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How Suitable Property Management can Attract Millennials

When the property is located near college or universities, property management should focus their marketing efforts in attracting the millennial crowd. Each year there are many young renters, leaving their campus environment and looking for a home. Your property could be ideally suited for the Gen Y crowd, but marketing with the right content and tone is essential to capitalize on this demographic. For this, it is essential to know the trends prevalent amongst millennials and their preferences. Here are some tips that will work best.

 

The Right Channel and Tone

 

Majority of millennial crowd hate ads, and prefer interacting. Therefore, social media should be the main channel for informing and involving Millennials. Facebook and Twitter being the two main platforms used by adults, marketing efforts should mainly focus on these two. Secondly, different social media websites appeal to different demographics.

 

For instance, LinkedIn is most used by graduates and people with higher degrees, whereas, Pinterest is preferred mostly by women. Instagram is also slowly catching up and it is used mostly by adults and young people in urban areas. These various platforms can be used to show millennials how they can benefit from the community or how it could provide a specific solution. While interacting on social platforms, focus on key aspects that drive millennials such as sharing, diversity, discovery, passion, and happiness.

 

Authentic and Creative Engagement

 

Being skeptical of ads, property management needs to connect with the millennial crowd through authentic and creative engagement. Here are some tips for effectively engaging their attention.

 

Customization

 

Offer products that can be customized to their preferences and economics. For instance, offer a base package that covers only basic living amenities, and provide additional packages such as high-speed Internet, cable connection for entertainment, gym membership, and so on. When you offer customization, you can attract a much wider section of the millennial crowd.

 

Freebies

 

Everyone likes something that is offered free as an incentive. Collaborate with businesses in the immediate area. Ask them for gift cards and discount coupons, which can be distributed amongst new tenants. This way, businesses find a way to advertise their products, and property management can provide freebies without incurring any costs.

 

Handling Negative Reviews

 

Almost all millenials trust reviews, which have some percentage of negative comments. In fact, when they do not see any negative feedback they feel the review might be fake or censored. Therefore, some degree of negative comments are not that terrible; however, property management should make sure to respond to these comments, and offer their side of the story. Nevertheless, it would not be wise to get into a war of words with people who delight in posting such comments.

 

They do not have to be professional, whereas you do.

 

Improved Technology

 

Millennials love to do everything online, so make sure you provide online portal for doing everything from paying rent to submitting maintenance requests. Other technological amenities that attract millennials would be Apple TVs, docking stations in common halls, electronic keys, and high speed broadband connection with Wi-Fi. Smart storage solutions inside the unit are also very attractive for millennials. 

 

 

How to Avoid Late Rent Payments

A late rent payment is a major issue faced by property management, since it restricts cash flow and the profit margin can come down. However, late rent payments could be inevitable due to the economy and the sudden changes in the financial situation of tenants.

 

Sometimes payments are late simply because the tenant forgot to send the check or put the check in the slot on time. Hence, some amount of flexibility is required to maintain cordial relations with tenants; however, providing flexibility should not be construed as acceptable behavior.  Here are some tips that can help reduce occurrences of late rent payments.

 

Tenant Screening

 

According to studies, people who have a history of skipping rent are most likely to repeat this behavior. Therefore, the first step would be to avoid renting properties to such people, by having an effective screening procedure. History of rental payment of prospective tenant can be accessed from Experian Rent Bureau. The history will have information about how well the person has paid rent in the past and whether there are any negative remarks. Hence, property management should take tenant screening seriously, and form policies for an effective screening procedure.

 

Punitive Actions

 

Late rental payments can be avoided largely by having some punitive action clause in the lease agreement for defaulters. Initial defaulters could be given a warning, but tenants who regularly skip rent should be penalized with late payment fees. Property management can keep track of such tenants, and keep sending them reminders before the due date.

 

However, the property manager should maintain a personal connection with the tenant and find out why the tenant is paying the rent late. Sometimes it can be a legitimate reason such as health problem or sudden unemployment, and so on. In such cases, property management should judiciously decide whether to be lenient or not. This is always a tricky issue because other tenants will start expecting the same treatment even when they are facing some sort of financial difficulty, which may not be as severe as unemployment or bad health.

