The Next Generation of Renters: Attracting Millennial Customers and Tenants

According to Generational Project Group, Millennials (also know as Generation Y-ers) were born between 1980 and 2000 and comprise about 20 percent of today’s U.S. population, almost equaling the number of Baby Boomers in the nation. Collectively, Millennials have a purchasing power of $200 billion. With half of them currently in the workforce—and all under the age of 30—Millennials make prime rental candidates.

However, the generation’s differences mean you may have to rework your traditional marketing strategies in order to take advantage of this group’s renting power.

Get on the Web
Millennials are very technologically-centric, and with their faces buried in the latest gadget much of the time, property managers need to switch their ads from billboards and buses to where this group is more focused.

“They don’t look at a newspaper or a phonebook,” says Maurice Ortiz, marketing director of Apartment People, one of the largest apartment finding services in Chicago. “They’re looking through Google, MySpace and Facebook.”

Ortiz recommends property managers weave social networking into their marketing strategies. His company provides prospective tenants with virtual tours of apartments on YouTube, and always includes photos with ads.

“They’re extremely visual,” Ortiz says. “It’s not even worth advertising without nice photos because they won’t look.”

Elizabeth Kearney, president of Generational Project Group in Pleasanton, Calif., says in order for a property to be taken seriously, they need to be online and email accessible.

“[Millennials] want to be able to view the Web site and have email communication,” says Kearney, whose consultancy offers training and consulting services to companies dealing with a generational shift in their employee base. “If these things don’t exist, there’s a real question about how professional this person is in this day and age, and if they are really on top of the market.”

Market the neighborhood
Since Millennials are extremely visual, they are very much interested in the aesthetic of the neighborhood they are moving into. Millennials are known for always being on the go, and typically want places to go within their apartment’s community, so market the neighborhood—not just the property.

“The lifestyle of the neighborhood is important,” Ortiz says. “They want to know what they are going to be able to do when they’re not at home. They may give on some things, but neighborhood is not one of them.”

“I want it now!”
In order to deal with Millennials effectively, property managers must work quickly to attract a tenant. “They need it yesterday,” Ortiz says. “They Google it, look, send an email, see it, like it, rent it.”

However, Oerdrtiz admits that a Millennial’s immediate want is sometimes challenging since current tenants need at least 24-hours notice before a property can be viewed. While Millennials don’t like to wait, Ortiz says this can be an advantage if you keep them excited about a property overnight.

Offer freebies
One of the best ways to attract—and retain—Millennial renters is to offer them amenities they can’t live without.

Ortiz recommends offering complimentary Starbucks coffee in the lobby, high speed Internet or cable. In addition, property managers should consider offering a workout facility, complete with updated equipment and an area for yoga or dance. Ortiz even suggests hiring instructors to teach fitness classes. Some property managers are also offering concierge services to their tenants.

Since Millennials are very social and take advantage of spaces where they can enjoy the company of their friends, Kearney also recommends property managers provide a common area that tenants can use for parties and other social networking events.

“While you may spend more upfront, by keeping them you will probably end up saving more money,” Ortiz says.

Open lines of communication
Millennials value communication, and according to Kearney, are brought up to believe they can give their opinion freely.

“They have strong views and want them heard,” she says. “Property managers should be open and willing to communicate, and be willing to consider what’s said.”

In order to retain tenants and generate a buzz for prospective ones, Kearney suggests property managers simply ask their current tenants what could be done to make the property more attractive.

“Have a focus group,” says Kearney. “It’s the best way to find out what they want and need.” Kearney also suggests questionnaire or meetings be brief and also available online.