Marketing Your Rental Property to Millennials Pt. 2

In Part I of this article from last month, we discussed the background of the Millennial generation, including how they conduct searches for housing, and what characteristics they look for in choosing neighborhoods to live in.  In this Part II, we will focus more on the types of amenities that the Millennial generation finds most appealing. At the end of this article, you will have an idea on how to increase your property’s rental income and reduce vacancy rates by targeting the largest rental market: Millennials.

Millennials are a generation born between 1981 and 1996 and are now between ages 25 and 40 years old.  Authors William Strauss and Neil Howe are widely credited with naming the millennials when they first “coined” the term in 1987. Around the time children born in 1982 were entering preschool, and the media were first identifying their prospective link to the impending new millennium. As they proceed on to graduating high school as class of 2000, Strauss and Howe wrote their book: “Millennials Rising: The Next Great Generation (2000).”  Millennials are the second youngest generation currently living in the United States today, and the youngest working generation: 

• G.I. Generation (1901 – 1926)

Children of the World War I generation and fighters in World War I and young during the Great Depression 

• Mature / Silent Generation (1927 - 1945)

Korean War and Vietnam War generation.  The Big-Band/Swing music generation. 

• Baby Boomer Generation (1946 – 1964)

The “me” generation and “Rock and roll” music generation.  Two subsets: (1) The “save-the-world” revolutionaries of the 1960s and 1970s; and (2) The party-hardy career climbers (Yuppies) of the 1970s and 1980s. 

• Generation X (1965 – 1980)

The “latch-key kids” who grew up street-smart, sometimes with divorced or career-driven parents. (Latch-Key came from the house key kids wore around their neck, because they would go home from school to an empty house.)  An entrepreneurial and very individualistic generation. 

• Generation Y - the “Millennials” (1981 – 2000)

a/k/a, “The 9/11 Generation” or the “Echo Boomers.” This generation brings a sharp departure from Generation X.  They are nurtured by omnipresent parents, optimistic, and focused.  They have unlimited access to information and tend to be assertive with strong views. 

• Generation Z - the “Boomlets”  (2001 – Present)

In 2006, there were a record number of births in the U.S., which far outnumbered the start of the Baby Boom generation, and the Boomlets will easily be a larger generation.  They are savvy consumers and know what they want and how to get it. They also tend to be over saturated with brands. 

Based on a research done by the First American Financial Corp 2020, in a decade’s time, millennials will be the biggest generation in America. This makes them responsible for an estimated 15 million in home renting and property sales. 

Much more than the past generations, Millennials have different requirements when making housing decisions. They are often enticed by different characteristics, new amenities, and services offered by housing providers.  Expect a prospective Millennial renter to do their research and ask a lot of questions. For in the end, they will likely be renting for a much longer period of time compared to the generations before them. 

Be Pet-Friendly 

Having a pet is a trendy possession common to millennials everywhere. About 73% of Millennials have a pet and it will affect their renting decisions. If you want to maximize your potential renter pool, make your property a pet-friendly community. This could result in an increase of $100 more per month in rental income.  It has become more and more common to allow pets due to the demand of pet-friendly housing. It can easily set you apart from your competition. Making your property pet-friendly will make it different, and millennials will be more receptive to it. If someone filters their housing search to properties that allow pets, your property just might be one of the few options meeting their criteria. Allowing pets also vastly expands the chances of being able to lease out your properties faster. 

Incorporate pet amenities such as a dog run, a pet wash, or dog walking services (if a dog park is close by) into your community. Introduce to your property managers the use of digital apps like Rover, Wag, or Barkly Pets for said dog-walking services. Also offer other move-in pet perks that could be considered unique such as a pet-treat goody bag. This will not cost much but it will make your property standout.  Millennials just love convenience and their pets after all. 

Transition to the Digital Era 

Connectivity. Millennials are extremely tech-savvy and practical; therefore, must be able to communicate quickly. One of the things you will need in order to be a successful property and cater to this particular millennial need is high speed internet access. Also make sure that your property is keeping up with the times by having an online payment and maintenance request system in place. A user-friendly Property Management Software can help you efficiently service the needs of your millennial tenants with ease. 

