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. 

How a Fort Worth Property Manager Can 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.

How Arlington Rental Property Management is Changing with Millennials

According to Forbes(LINK), the rental home market is changing because of millennials. Individuals born between the early 1980s and the late 1990s are now in the midst of their careers and have money for a downpayment, yet they are choosing to rent instead of buy. This is good news for property owners and property management. Arlington landlords can use this new renting mindset to their advantage.

Why are Millennials Renting?

As Forbes(LINK) points out, Millennials are choosing to rent even when they may be in a position to buy. This lines up with the value system observed in this generation. They tend to place more importance on experiences and freedom rather than material things and stability. When you own a home, it is more difficult to move across the country for your dream job. Saving for a new roof means less money for traveling. A good Arlington rental property management team can help you market your home for this new kind of renter.

Picking Property Management Arlington Tenants Will Love

What does this mean for property management? Arlington landlords looking to appeal to the millennial generation need to know a few things. First, many millennials work for tech companies and technology is a huge part of their lives. Specialized Property Management makes your tenants lives easier with our online portal system. Tenants can log in to their portal and pay rent or submit a maintenance request. Second, marketing will look different. With many tenants moving from across the country, they may never drive by to see a For Rent sign in your front yard. Online marketing with walkthrough videos is important to reduce vacancy days and give potential tenants confidence in renting a home sight unseen. Fortunately, with an Arlington rental property management team like Specialized you get all these services and more.

Want to learn more about all the services we offer? Give Specialized a call today!

Texas Economy and Millennials Looking for Houses

Fort Worth rental property management

Fort Worth rental property management gets ready for the summer season

Texas is a popular place to be in 2016. People want to relocate to and build a business in the Lone Star state. Millennials who have postponed home-ownership won’t find the market an easier playing field this year. Fort Worth rental property management companies can see a few leases end and tenants become homeowners, but renting is still the option of choice for many professionals with a family.

Texas Economy

Even with oil crude prices down and job cuts in the energy market, the Dallas-Fort Worth area is one of the fastest-growing communities in the nation. And the Dallas area can boast being where more that a third of the houses in the state were sold during this year’s first quarter. The state continues to have annual employment growth and the unemployment rate remains below the national average. So even though the housing market growth is expected to slow down this summer, it is still strong.

Where are the Houses?

The demand for affordable housing in Texas is high this season. But the supply of homes on the market is low. A 25 increase in listings last month isn’t enough to keep up with housing demands. High demand means buyers are looking at record prices for homes. Housing prices are predicted to level out, though, which could give hope to potential buyers. Competition is strong and millennials looking to buy their first home can expect potential bidding wars and homes going for higher than their listed price.

What does this Mean for Fort Worth Rental Property Management?

Record home prices and low inventory mean that after the hot summer real estate season, some home buyers won’t have found the home purchase they were looking for. Millennials were predicted to be big home buyers in 2016. But instead of being a stampeding wave on the housing market, they will more likely slowly trickle into the market. Investment property owners can take advantage of the need for affordable housing and get their rental homes up to code and rent ready for the coming real estate season.

Specialized Specialized Property Management is the leading property management company that can help you get your rental ready for leasing. We offer professional remodel services, lease preparation, and proactive advertising so you quickly see success with your investment. With millennials take their time with buying a home, finding a comfortable home to rent is their current goal. Find out what Specialized Specialized Property Management can do for you at (www.specializedrpm.com)