 

In case of legitimate reasons, the property’s management can chart out a payment schedule with extended due dates, which is more favorable to the tenant. However, a firm stance should be taken against repeat defaulters, and tenants who are not able to keep up with the revised payment schedule.

 

Eviction should be the Last Resort

 

Leniency towards certain tenant who has legitimate reasons for paying the rent late could be warranted. However, when the problem persists and the tenant is not paying the rent due to habit or circumstances, property manager cannot afford to lose income. Therefore, ultimately, evicting the tenant will be the only solution to the problem.

 

However, before taking concrete steps to evict the tenant, property manager can serve a "pay or quit" notice, which will make the stand taken by property management quite clear. If the tenant does not respond even to this notice then the eviction process should be initiated immediately. There are laws governing the eviction of tenants, and property management should make sure not to break any law; otherwise, the eviction can prove very costly, and the defaulter might even win the case in the end.

 

 

Effective Tenant Screening Guide

Tenant screening is one of the most important jobs of property management. Screening is done to discover what the prospective tenant is really like, and whether he will be able to pay the rent. Application forms cannot reveal much and they can be falsified; hence, an effective tenant screening procedure must be in place, which will not only confirm the details that the tenant has provided, but also analyze outside information that can provide a reasonable estimate of who the tenant really is. Here are certain guidelines for effective tenant screening.

 

Checking Whether Tenant can Afford the Unit

 

The first thing that needs to be checked is whether the tenant can afford to pay the rent of the unit. As a rule, tenants who are earning at least thrice the rent amount will be able to afford the unit, and are least likely to stop their rent payments. Most tenants feel they can afford the unit, even when they really cannot. Hence, it is up to property management to set rules about income thresholds. Usually, income that is thrice the monthly rent is considered sufficient.

 

Checking for Income Stability

 

A tenant might be earning three times the rent right now, but property management also needs to check whether the tenant will be able to earn that much over the long term. For this, you need to check the type of job, past history of unemployment, and if the tenant is in the habit of switching jobs frequently.

 

Checking Rental History

 

Even when tenants are able to afford the rent, some of them will not pay it on time. Property management will have to check the person's rental history to find out if he has been flagged for late payments. Also, check whether there were any complaints about the tenant being untidy, unruly, or was known to create disturbances. As a general rule do not accept people who have been evicted from a property in the past unless they have squared themselves away, perhaps agree to pay higher rent, and seem level headed when you are meeting with them.

 

Checking for Criminal History

 

People who have a history of doing illegal activities, drugs, and criminal behavior are obviously not fit to be tenants, as they will only cause problems in the community, and eventually you will have to evict them, which is going to be expensive and time consuming.

 

Minimum Requirements should be met Before You Accept any Application

 

Set certain minimum standards, which should include:

 

ü  Minimum income of thrice the monthly rental

ü  No felonies or criminal background

ü  No evictions in the past

ü  Good references from previous property owners

 

When a prospect contacts you, make sure the minimum requirements are made clear to the person on the phone. This will save a lot of time, since persons not meeting these criteria should not even see the application form. Why waste their time at all if they do not satisfy the basic threshold?   

 

Application Process

 

During the application process, collect the following:

 

v  Personal details such as the name, current address, phone number, social security number, date of birth, and so on.

v  Details about current employer, job history, and present income.

v  Details about past and current property owners where the person was a tenant.

v  Credit report.

 

 

Important Points Property Management should Consider

With the increase in building activity, tenants now have a much wider choice, but property owners and property managers have to face a higher level of competition. Increasing the popularity of the property and decreasing the vacancy rates will be the top priorities for property management, but accomplishing these tasks are quite challenging. Usually property managers are too caught up in their day-to-day duties, and they miss the bigger picture. Here are some points that can help in broadening your knowledge, which will ultimately help in improvement of the property.