Hi-tech Laundry. For when you cannot provide in-unit laundry facilities, consider upgrading your laundry room machines with a mobile app like PayRange. This app allows an electronic payment option via a mobile phone.  In addition to paying, users can also choose their cycle preferences on the machine. The application notifies the user when the machine is almost done and can tell users how many machines are in use, saving a needless back and forth trip to the laundry room just to check.  No more quarters or watching money get eaten by a faulty machine, PayRange reimburses users for any monetary loss.  But do not worry for even if PayRange is enabled, the machine will still accept coins. 

Modernized Living Spaces 

Kitchen. The kitchen is known to be the heart of the home and more millennials are becoming aware of it. May it come to their healthy food lifestyle choices or enhancing their cooking/baking hobbies, Millennials are constantly documenting stuff. So it is a must to have a decent working space, new paint jobs with updated color palettes, upgraded countertops/cabinetry, and high-tech kitchen appliances. These kitchen details will definitely boost your property’s appeal to the millennials. If your millennial tenant is happy, chances are it will be posted online and they tag you. That is free advertising right there. 

Living Room and Bedroom. Comfort is what comes to mind when thinking of both living spaces. And what is more comfortable to a millennial than not having to move an inch when they want to adjust a room’s cooling/heating temperature or turning a light on? The answer is Smart Technology. This technological trend does not only give the whole living space an overall modern look and feel, but it also delivers the utmost comfort to your millennial tenants. It can be installed as phone apps and let them interact with their home. May it be a smart technology for adjusting the room’s cooling/heating temperature, operating light switches, or even  their unit’s security alarm system. 

Millennials were also raised during a time when everyone is treated as special and participation awards are more common than first place awards.  Giving any potential Millennial renter the option of adding an electric fireplace, pick an accent color for the wall, paint a chalk wall or even write Welcome Home with the renter’s name is highly regarded. 

And for your benefit as the property owner, these modern living space amenities can add to the worth of renting your property, making it a viable investment for you in generations to come. 

More on Benefits of Having Smart Technology 

Smart technology can turn devices on and off remotely from anywhere through an internet connection. It sets automation rules for intelligent home behavior that adapts to your own lifestyle and usage habits. All these while also monitoring power consumption in real time. Smart technology upgrades so-called “dumb devices” such as lamps and fans. Even home security is becoming more personalized and easily installed. A home security system in each apartment is one way to make Millennials feel more secure and safe when at home. Even traditional appliances have been integrated with smart technology, such as the refrigerator that offers a viewing application to tell users what they need to buy at the grocery store when they have forgotten their grocery list. 

The New Amenities 

Add new amenities that are relatable to the Millennials. Co-working spaces is a great add-on and can benefit the many Millennials working from home, giving them that “second living room” where they have access to Wi-Fi. It does not only help them work efficiently, but it is also a space where they can get “out of the house” without leaving the building. Such spaces can also be utilized as event spaces for tenant mixers.

With state-of-the-art technology, fitness centers that offer exercise machines with smart features that can connect mobile phones to the exercise machine’s touch screen. Such updated fitness tech can take residents on a run through the forest even when they are living in the middle of the city. And since majority of Millennials like being one with nature, this can be a virtual fix for when they can’t take the nature run they so long for. Also enhance other fitness equipment offerings like free weights or punching bags. 

People love amazing views, and Millennials love them even more. A rooftop lounge can be an incredible amenity at your property.  Having that picture-perfect view often leads to tenants entertaining guests by showing off the rooftop deck and posting pictures on social media (which can become great word-of-mouth advertising). This can be simply done by creating seating areas, a community barbeque, firepits, yoga deck, and so much more. Overall, it is a great amenity to have and a perfect location for tenant events. 

Keep in mind that Millennials want their apartment homes to be like an all-inclusive cruise and they want to be able to do a bulk of their activities in one great place. 

