Rental Market Demand Trends in 2020
When you're a property manager, It's helpful to understand your target market. Knowledge of the rental market in your area can help you employ the right marketing strategies to fill your units and also prepare for anything that would require some modifications in how you run your business.
What are some notable demand trends in the rental market of which property managers should be aware?
People Are Renting Later in Life
It's assumed that those who rent are more likely to be in the younger demographic. After all, the younger generation may just be fresh out of college, may have just started their career, and have just begun paying off their student debt. They may not have a whole lot of savings built up just yet, making it tough for them to come up with a down payment for a home. Their income may not be sizeable enough just yet to afford a mortgage.
For these reasons, renting has historically been a more feasible option for young adults. However, there's a shift happening in the average age of renters. It appears that people in older age brackets are renting more now than ever before.
With home prices rising more quickly than wages are rising, more and more people are renting later on in life. This trend means that property managers may want to consider targeting this older demographic appropriately in their marketing messaging.
Renting Single-Family Homes Is Increasingly Popular
Millennials are getting into the housing market later in life, but still need a place to live. Many of them are starting and raising families even before they make their first home purchase. However, they still seek a place that offers enough space to raise a family.
Thus, renting single-family homes is becoming increasingly popular. Home ownership rates in the US are very low, especially when compared to previous decades. That said, many people still want to live in single-family homes that offer them the space and lifestyle they want, and many are renting these types of dwellings long before they decide to buy.
Property managers can leverage this trend to market larger residential spaces to Millennials as an alternative to single-family homes. Emphasizing the amenities that come with being part of a multi-family residential community may be a smart move to target Millennials.
Providing Personalized Service Is Important
Renter retention is a huge deal for property managers, as it takes a whole lot of money, time, and effort to continuously fill vacancies. Considering this, it's important for property managers to provide more customized service for their residents to keep them happy, satisfied, and pleased with what they're paying for every month. That's where understanding your target market comes in very handy.
Sophisticated residents expect a lot from their homes and those who run them. Investing in some amenities and offerings that can enhance their living experience can be a great way to keep satisfaction levels high and turnover rates low.
For instance, having on-site premium laundry services installed for residents is a great example of a top-notch amenity that residents will appreciate.
Tide Cleaners can provide such services. All property managers need to do is apply to have lockers installed on-site and let Tide Cleaners take over residents' laundry and dry cleaning. It's a convenient, high-end service that will delight residents and your staff as well.