Are you an investor with a property in Melbourne, or are you on the hunt for a new home to put on the market as a rental? Whichever category you fall into, you should have a strategy in place to attract new tenants. The vacancy rate in Melbourne is currently 2.5 per cent, according to the Real Estate Institute of Victoria (REIV). When you buy a new rental home, you don’t want it to be left untenanted for months and months while you pay off the mortgage out of your own pocket.
One particular group of people that many landlords haven’t specifically tapped into is millennials. These are people who were born in the late 80s and 90s. This group is now at the age where they will be either starting professional careers, or at least a few years in – perfect candidates for your Melbourne rental, right?
But how do you attract them to choose your property?
1) Make sure you’re connected
Your own home is likely connected to the internet – in fact, the connection is probably great. However, only 82 per cent of rentals in Australia are connected to the world wide web, according to the McCrindle Renter of the Future report from 2015.
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Some millennials are choosing to work from home more and more, as stated by a Forbes article from December 2013, so having a sound internet connection will make their home office much more functional. What’s more, 32 per cent of millennials in the McCrindle survey said that the time it takes to sort out the internet connection is one of the most frustrating parts of moving house.
2) Make sure you provide parking
If you’re buying on a busy street, make sure you have at least a driveway, if not a garage.
The McCrindle research also pointed out that 38 per cent of renters wanted allocated parking spaces as a part of their tenancy. If you’re buying on a busy street, make sure you have at least a driveway, if not a garage included. If you’re buying an apartment, you might get one or two allocated spaces included in your purchase. If not, you might be limiting your potential tenant base.
3) Buy to suit the market
In the American rental market, one-bedroom studio apartments make up more than half of the total rental apartment landscape, as reported by Building Solutions. Only 22 per cent of the Australian rental market is apartments, as stated by McCrindle, but it’s still worth noting what sort of home your preferred tenant pool would prefer.
If you like the idea of having a family in your home, buy a property that’s big enough to suit.
4) Make use of social media
Due to the level of connectivity in the millennial generation, it’s vital that you use social media to market your rental property as much as possible. You don’t have to do this all yourself, but when choosing a property manager, for example, take into account whether or not they have a strong social media presence. If they do not, it could cost you.
Further, make sure you give them facts instead of fluffy descriptions, says Building Solutions. Millennials want to feel like they’re making a decision based on solid information, and that they aren’t just diving into something because of a feeling.
5) Let there be pets!
The second highest scoring factor that encourages renters to choose one property over another is the ability to bring their pets with them, according to McCrindle. Find a rental property that has a big yard, or tough carpets that won’t be destroyed by paws and claws, and your potential tenant pool will be much larger.
Millennials are an important part of modern society, and you could make your rental property far more attractive to this group with these five strategies.