Update Amenities for the Lobby and Common Areas 

Consider offering a complimentary coffee bar and free Wi-Fi in the lobby or a common area of your property.   One Keurig Machine goes a long way or consider partnering with local coffee stores to offer locally sourced coffee.  Adding free Wi-Fi to common areas can offer many benefits from adding smart technology to the communal areas, to allowing tenants who work from home to work in your common areas. Or they can just hang out scrolling through the news while drinking a freshly brewed cup of coffee.  Having this in place creates a space for interaction between all your tenants, millennial or not. This in turn builds a great sense of community within your property. 

 
Millennials are also all about getting fit and healthy. For your properties with fitness rooms or areas, you can organize fitness class schedules for tenants with events like Yoga Tuesdays, Pilates Wednesdays, or Boxing Thursdays.  Hire an instructor for a couple days a week and have the classes available for your tenants. 

Upgrade the mail room to parcel service for the convenience of your tenants. Particularly your millennial tenants that mostly do majority of their shopping online. Use courier services such as Parcel Pending, Luxer, 24/7, PackCity, etc. Package theft is a huge issue in the Greater Los Angeles Area even in  the nicest neighborhoods. A parcel service ensures your residents that they have a safe alternative for package receipt. 

Look to a Better Tomorrow 

Energy efficiency is attractive to Millennials who brand themselves as eco-friendly.  Options that can appeal to these environmentally sensitive Millennials include Motion sensing lights, recycling program, energy efficient appliances, low flow toilets, water saving devices, and electric vehicle charging stations. Being as eco-conscious as they are, Millennials prefer the use of organic and recycled materials. Having such items available in your property will make it highly favorable to millennials. Also, where it is possible, use solar panels to run appliances like heaters. Millennials will go out of their way to embrace a more sustainable living environment. 

Going paperless is a huge thing for Millennials. Having an Online Tenant Portal that can process rent payments and maintenance requests (among other things) without any paperwork involved is crucial. Approximately 58% of Millennials have never written a check and most likely prefer to do cashless transactions. Most importantly, all the eco-friendly amenities and features in your property should be promoted when advertising your property for rent. 

Promote your Neighborhood in Style 

Millennials like to be where the hip and happening is taking place. Always highlight in your advertising the nearby trendy places to your property. This greatly appeals to a high-quality millennial. Mention shopping places nearby, hottest bars and restaurants, trendiest coffee shops, farmers market, parks, and entertainment places such as theaters or live music venues. Emphasize the benefits of the neighborhood where your property is located. With no doubt that this will pique a millennial’s interest in your property. 

Your property’s accessibility is also a must-have when promoting your property. Mention in ads if it’s accessible via public transport and also the walkability rating via Walk Score. This is not only for convenience but also offers eco-friendly travel options to your target millennials. 

Create a Community – It’s the Little Things That Count! 

Apartment complexes are embracing the multifamily culture by bringing tenants together through hosting events or passing out event calendars for the upcoming month. My management company hosts tenant events often by offering art events, wine tasting, live music, holiday parties, etc.  When a tenant moves in, consider giving him or her a tote bag filled with move-in essentials such as a plunger, toilet paper, paper towels, laundry detergent, spray bottle, and mug. You can even include some information about the building and the neighborhood.  And, if you want to try something that incorporates smart technology, give your tenant an electronic keychain that corresponds with an application on a smartphone to locate keys through a global positioning satellite (GPS) tracker or sound an alarm. 
 

The Conclusion 

As the workforce is witnessing the entry of more and more Millennials, it has become imperative to market your property to this demographic. If you are a property owner looking for ideas to attract more residents to rent at your building for the highest possible rent, then it is a good idea to know what Millennials want when renting an apartment.  But, since you have been prepping your apartments for the older generations, attracting Millennials will require some change.  We are not trying to become hotels, but perhaps using some things from the hospitality industry will satisfy some of these emerging trends. 

About the Author:

Kari Negri is the Chief Executive Officer of Sky Property Management and is a member of the Board of Directors of the Apartment Association of Greater Los Angeles. For questions, you can reach Kari at Kari@SKYprop.LA. 

photo resources accredited to:

<a href="http://www.freepik.com">Designed by vectorjuice / Freepik</a>; <a href="https://www.freepik.com/photos/business">Business photo created by rawpixel.com - www.freepik.com</a>