The research results by the Pew Research Center indicate that 34.4% of renters are below 35 years old; this intriguing group, referred to as Gen-Z's and millennials, has become a generational powerhouse that can significantly impact the real estate industry. It is, therefore, important for landlords to acknowledge this new market and customize their properties to align with the needs of the younger generation. Unlike any other generation before, this new wave of renters has unique demands surrounding properties. Here are ways to tailor your properties for the new market.
As with any other business, it's important to know your target market, including what they like and their general mindset. This younger demographic doesn't know a world without technology. They have spent most of their time on their smartphones, where they can access information anywhere and anytime. So, expect that such potential clients will be more informed than other typical first-time home buyers or renters.
Considering their fast-paced lifestyles, Gen Z and millennials are very particular about where they want to live. Most of them prefer a location that's close to their place of work. They also want to live in a diverse neighborhood. You should be sure to have inclusivity as one of your core goals when building your properties.
Although most people have embraced social media, the most active users are the younger generation. Landlords who wish to reach and engage this target market effectively have to invest in creating a healthy social media presence. By using images, colors, fonts, and virtual tours, landlords get to grab the attention of any social media visitors before they physically visit the property.
Social media can also be a helpful tool for sharing testimonials from previous tenants to build trust with potential tenants. The truth is that managing social media can be overwhelming, considering all the other responsibilities that a landlord may have. However, they could invest in contracting a social media marketer to ensure their platform stays active.
The younger generation is conscious of eco-friendly and sustainable practices; they are among the most discussed topics. Landlords must, therefore, show their commitment to these values, as it has been proven to be one of the factors Gen Zs and millennials consider before supporting a brand. For example, landlords could invest in energy-efficient appliances or participate in go-green campaigns to show dedication to environmental responsibility.
This generation has also grown up in a global economic crisis era. Consequently, they place more value on affordability than additional square footage. Building the capacity of a defined area to improve the economic future and quality of life for hundreds of inhabitants should be the objective of local development. This will help reduce the worry about money among tenants.
Gen Zs and millennials have a high regard for creating memorable experiences and socializing. Landlords should create spaces that feel cozy and encourage interactions. They should also focus on creating well-designed interiors per the generation's preferences. For example, 62% of millennial home buyers desire granite or natural stone countertops. Including such features in your properties would be wise, even if that means remodeling.
Prompt communication between landlords and tenants is crucial, especially for the younger tenants with fast-paced lifestyles. Anytime a Gen Z or millennial raises a concern or enquires, they expect to hear from the landlord promptly. For example, suppose an aspiring tenant has enquired to find out information on the tenancy application process. In that case, they expect to hear from the landlord as soon as possible to start the process. That's why you should ensure the communication channels; emails, text, calls, or instant website chats, remain open throughout to allow effective communication.
New real estate trends have seen more Gen Zs and millennials looking to buy or rent a home. For landlords to stay in business, they will have to invest in learning about the new potential renters and customize properties to accommodate them. They may also absorb some of these younger people onto their managerial teams for better insight.