Larry Arth blog
As a real estate investor and landlord myself I understand that tenants are the pillars of our business.
Working with hundreds of investors, I carry a high level of interest in these tenants who represent our customer base. I trust that you, as landlords and diligent investors, do as well.
With the importance of knowing exactly who your customers are, I have done much research such as the post, Why Millennials are important to landlords and the five things you need to know.
There is another group important to landlords and investors — the aging parents of the Millennials, the Baby Boomers.
Now that the young adults who have been living with their parents have finally flown the coop, their parents (the Baby Boomers) are selling their homes and downsizing.
An interesting and unforeseen event has taken place. College towns are attracting both Millennial renters and the Baby Boomer renters alike.
Back in the ‘50s, ‘60s and ‘70s, the aging populations would stay in their homes and eventually gravitate to retirement communities. Today, they want to be tied down less and to enjoy the good life. Like the Millennials, they want to be surrounded by activities, and college towns provide these activities.
11 things Baby Boomers want and landlords and real estate investors need to know
- Retirees want smaller communities in areas where cost of living is cheaper.
- They enjoy the cultural offerings, such as ballet or museums.
- Walkability scores win over this crowd. They want to be within walking distance to many activities.
- They love to play golf, so it should be near if not within the community.
- Fine dining and higher-end restaurants should be close.
- They want low-care or maintenance-free living environments.
- 50 percent are renting single-family homes with all maintenance and yard care services included.
- When living in a multifamily unit there should be a community room for social gathering.
- They want two- and three-bedroom units for an office or visiting children.
- Higher-end finishes in kitchens and baths.
- They have a low tolerance level for things that do not work right.
What landlords need to know about renting to Baby Boomers
While you may use similar methods to rent to Boomers that you have used in the past to attract and get good tenants, a large distinction is the changing technology.
A growing number of Boomers are tech-savvy.
Boomers also start their search online, but unlike their Millennial children they do not care about online applications. But they want to look at a website to start their search. Remember landlords, the key to capturing the Baby Boomers online is to make them feel welcome.
They want to see pictures of not just young adults, but they also want to see Boomers like themselves having fun.
Knowing what their hot buttons are, such as the 11 items listed above, you will be able to create better marketing to attract them.
Good, helpful information about the attributes your rental provides and how it matches their desired lifestyle will win this crowd over. More important than the features your rental offers, you will win them over by selling the benefits of the property.
A growing rental segment landlords need to watch
Baby Boomers moving into uptown districts surprised most everyone. Builders are actually planning future developments with them in mind.
Both the multifamily builders as well as the single-family builders have all discovered a growing market segment in Baby Boomer rentals and have devoted millions to creating new construction that caters to their desires. With their Millennial children having similar interest this is a venture they feel confident will pay off with sustainability.
A study from the Joint Center for Housing estimates 2.2 million seniors will actually be entering the rental market over the next eight years.
Further study estimates 50 % of them will rent single-family homes, a finding that excites most of my clients.
Fueled by the desire to be less tied down to responsibilities of maintaining a home, this group of people likes the comforts of renting. The similarities of Millennials’ wants and Baby Boomers’ wants are creating quite a stir.
Such a different age group with such a similar set of wants within their living environment creates a large demand for age –neutral amenities. A post written by an editor from a residential construction group will give you further insights on conquering the age divide.
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