The rental market has taken an interesting twist that should affect how to move forward when marketing your property. Traditional renters are a thing of the past. Continue reading to find out the next big thing you'll need to consider to fill your property and keep it that way.
The saturation of new rental properties into the rental market are leaving an unexpected gap in existing properties at a time when renting is at an all time high. A new approach to attracting and keeping non-traditional renters should be on top of your marketing agenda.
Home prices are at the highest peak since 2011. There are currently 82 million people classified as baby boomers and many are opting to sell their homes for top dollar in this market. Saturation of rental properties can, in part, be attributed to the surge in 55+ communities and assisted living facilities. These properties are enticing to this genre because home maintenance and upkeep are no longer a concern along with the independence to travel.
In addition to the rising home worth, there has been a four time increase in the mortgage interest rate since 2018. This in turn is causing properties to stay on the market longer. People who are currently renting find it difficult to budget for the increase in mortgage payments due to the higher interest rates.
Millennials are entering the age to start purchasing homes, yet have the lowest home ownership of all the generations to date, coming in 8.4% lower than Generation X at the same stage of life. Many prefer to rent as they have lower responsibility requirements and higher student loan debt than their predecessors. Another factor is location, location, location. They are more likely to rent in an area they want to be in rather than owning a home somewhere they can afford.
By defining who you want to attract to your properties will help you focus on the needs of that genre. Focus on services directed to the preferences of that individual group and you will find higher retention rates as well.