, posting constantly to social media, and relying on their phones for just about everything. They’re also traveling the world, standing up for what they believe in, and creating real change. Unfortunately, this change sometimes requires a lot of student debt and some assume that because of their debt, buying a house isn’t an option. Though this isn’t always the case, they also don’t want the responsibilities that come with owning a home. They’d rather focus on planning their next trip around the world than think about saving for home repairs. This means that millennials are choosing to rent instead of buy, and since there are so many of them, real estate rental trends are changing in a positive direction.

Millennials are Changing the Rental Market

Millennials, recently labeled as “Generation Rent,” may get a bad rap for being irresponsible or apathetic, but the truth is, they know what they want. It’s just not the mortgage and white picket fence that everyone else wanted for the last fifty years. This is great news for rental property owners because it means that rent rates are rising and their income flow is steadier than ever. It’s also a good time for investors to buy and take advantage of low interest rates. Property managers in Fort Worth like Specialized Property Management can help you know what type of properties to invest in, how to best market to millennials, and how to effectively manage your property. Staying on top of real estate rental trends is the only way to succeed in the current market, and trusting expert property managers like Specialized Fort Worth is a wise choice. 

What Millennials Want 

Millennials are changing real estate rental trends so it’s up to you as a property owner to change your marketing strategy. It’s easy to market to millennials once you understand what they want. Since they grew up in an age of rapidly changing technology and instant gratification, they are a generation of “I want it now”. Rather than go without in order to start a family early or buy a home, millennials are all about experiencing travel, career changes, and freedom for as long as possible, counting on families and stability to come later, but also as soon as they’re ready. Because they don’t want to be tied down by anything, renting is their number one choice. 

Pew Research shows that “Millennial households dominate the ranks of the nation’s renters. Last year, Millennials headed 18.4 million of the estimated 45.9 million households that rent their home.”  

Why Millennials Love Single-Family Homes

Perhaps it’s because millennials watched their parents lose their homes in the 2008 real estate market crash, or maybe they are just burdened with too much debt, but either way, the result is that they are not wanting to purchase a home, or at least prefer to put it off for the time being. Whatever their reasons for not buying property, millennials still desire the lifestyle of a home rather than an apartment. That’s why single-family rental homes are the perfect answer and they’re recently in high demand. Amenities like a backyard, safe neighborhood, privacy, and more space overall are some reasons people choose a single-family home to rent. Specialized property managers in Fort Worth are experts in the single-family home rental market and can help property owners manage them effectively. 

According to Norada’s 2020 real estate forecast, “Following the housing market decline in 2007, single-family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single-family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single-family rental units”

How to Market to Millennials

Most millennials love the idea of a single-family rental and have a clear idea of what they want it to provide for them. Most are also willing to pay more for rent in order to obtain their desired lifestyle. Some main things they may be looking for are:

  • Proximity to job
  • Flexible lease 
  • Storage space
  • Internet speed
  • Good schools
  • Amenities: pool, gym, or park nearby
  • Safe and friendly neighborhood
  • “Smart home” features
  • Washer and dryer in unit
  • Kitchen upgrades
  • Fenced yard/pet-friendly
  • Covered parking spaces

Consulting Specialized property managers in Fort Worth is a good idea for learning how to add these amenities to your property and market it well to millennials. They’ll also help you put together a lease that benefits both you and your millennial renters. This list of demands may seem like high standards for a tenant who may move out at a moment’s notice, but studies show that though millennials appreciate flexibility, they’re not flaky. 

According to a recent national renters survey, renters are committing to their rental properties long-term. The survey shows the percentage of single-family home property renters committing to their rental properties for more than 5 years is 22%, 3-5 years is 14% and those expecting to commit for at least two years is 59%. These figures show on average that 25 percent of single-family home renters plan to stay put for more than five years. This real estate rental trend impacts the Fort Worth property management through lower vacancy rates and more stable tenants.

Be Tech-Savvy

In addition, accommodating one millennial could help you get a lot of future business. Millennials highly trust online reviews and will make sure to research rental properties and their respective management to see what they can expect. If they like it, you can count on them tweeting all of their friends about it (#trending)!

