Renting to Millennials
As a property owner looking to rent, knowing your target market is important. In some cases, you may even want to isolate a segment of the population in order to better target your marketing attempts.
Millennials are one of the most important populations that property owners need to focus on. Born between 1984 and 1994, these individuals are now between the ages of 25 and 40, which means that they make up a large portion of potential renters.
If you are looking to rent specifically to the millennial age group, here is what you need to know from Arizona property management experts.
Why Age Groups?
Grouping your consumers by age is a common marketing technique because it is assumed that people of an approximately common age will have the same general goals, knowledge, and even preferences in communication. For instance, if you are looking to target older generations, you will want to gear your advertising towards retirement and include television and local newspapers.
Millennials grew up in a world dependent on technology. For that reason, your younger renters may expect things like the ability to pay their rent online or to email maintenance when they need help.
The Downside of Grouping by Age
While grouping people by age is common, this practice also presents several problems. Chief among these is the fact that age groups are a generalization and not everyone within a given age group is going to have the same goals, lifestyle, income, or even level of maturity. Assuming that someone is responsible, or irresponsible, simply due to their age is short-sighted, and can leave you with undesirable tenants.
Who are Millennials?
Millennials are defined as the generation born between 1980 and 1994. While this generation has statistically married and started families later than previous generations, many are now beginning to do so. For that reason, they may be looking to rent single-family homes in cases where buying does not seem affordable or practical. In fact, this generation is known to value "access over ownership." As a whole, they've opted to use rideshare programs over buying a car and renting homes rather than buying in order to save money and enjoy other benefits.
How to Market to Millennials
When it comes to marketing, millennials value honesty, transparency, and a rapid response time. Having grown up during the development of technology and social media, millennials are well accustomed to technology and are often more comfortable with digital marketing compared to their senior counterparts. In fact, social media is among the top trending ways to reach both millennials and Gen Z.
Pricing for Millennials: Millennials have lived through several historic economic downturns. As a result, they tend to be frugal and are unlikely to pay more for something if it can be found for less. In terms of housing, this means that you will want to price match other renters in your area who happen to offer similar amenities.
Millennials and Location: Arizona property management experts know that location is often a major part of marketing a rental property but, when it comes to millennials, locations may vary. While single millennials prefer urban areas and a shorter commute, older millennials may prefer the suburbs. Community is important to millennials so, if you are renting in a neighborhood where block parties are common and where everyone knows each other, you should definitely include that in your marketing.
Amenities That Appeal to Millennials: According to market research, millennials definitely want amenities in their home. Some of the most popular amenities include trash compactors, built-in kitchen seating, exercise rooms, and wet bars. Other popular amenities include back-yards, central islands, and whirlpool tubs.
When it comes to multi-family housing, millennials also enjoy having exercise rooms on the premises. They often want washers and dryers, bike storage, and rideshare pickup areas.
Keep in mind that, just because your property does not have these amenities does not mean that it won't appeal to some millennials. In fact, other trends show that millennials are willing to accept fewer amenities and less square footage if it means that they can save on the rental price. After all, while some millennials prefer to rent to avoid the burdens of homeownership, others do so because it is the economical choice at this point in their lives.
Again, this does not mean that every millennial renter will expect a whirlpool tub, or that every millennial renter is willing to settle for lower square footage. In fact, when buying homes, millennials may prefer square footage over amenities.
Why Hire Help When Marketing to Millennials
Whether you are marketing to millennials or any other generation, the details can be overwhelming. Between social media and ad campaigns, verbiage, and making applications conveniently accessible, millennial marketing can be a challenge for anyone who is not experienced in marketing. Likewise, it’s time-consuming.
Fortunately, a good Arizona property management company has the tools, know-how, and time to promote your property to a millennial audience.
Property Managers Know How to Market: Property managers make it their business to keep up with the latest marketing trends. And, since millennials are nowhere near new to the rental market, any experienced property manager will know how to market to millennials. The goal of the property manager, after all, is to have the unit filled by a responsible tenant who is able to commit to a lease.
They Know the Area: Arizona property management takes the time to do painstaking market research before putting a property on the rental market, which means that they are more likely to identify the best age group and the best tactics for renting your property.
For more information and a free consultation, call us today!