To keep your rental property leased, you have to first identify your local renter demographics. Single-family rental households are projected to increase by approximately eight million between 2018 and 2030, on the word of the National Multifamily Housing Council. To stay on top of this demand, property owners and managers should determine who their target market is and what they’re searching for in a rental home.
Most Likely to Rent – All Property Types
Young adults are the most likely demographic to rent a home. This is especially true in almost all markets across the country. A recent research by Harvard University’s Joint Center for Housing Studies revealed that 78 percent of all households under the age of 25 rent their homes. This is partly because many young individuals are at a time of life marked by increased mobility, more flexible employment tenure, and shifting relationships. As a result of the complexity and high cost of home ownership today, many people would be better off renting.
While young adults tend to dominate the rental market, renters of all ages are present in large numbers. According to recent research, two-thirds of those aged 25 to 30 still rent their homes, while one-third of people over 40 and one-fifth of people over 55 do not. Not everyone opts to do so, but in recent years, the number of renters has increased. Renting is a popular choice among those over the age of 50 since it removes the need for them to deal with the hassle of home maintenance or the financial concerns that come with a fluctuating housing market.
Most Likely to Rent Single-Family Homes
Obviously, people of all ages rent homes, and the age range of the most prevalent renter demographic may differ depending on one’s geographic location. It is also evident that particular types of rental properties are in higher demand in some places than others. For instance, single-family rental homes are more popular than any other types of rental properties in the West and South, whereas multifamily rental properties are more common in the East and, to a lesser extent, the Midwest.
Consequently, rental property owners need to be aware of the most in-demand types of rental property in their location, as well as the age ranges of their target market. Most people who rent a single-family home do so because they prefer more space, want a yard for their pets, or want a safe environment to grow a family. It is possible, though, that retirees and young single individuals in college towns, popular retirement communities, or other unique places would be perfect for your single-family rental property. To keep your rental property rented, you need to know what your target demographic needs and wants.
Although necessary, it can be difficult to know who your local renter demographic is, primarily if your rental property is in a distant or developing area. In such a situation, it may be beneficial to enlist a local rental market expert who can help you get your rental property plan and market it well. We at Real Property Management have the experience and skills to help you understand your target market and make sure your rental property is leased to qualified tenants. Contact your local Real Property Management office for more details.
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