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What an aging baby boomer population means to Bay Area rental property owners

Our previous articles were devoted to attracting and retaining tech-savvy Millennial renters who have distinct lifestyle preferences and a demand for amenities and high-end conveniences. Now, we transition to a growing number of seniors that are trading home ownership for rental life.

The rent-or-buy dilemma is more commonly associated with Millennials, not people nearing retirement, but this conventional wisdom is being turned on its head.

In fact, many downsizing baby boomers are choosing to rent, either out of necessity when they cannot find a suitable place to buy, or because it’s a financially savvy decision. Aside from repair costs, condo fees and other expenses, the allure of flexibility and shorter commutes are driving golden homeowners into the rental market, and the numbers are telling.

While a majority of homeowners age 55+ plan to stay in their homes during retirement, according to a 2016 Freddie Mac survey, what about those that plan to move? One in five say they will sell their home and buy another one, yet one in ten intend to sell their home and rent when they move.

We note that baby boomers are the wealthiest and one-time largest generation in U.S. history. Given their deep pockets, seniors area a lucrative demographic for Bay Area rental property owners.

Getting beyond the raw numbers

Clearly, the dramatic growth of seniors entering the rental market will require housing and community adaptations. With vaster financial resources at their disposal than younger renters, they can afford higher end units and they expect rental property owners to deliver on that.

Seniors have an affinity for single-level floor plans and proximity to transit hubs. They value curb appeal when shopping for their “right-sized” apartment and put a premium on security measures. Spaces for entertainment, recreation and socialization also in demand.

Rental property owners should also understand the nuances in how seniors use social media and adjust their marketing efforts accordingly. We will delve deeper on pulling in this age group in future posts — be sure to subscribe to stay in the know.

Parting thoughts

At Bay Property Group, finding the most suitable tenants and maintaining those relationships are among our top priorities and just one skill set we have honed over many years of protecting and enhancing the value of your rental investment in Oakland, San Francisco and throughout the Bay Area. To explore our comprehensive suite of property management services designed to provide landlords a seamless rental experience, get in touch.

Speaking to millennial renters on their own terms

Bay Property Group is constantly innovating — pushing forward to better connect your rental property with the right tenants and employing technology to automate the relationship.

In our many years of managing rental properties throughout the Bay Area, our core competency continues to be protecting the investments of property owners and managing landlord-tenant relationships. Although these relationships will always be at the underpinning of what we do at Bay Property Group, the methods and tools we use to forge and maintain those bonds have evolved with modern ways renters and landlords exchange information.

This is especially true when it comes to residents who are millennials.

Also known as Generation Y or the Net Generation, this demographic cohort directly follows Generation X and while the term is loosely defined, millennials are usually considered to be born around the turn of the 21st century.

A savvy bunch

Few among this age group can recall a pre-Internet era and most have the net within arm’s reach. By and large, they don’t like making a phone call or writing a paper check to get things done and prefer an app, a mobile website, texting, Snapshot or a multiplicity of other means to achieve a digital component in most orbits of their lives.

Their virtual world extends to apartment hunting, paying their rent and submitting maintenance tickets, forcing rental property owners to accommodate this highly informed group — landlords that stubbornly cling to the old way of doing things may soon be left to the wayside.

With droves of young professionals seeking jobs, the Bay Area naturally has rampant millennialism. According to at least one account, San Francisco has cracked into the top three cities most friendly to residents between the ages of 25 and 34, with Berkeley and Sunnyvale not far behind.

With the average cost of a home going for seven-figures in many cities, this generation is willing to trade the American dream of home ownership for employment, the thrills of city life, and more endearing aspects of our region.

Millennials are a driving force in the rental market

The Bay Area is a key hub for the millennial urbanite and a driving force in the rental market.

According to population projections from the U.S. Census Bureau, Millennials are on the cusp of surpassing Baby Boomers as the largest living adult generation. Cerebral types can read more about the forces behind the demographic shift here, but we’ll move onto how the millennial generation is shaking up the future of the property management industry in the San Francisco Bay Area and beyond.

Cities throughout the Bay Area are telling dual narratives: the economy is thriving but residents are struggling to afford their lifestyles. Staring at the highest home prices in the nation and saddled with debt, millennials still embrace the American dream of home ownership, but many have to defer that investment until later in life.

Aside from the financial challenges, lifestyle preferences have contributed to rental demand among young people — unlike their parents and grandparents, many millennials are more comfortable paying rent, rather than committing to a huge mortgage.

This multiplicity of factors has led to a large pool of Bay Area millennials in the rental market, leaving investment rental property owners trying to figure out how to attract and maintain the newest generation of spending power. Bay Property Group can help you crack the code.

Reflecting their demand for amenities, millennials seek housing with high-end conveniences. Bay Area landlords who can accommodate these preferences will undoubtedly be successful.

A study by the National Multifamily Housing Council and real estate consulting firm Kingsley Associates discovered that fitness centers, outdoor recreational facilities, barbecue grill areas and community WiFi were among the most highly prized amenities. Having access to quality common areas and co-working spaces is also paramount to this age group.

Using technology to attract and maintain millennials

It should go without saying that technology is one of the defining characters of this age group. Most Bay Area properties and their properties managers maintain an online presence to advertise their apartment listings, but many are only beginning to grasp the importance of online and mobile capabilities. Staying connected with millennials 24/7 across multiple platforms and social media is critical for the success of rental property owners looking to get in front of this tech-savvy crowd.

Millennial rental demand + technology = mobile property management solutions

Bay Property Group helps Bay Area landlords take a multi-pronged digital approach.

Communicating with residents

  • Send automated and customized messages by text or email for important events such as lease renewals and payment reminders
  • Deliver targeted emergency notifications to residents with a simple click of a button

Managing payments

  • Provide residents with easy and convenient access to make rent payments
  • Accept growing payment types such as debit card, credit card, and ACH
  • Deliver automatic payment reminders via text or email
  • Reduce or eliminate use of costly money orders

Improving Maintenance Requests

  • Allow residents to submit fast and simple maintenance requests through mobile devices — even attaching a picture with the request
  • Enable residents to track their maintenance history online or through a mobile device.

Surveying residents and gaining insights

  • Leverage event-driven surveys to quickly and easily gauge resident satisfaction
  • Use data to improve online reputation, reduce turnover, and improve occupancy

Millennial demand for apartments has a long runway into the future and Bay Property Group can help you attract and retain this undeserved demographic.

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