Keeping Up With the Millennials- How Landlords Can Stay Relevant.
Just this year, Bill Nye the Science Guy made a bold statement saying that the “greatest generation” has arrived. But have you heard of them? At 75.4 million strong, they are now the largest living generation in the US.
Born between 1982 and 1995, Millennials (also known as Generation Y) are around the ages of 16-35 years old. A generation of “digital natives” (those who have grown up with technology and social media), Millennials are diverse, as well as the most educated generation up to this point.
According to The Demand Institute, a research firm focused on consumer demand, Millennials will spend over $600 billion on rent within the next four years. Their purchasing power is expected to increase rapidly, with an expected $1.4 trillion in disposable income by the year 2020 (socialmediatoday.com). They are one of the main components in the changes we see in the housing industry, and will continue to be for years to come.
With the future in mind, it should come as no surprise that building owners, landlords, and property management companies are working hard on cracking the code on what amenities Millennials want when renting. According to Mike Scott of Dupre + Scott Apartment Advisors, Seattle “will add 125,500 jobs between now and the end of 2020.” This translates into a demand of 37,500 new multi-family rental units in the Greater Seattle Area.
Just in the last two years, we have already seen an increase of Millennial-targeted luxury rental buildings that offer high-end conveniences. Common amenities in these luxury apartment buildings include high-end rooftop decks, pet-friendly options, bicycle repair and storage rooms, shared co-working spaces, and tech-focused lobbies.
On the other hand, what about the apartment buildings that don’t fall under the umbrella of new development? How can local apartment building owners appeal to “the greatest generation” and better position their older apartments to remain competitive in light of all the newly constructed units?
To answer these questions, here are some of the top upgrades any landlord can make to appeal to the Millennial generation:
Get OnlineDid you know that most Millennials don’t own a checkbook? They prefer to receive electronic bank statements, use digital coupons, and pay their bills online. Consider investing in an online portal such as Activebuilding.com, which can make your building very appealing to Millennials. A portal will allow your tenants to pay rent, sign up for utilities, submit service requests, and engage with their community — all online. Talk about convenience!
Got Wi-Fi?Whether a building has been around for a while or is newly developed, a top priority for Millennials when searching for an apartment is Wi-Fi and the internet. Millennials desire to be constantly connected to the outside world, and if they can’t find it at your building, they will go elsewhere. Websites like WifiApartments.com will install Wi-Fi in your building for free with no long term contract, for as little as $3.00 per unit. While a strong internet connection may not be the sole reason someone moves in to your apartment building, a weak connection could definitely be the reason they move out.
Reconsider you Anti-Fido PolicyIn Seattle and in many other cities, a dog is not just a pet, it’s family. Just last year, Forbes Magazine examined pet friendly rentals in the top 25 markets, and determined that Seattle’s pet friendly rental market is the second best in the US. The article highlights that 29% of Seattle’s pet friendly apartments allow small dogs, with only 2% allowing large dogs. Seattle pet friendly tenants can expect to pay roughly $25 in pet rent monthly, and $400 in pet deposits and fees.
In 2013, The Seattle Times showed that Seattleites have more dogs than children (roughly 75% have pets.) This means that pet owners are spending roughly $1,379 on their pets per household annually. If you don’t currently offer any pet perks, not to worry. Buildings that don’t offer “pawdicures” (yes, pet pedicures) or currently have a dog park could benefit by advertising the closest park to your building and providing trash bins/doggie bags along the way.
Many landlords have reported that dog washing stations are the most used amenity in their building. Instead of bathing a dog once a season, many pet owners now groom their pet every two to six weeks, or as often as needed. Dog washing stations can be integrated into a property designating an area outside the building to wash Fido, or by creating a space within the laundry room where there might be extra room.
Other honorable mentions include:>Creating a secured bicycle room that offers a work station.
>Creating a common space where the apartment community can mingle.
>Offering a car charging station, or setting up a car sharing program.
With a total of approximately 4,279 new apartments having been added to Seattle’s local inventory in 2015 (Yardi Matrix Data), there is serious value in reaching out to one of the largest generations in history.
To sum it up, Millennial author David Burstein said it best, “Understanding Millennials isn’t just about understanding young people, it’s about understanding the future.”