Speaking of social media, another aspect of marketing to millennials is your online presence. Make sure you’re easy to find on social media and that what you’re putting on the web can be accessed on a cell phone. Include video walk-throughs of your property, as well as a list of the home’s amenities. Having an easy-to-use website with a link to an online rental application as well as a way for renters to pay rent online are crucial to marketing to this generation of tenants. If you don’t have these things readily available, they’ll quickly lose interest. 

Why Choose Specialized Property Managers in Fort Worth 

At Specialized Property Management Fort Worth, our team of property management experts are the ones to trust as real estate market trends change with the new decade. We have been advising property owners all over Fort Worth and helping them manage their rental properties effectively and efficiently for over 30 years. With a 98% customer satisfaction rating and a #1 listing out of 270 property managers, you can rest assured that your property and tenants will be well taken care of. Some of the services we offer are: 

  • No Hidden Fees
  • Faster Leasing 
  • Online Marketing
  • Effective Tenant Screening
  • Financial Peace of Mind
  • 24-Hour Support 
  • Local Expertise
  • Straightforward Communication
  • Cost-Effective Maintenance
  • Online Portal/Rent Collection

Specialized property managers in Fort Worth live and work locally so we know the current real estate rental trends and can help you reach millennials that will be great tenants. You can trust us with your property and your tenants because we’ve seen it all and have learned how to adapt to market changes. Our technology-driven processes save you time, money, and stress while making it easy for tenants to pay rent online and access online information. Let us help make your life easier and managing your property a breeze. You invest and we will take care of the rest. Contact us today to learn more about how we can help you maintain your beautiful rental property. 

Rent Rates Continue to Rise Nationally and in Fort Worth Property Management

All over the nation rent prices are climbing, with RentCafe indicating the national mid-year average at $37 more than last year, with the highest rates in Manhattan at $4,190, and Los Angeles around the $2000s and $2500s. These rates are increasing quickly, with significant changes occurring just since January 2019. Chicago and Denver are 2 of the largest renter hubs in the nation and they both increased by 4.8% and 3.6% respectively in just 6 months. A blog article from Housing Wire explains,

“RentCafé’s data shows that 88% of the cities analyzed in its report experienced a rent increase in the first half of the year. In June alone, 35% of the country’s largest 260 cities had rents that exceeded the national average, whereas only 5% of rents fell below this median.”

“In true seasonality fashion, June brings rent increases consistent with the end of the second quarter. Nationally, average rent prices reached $1,465 following a 3.2% annual increase and up 0.8% since last month — the highest monthly jump since May 2018.  Compared to last June, renters pay $45 more on average according to the latest rent survey from Yardi Matrix.”- RentCafe

Why the Rise in Rent Rate

America’s current housing crisis is causing the steady and significant rise in rent which is affecting just about everyone nationwide, including Fort Worth property management companies like Specialized Property Management. As housing prices go up, people who would have been homeowners are now finding it more affordable to rent than to buy. This has lead to an influx of potential tenants in the rental market and especially single-family homes for rent. This has also created more competition among tenants because lower-income-earning tenants are now up against higher-income-earning tenants and property owners want tenants that they know can afford the increase in rent and afford to stay for a long time. In addition to the rise in prices, there’s also been a decrease in the construction of new homes and low-income housing, leaving millennials with almost no option other than renting. According to MySmartMove,  

Millennials now make up the largest generation in history and have a large impact on the rental and housing market. Millennial workers make an average of $21.80 per hour, $5.78 lower than the national average. National rent prices are so high that millennials are spending a greater portion of their income on rent. According to RentCafe, the average millennial will spend about $93,000 on rent by the time they hit 30. This is 45% of their income going to rent between the ages of 22 and 30.”

Rent in Fort Worth Compared to National Trends

The recent increase is also true for homes and rental properties in the Dallas/Fort Worth area, but at a slower rate. Fort Worth property management companies are happy to see the increase in rent because it means happier property owners with an increase in income. The rise in rent rates also means landlords can be more selective about tenants, which can increase the value of their property, decrease turnover rate, and continue the flow of a steady income from tenants who consistently pay their rent on time. Though the overall increase in rent rates is a positive thing for property owners, the slow growth of the Dallas area is raising concern in Fort Worth. Property management companies like Specialized Property Management are always up to date on current rent trends in the area and can help you choose the best rate to charge your tenants to stay competitive and avoid vacancies. According to RentJungle

“As of April 2019, average rent for an apartment in Fort Worth, TX is $1043 which is a 0.96% increase from last year when the average rent was $1033, and a 0.77% increase from last month when the average rent was $1035. One bedroom apartments in Fort Worth rent for $893 a month on average (a 0.56% increase from last year) and two bedroom apartment rents average $1139 (a 1.76% increase from last year).”

