Taking a look inside the Millennial mind

Taking a look inside the Millennial mind.

Millennial’s are unlike any other generation of people. They are technologically savvy, trendsetters, globetrotters, innovative; they redefine the world around them. Born between 1980 and 2000, they are the 20th century’s last generation, and the most digitally advanced. Today’s Millennials include young adults in their 20’s and 30’s, many of whom have successful careers, some are married and raising kids, and they either own a home or are looking to rent one.

There are multiple stereotypes that surround them when it comes to their roles in the property market. Because they are a young generation, many have not saved up enough, or are willing to make the sacrifices necessary to save up funds to purchase a home; which makes them a prime target for the lettings and rental market. Delloitte’s Touche Tohmatsu conducted a survey on Millennials from 29 different countries and found that when it comes to the workplace, Millennials in general, only plan to stay in one job for three years or less before turning 30. Fourty-four percent said that if they were given the choice, they would leave their current employers in the next year and a half. [1] So, you may be wondering, where does this tie into London’s lettings market? The Millennial generation matters to the rental market because they represent a huge percentage of the current population choosing to rent a home versus purchasing one. This trend probably will not be changing anytime soon, especially with the effects that Brexit has had on London’s property market. The choice to rent over buy no longer has the stigma surrounding it that it once did. Millennials need the flexibility that renting can give them when starting out in a career. From a financial standpoint, there are those who would rather invest a large amount of their savings into the stock market rather than a property (where the current rate of capital appreciation is questionably low). The accumulated student loans most Millennials and graduates of this generation have acquired, also makes renting exceptionally more attractive. The likelihood of financing something as large as a home while they are already situated with debt appeals to them less as a group. Its unlikely this trend will change anytime soon. Landlords who do the proper research and cater their properties to the needs of the Millennial generation will likely see fewer vacancies.

Something else landlords need to consider when marketing their properties to Millennials is that the majority will trade square footage for location and connectivity. Also, older tenants with families are looking for roomier units with increased level of conveniences. Many young people look for a healthy balance between work and play. They are looking for a place to live that allows for easy access to coffee shops, bars, nightclubs, sports arenas and hip restaurants. When constructing marketing material, landlords can include links to nearby entertainment venues, which can make it easier for the tenants to envision themselves there. [2]

The new “smart home” technology and applications emerging into the consumer market rank high among this generation. This type of technology has the opportunity to enhance the resident experience, create operating efficiencies for landlords and reduce the environmental impact of homes. Marketing research shows that tenants are far more likely to rent from a landlord who has provided the option of paying rent digitally, or having a mobile phone application to track packages. [3]
Landlords should feel enthusiastic to have such a large generation who are greatly attracted to the rental market. They need to pay attention and stay up to date with what these young professionals are looking for in order to beat out the competition. If you can make adjustments to your rental properties that are attractive to Millennials, you are likely to get a larger tenant pool from that demographic to choose from.


Sources:

1.https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html
2.http://www.rentprep.com/apartment-marketing/attracting-millennials-rental-property/
3.http://www.independent.co.uk/money/how-technology-could-revolutionise-the-future-of-renting-smart-meter-landlord-bills-a7182306.html