As a rental property owner, one of your top priorities is to lower your vacancy rate in order to maximize revenue. Sometimes, though, attracting renters can come as a challenge, especially if your focus is on a singular demographic. Widen your search range to include prospective tenants that pose the most gainful potential — Millennial and Gen Z renters.
How Millennials and Gen Z Renters Figure Into the Rental Market
The rental market has been experiencing a shift in recent years. The current landscape features a large chunk of renters in the United States aged 44 and below. Millennials have become known as Generation Rent, spending a great deal of their income renting everything from music to designer clothes. That said, it comes as no surprise that Millennials dominate the rental market.
As a rental property owner, though, you must not discount the youngest generation. The oldest members of Gen Z turn 23 this year and have already taken a sizable slice of the rental market pie. This trend is expected to continue as both demographics age up.
As the number of young renters increases, you must adapt and learn new strategies to attract Millennials and Gen Z renters. This is the only way to ensure the ever-evolving market does not leave you behind.
How to Woo Young Renters
Millennials and Gen Z tenants are trickier, and more traditional methods of marketing won’t necessarily work on them. Here are some tips you can use to attract Gen Z and Millennial renters:
1. Focus on Authenticity
Millennials and Gen Z renters are very concerned with authenticity. They value it, crave it, and seek it in every aspect of their lives, including their community. Consequently, it is important to create a marketing campaign that can spark a connection with your audience.
Emphasize what tenants can look forward to if they choose to rent your property. You can also include local artisan shops and any nearby activity centers in your listing. This will allow them to visualize their lifestyle in the neighborhood.
2. Take to Social Media
To say that social media plays a major role in the lives of Millennials and Gen Zers would be an understatement. These two generations spend a significant amount of their daily lives checking various social media platforms.
In fact, they prefer to consume content and read news online instead of through television or the newspaper. Therefore, if you want to attract Gen Z renters or Millennial renters, make sure to take advantage of social media advertising.
3. Be Tech-Forward
Another way to use technology to attract Millennial and Gen Z tenants are to incorporate it into your management scheme. Phone calls and snail mail may have served you well in the past, but the market is changing.
Young renters prefer to communicate using a digital medium. Consider an app or online portal where your tenants can file maintenance requests, pay rent, and access various services. At the very least, use email.
4. Build a Sense of Community
Millennial and Gen Z renters desire a sense of belonging. They want to connect with their neighbors and meet new people. They seek to create and participate, as evidenced by the millions of online influencers and vloggers in both generations.
Thus, if you want to entice young renters, consider hosting events, organizing projects, and creating co-working spaces that encourage sociability. This will help you form a culture built around the community.
5. Invest in Environmentally-Friendly Features
A significant trait that Millennials and Gen Zers share is a passion for the environment. Both age groups acknowledge the various environmental problems that plague the world today and advocate for a more eco-friendly lifestyle. That said, consider upgrading to energy-efficient appliances and more sustainable amenities.
If you own an apartment complex, you may also want to start a community garden. This will check off both the environmental and community aspects. Of course, these upgrades will cost you money, but they are an investment worth making.
6. Beauty Is Still Important
As a generation that grew up with social media, Gen Z renters value beauty. Younger generations like to purchase items that match their aesthetic, and that can easily apply to the homes they rent.
To appeal to this audience, make sure your rental property fits the standards of Millennials and Gen Zers. This can range from minimalist, Scandinavian design to a more industrial-inspired style. Consider an accent wall that can serve as the perfect background for their many Instagram pics.
When marketing your rental property, make sure to highlight its attractive features. Natural light is something a lot of young renters look for, especially those with careers or an interest in the visual arts. If your rental property has a window that allows for natural light, include it in your listing.
7. Keep It Affordable
A common misconception people have about Millennials is that they are bad with money. But, the truth is, they suffer from debt due to crippling student loans and a lack of lucrative job opportunities.
In fact, a survey shows that Millennials actually save more money than the previous generation. The same goes for Generation Z. Despite their age, Gen Zers understand that the economy isn’t what it used to be and that they may face large debts in the future. Because of this, they are more frugal.
As both generations worry about money, it stands to reason that rental property owners should keep their rentals affordable. Of course, that doesn’t mean charging a rate lower than what is appropriate for the rental market. It only means you shouldn’t charge sky-high rental rates just because you can.
Adaptability Is Key
The rental market will always undergo changes as new generations gain purchasing power and older generations exit. Rental property owners like you must adjust accordingly. If you want to attract Millennial and Gen Z renters, don’t be afraid to adopt new tactics and welcome innovation. It is the only way you can keep up with this ever-changing industry.
Finding tenants can be difficult without the right expertise and experience. You can make the process easier by hiring a property management company to help. Look for the best one in your area using Florida Property Management’s online directory. Our directory also lists reputable HOA management companies and real estate agents.