Why Renting Homes Has Increased in Demand
The New Popularity with Renting
It seems as if the mortgage crisis not only saw a drop in home value, but resulted in individual preferences leaning towards the desire to rent versus own a home. What use to be considered one of the first milestones of a growing family, now demonstrates consumers ever changing mentalities towards home buying.
Rental Industry Statistics
With this changing landscape, recent times have shown a decrease in apartment vacancy rates from 8% to 5.6% showing where renters are heading towards first. Across the nation, a 17.5% increase in renting has been seen over a five year period although specific cities such as Phoenix, Las Vegas, San Antonio, Orange County, and Austin have seen increases ranging from 40-70% in rentals. Due to the changing industry, rental prices have increased 2.5% overall.
Impact of Foreclosures
The largest impact foreclosures have contributed to the rental industry is the loss in consumer confidence. Following the crisis, the percentage of Americans who considered home buying as a safe investment fell from 83% to 66%. Additionally, an estimated 3 million former homeowners who lost their homes will become renters.
Overall, the housing collapse has contributed to a new breed of consumer; those that thrive on frugality and valuing financial security over luxury. This has resulted in 83% of consumers claiming the economy as their cause for becoming more cost-conscious and 52% of the general population rating themselves as frugal.
Profile of the New Renter
The profile of the new renter consists of adults under the age of 35 and least likely to become a homeowners. This accounts for majority of millennial’s.
Follow these 5 tips to help attract Gen Y renters and make your property stand out from the rest.
1. List your rental online.
Millenials typically search for property online so take advantage of listing on sites such as Craigslist, Rent.com, and other online portals.
2. Include Wi-Fi in the rent.
Make Wi-Fi a part of your amenities package. This will give the renter one less headache to worry about setting up.
3. Make leasing digital.
Millenials do not like paper. Offer an online application and collect application fees with a credit card with an online transaction.
4. Rethink communal areas.
Think about providing renters with some form of inexpensive studio space for arts and crafts, an attractive internet café, and other services that cater to their lifestyle.
5. Offer online payment options.
Having paperless payments and allowing tenants to pay online can score you a ton of points. Plus it will save you time and ease receiving your rent even sooner than traditional methods.
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