Good News for Property Owners

Though many people fear an impending housing market crash, the present and the future contain opportunities for rental property owners and rental property management. Fort Worth may not be rising as quickly as other cities in the nation, but it is still rising at a steady rate. This rise in rent rate allows rental property owners to make more money, cover their expenses, be selective about tenants, and make their property more competitive. Just by slightly lowering your rent rates or investing a small amount of money to update your property, you can make your property more desirable. With the large demand for leased single-family homes and the relatively small availability of these homes on the market, you and your Fort Worth property management company can decide who to rent to and for how much. 

Specialized Property Management 

You can look around the neighborhood to get a feel for how much rent to charge for your property, but trusting someone with experience and a vast knowledge of rental trends in your specific area can help you get the most money while maintaining consistent tenants. Specialized Fort Worth property management company takes the stress out of owning a rental property by doing everything for you in the right way. Our services include:

  • INSPECTING: Our team ensures the rental unit is “rent-ready” with curb appeal, making recommendations where necessary.  We also conduct mid-lease inspections to ensure lease compliance and care of the property.
  • MARKETING: We aggressively advertise your rental property across dozens of websites, post an eye-catching sign on the property, and post the vacancy to our high-traffic rentals listing and Youtube channels.
  • SHOWINGS: We prepare and post quality video tours of the property and take care of live showings.
  • SCREENING: Our team at Specialized Rental Property Management Fort Worth conduct rigorous background checks on all prospective tenants 18 years and older to place the most reliable tenants.
  • SIGNING: We prepare and execute all leasing documents in accordance with Leases & Addenda promulgated by the Texas Association of Realtors.  We secure rents and place deposit funds into escrow, and provide a formal new tenant training on how to care for the property.
  • COLLECTING: We enforce the rent collections cycle with a strict, yet respectful, process that helps avoid late payments.  We then quickly deposit rent funds to your account electronically.
  • MAINTAINING: We respond quickly to your tenant needs and emergencies, handling repair requests with our cost-effective team of qualified, insured maintenance professionals.  We also conduct periodic proactive interior and exterior inspections and preventative maintenance.
  • RENEWING: Our Fort Worth property management company actively works to retain tenants longer with excellent service and perks like our Resident Club.  As we proactively renew leases, we help you avoid costly turnover.
  • MOVING: When the tenant does move on, we process notices, educate the tenant on the process for a smooth transition, conduct the walkthrough and manage deposit disbursements.
  • REPORTING: In addition to the 24/7 client portal with on-demand, detailed accounting, activity, and maintenance reports, we provide detailed monthly reports and year-end tax statements. During the leasing process, owners receive weekly updates.

What Tenants Want

This article from RentCafe explains the rise in rent across the nation in more detail, with a chart that allows you to search your city and see what the average rent is there. It also explains what renters are searching for specifically when they look for housing in Fort Worth. Property management can save you time by doing this kind of research for you.

Rentals near me have dominated online searches throughout the first half of the year. Google searches including variations of apartment types within a certain radius of a person’s location have by far the largest search volume of the first months of 2019. Data on apartment-related searches showed that, next to a desirable location, the renters’ mindset is driven by functionality and financial awareness as the key terms that round up the podium are studio (6%) and cheap (4%).”

Since most tenants are looking for smaller and cheaper, marketing your property as such or showcasing all the other reasons why it’s worth paying more for is crucial to gaining consistent tenants. With the current situation being as it is, you also need to take advantage of this landlord’s market. Rather than spend your time worrying about how to market your property and interviewing tenants, it would be wiser for you to look into how you can invest in other properties, especially smaller, more affordable ones. Let Specialized Fort Worth Property Management take complete care of your current properties in Fort Worth and keep you in business. With our customer-driven service and seven specialized guarantees, you can’t go wrong by giving us a call and seeing how we can make your life easier, earn you more money, and protect you from legal complications. With rent increasingly on the rise, there is no better time than the present to invest in real estate. Call today!

