“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.
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.