Multifamily Apartments & The Future of Property Management

?In the quicksilver world of multifamily housing, there are some key trends that have been consistently appearing year to year. Being aware of such things will help you enter the future prepared to face what’s to come. From?residential?lockers?to smart home technology, we’ll help you review and prepare for some of the changes that are shifting the market.

Shifting Renter Demographics

Before we dive into trends, it’s essential to understand your renter demographics. Unsurprisingly, the wants and needs of a younger generation will differ greatly from those of an older one. This is of particular importance since millennials will soon pass up Baby Boomers as the largest adult living population. In addition, this new generation is far more likely to rent and to rent longer than their older counterparts.?According to Rentcafe:

Millennials pay a whopping $92,600 in total rent by the time they turn 30, more than what their Baby Boomer parents paid by the time they hit the same age. It seems that Millennials do put a massive amount of money into renting, but the numbers also show that their total median income is the highest among generations, earning about $206,600 in 8 years. However, they spend 45% of this income on rent between the ages of 22 and 30, which is more than the recommended 30%. In fact, none of the two previous generations managed to keep the rent burden under 30% with Gen Xers witnessing a rent burden of 41% and Baby Boomers of 36%.

In short, a significant plurality of young people has given up on the idea that you should buy a home and start creating equity as soon as you have the money to do so. Instead, they’re waiting longer and longer to do so. Reasons for this include:

·????????Desire for flexibility and mobility?– Most millennials will have multiple jobs by the time they hit 30. They do not want to be tied down to a specific place or location.

·????????Doubt in the housing market?– A large percentage of this demographic witnessed their parents take massive hits during the 2008 housing crisis and question whether or not it actually is a solid investment.

·????????Rising costs?– Especially in cities, where large percentages of young people tend to flock to, the costs of owning a home are exorbitantly expensive in many of their views.

Millennials plan on renting longer than ever. And soon, they will become your most common rental profile, if they haven’t already. With this in mind, it’s important that you tailor your rental properties to their wants and needs in order to entice them into renting one of your units.

Stepping Into The Future

The future of property management for multifamily housing is a bright one. So, although customers may have rising demands and expectations, the good news is that there are simple actions you can take to make your rental property more inviting and make managing it easier. Whether that be adding smart lockers or going green, by understanding your renter demographics, wants, and needs, property owners like yourself, will be able to respond to market shifts with alacrity. By arming yourself with this knowledge of apartment trends, you will be able to equip yourself with?property management tools?that will help you succeed.

Courtesy: Parcel Pending

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