Why Single Family Homes are a Wise Investment in Fort Worth

Specialized Property Management started out over 35 years ago, and we went into the property management business with a focus on managing single-family rental properties. At that time, most rentals units were found in multifamily properties like plexes and apartment buildings. Read more

Smart Fort Worth Property Managers Attract Millennial Tenants

The Millennial generation is in the news every other day. This generation has been accused of ruining things from the 9-5 workday to bars of soap (according to a list compiled by Marketwatch). While millennials may not be ruining everyone lives, it is true that times are changing and the millennial generation is leading the pack. How should the rental housing market respond? Below, we discuss who millennials are, what they want, and how a Fort Worth property manager can help you attract millennial tenants.

Who are Millennials?

To start with, who are we talking about when we talk about millennials?

  • Young(ish): The Pew Research Center defines millennials as “those born after 1980 and the first generation to come of age in the new millennium.” Generally speaking, as of 2018 millennials are 18-38 year olds.
  • Tech-savvy: This group has seen rapid advancement in technology, and is the first to come of age in a world with access to the internet and cell phones. Many work in tech industries, and it is hard to imagine any millennials without a smartphone in hand.
  • Large: In 2016 millennials overtook baby boomers to become the largest living generation. Pew also reports millennials make up the largest age group of renters at about 18.4 million. As such, it is important that rental property managers stay up to date with why millennials are renting and what they are looking for in rental homes.

Why are Millennials Renting?

As mentioned above the millennial generation is often blamed for “ruining” industries, which is in part because they have different values than the generations before them. Millennials tend to value freedom and experiences over stability and material things. In the housing market that translates into behaviors such as picking up and moving suddenly for a job and using their savings for travel instead of a down payment on a house.  Also, the average debt of this generation is in the tens of thousands, making home ownership seem like a far-off dream to many.

What Do Millennials Want in a Rental Home?

For millennials who don’t want or are unable to buy a home, renting a single family home is the next best thing. As this generation enters their 30s, they are more likely to start a family and search for a home that is family friendly to settle down in, even if it is only for a few years until their next move. This generation also likes to have fun, so being close to amenities and transportation is especially important. Lastly, the Washington Post reports that a majority of people in their 30s own pets, meaning that they will be looking for a rental home that allows pets.

Tips for Attracting Millennials from a Fort Worth Property Manager

Now that you know a little bit about millennials, how can you go about attracting them to your rental property? With so many millennials renting, you may think attracting them is simple. However, as mentioned above, millennials have different values than previous generations. Here are a few ways an experienced Fort Worth residential property management company can help you attract millennials.

    • Use technology to your advantage in marketing. Millennials search for rental houses online. If you don’t have an online presence, it is doubtful they will ever find your property for rent. A property management company can list your house on several websites and even create a video walk-through so potential renters can view the house virtually.
    • Consider your lease terms. With many millennials desiring a “no-strings-attached” type of lifestyle, consider lease terms that will not hinder this. If you’re having trouble finding tenants for a long-term (more than one year) lease, consider offering a shorter one, possibly even a month-to-month arrangement. Your Fort Worth property manager can help you draw up a lease that will be appealing to these shorter-term renters.
    • Update your home with smart technology. If you have to make updates, consider going with the “smart” version of these updates. A smart thermostat, for example, will let your renter control the temperature remotely from their smartphone. These smart updates have the bonus of lower energy costs, and may even give you a tax-deduction (always check with your tax advisor about this perk before buying).

Why Choose Specialized Property Management Fort Worth

Your rental property business will be more successful and more lucrative, if you hire experienced property management. Specialized Property Management Fort Worth gives its clients proven rental processes that have kept up with changing times and changing tenants. When you choose to take advantage of the business expertise provided by our Fort Worth residential property management here are a few services you will receive:

  • Online Property Listings: your property will be listed on multiple websites to ensure full exposure to renters.
  • Owner and Tenant Portals: you will be able to view reports and pictures from your property at any time. Your renter will be able to pay rent and submit maintenance tickets with the same ease.
  • 24-Hour Support: when your renter has an emergency they call us, at any time of the day or night.
  • Advice from Experts: our property managers not only have years of experience with what works in property management, but they also stay up-to-date with what works now, for millennial tenants and every other generation too. Why not put that expertise to good use and make the most out of your rental investment?

To start working with a professional, experienced Fort Worth property manager today call Specialized Property Management Fort Worth.