 

Investigating the Neighborhood

 

Property managers handling properties in new and unfamiliar areas should take some time off and scour the neighborhood outside the community. Focus on businesses and commercial places to get an idea about employment levels and the general state of the economy of the area. If there is a large company or offices in the neighborhood, check out if there are rumors of layoffs. If certain tenants are working in these places, then is the layoff going to affect them. Conversely, if there are new companies and offices coming up in the neighborhood, think of ways of collaborating with them for promoting the property.

 

Keeping Track of Real Estate Trends

 

Trends in the real estate sector can change rapidly, and it is important for a property manager to keep track of such changes. Review the properties that are in direct competition to yours. Check out the units on such properties by being a mystery shopper. List the things that are better and the things that are not so spectacular compared to your property. This will provide ideas for marketing and ideas for improvements. Keeping track of financing trends and interest rates of mortgages is also helpful, as these things could affect your occupancy rates.

 

Consider Long Term Improvements

 

To compete with newly built properties, it would be wise to update appliances, provide smart storage, and relax rules regarding pets. Investments may be high, but it will work out in the end, as you are likely to improve occupancy rates and popularity of the property. Secondly, consider upgrading technology on the property with better Wi-Fi, faster broadband connections, and improved cable services for entertainment.

 

Common Areas

 

Common areas are one of the aspects that many property managers do not seem to give much importance to, which could be a big mistake. Both young and senior tenants like a place to hangout, and having a community hall with adequate facilities could make a major difference to the property. Secondly, keep common area spaces clean and well maintained, such as the patio, corridors, parking spaces, and unused areas behind the property. Clutter and garbage in these areas can give the property a very shabby appearance.

 

Invest in Software

 

The right software and online tools can be of marvelous assistance in streamlining office tasks and in providing more convenience to tenants. For instance, the ability to make online rental payments, registering maintenance, and repair complaints through the property website is very much appreciated by tenants. Simplicity is the key!

 

 

How to Attract Millennial Tenants

Millennials, who are in the age group of 18 to 36, make up 25 percent of the total population, and they now prefer living in cities rather than the suburbs. Most of them are students who are making the transition from living on university campuses to apartments in cities.

 

Their requirements would have changed from student housing to workforce housing, but they are still attracted to certain amenities that they have been accustomed to during their campus days. These Gen Y renters have a clear set of things that they consider "essential", and they can easily pass up a property that does not provide these basic requirements. Here are certain aspects that property management should consider if they want to attract the millennial crowd.

 

Convenience

 

The main thing, Millennials look for in any property is convenience. The Gen Y crowd has got used to walking on campus, and they prefer everything within walking distance, whether it is shopping or their place of work. However, they are also not averse to taking the subway, wherever it is easily accessible. Hence, while marketing the units, property management should definitely mention that the shopping area or the subway is within walking distance.

 

Cost and Amenities

 

Millennials prefer smaller living spaces, as they will be less costly. However, the cost is not going to pay a major role when they consider amenities. For most Gen Y renters, the right types of amenities play the most important role in their choice of properties. So, what do they look for? Larger common areas are popular, and so are Pilates studios and fitness centers on the property. Pools, decks, and patios are also hot favorites, along with outdoor BBQs in the common area.

 

If the property is being newly developed then consider having higher ceilings with relatively smaller floor plans. This will not only bring down the rent, but the area will also appear bigger and have a solid or respectable amount of light. Another important aspect that is highly appealing to Millennials is smart storage solutions inside the units. Many apartments now include locks for bike storage directly on the ceiling or wall, which facilitates hanging the bike inside the apartment. Bike storage lockers are also popular, since tenants do not have to carry the bikes to their units.

 

Technology and Social Media

 

Millennials fully engage in social media and technology. Hence, if the property does not measure up to the latest technological amenities or capabilities like Wi-Fi connectivity, entertainment cable network and so on, it will lose its appeal instantly. Secondly, property management will need to have a strong online presence to attract this crowd, since they mainly look to online rating sites, Facebook, and Twitter to find an apartment. Lastly, these renters will expect doing all transactions online, from paying the rent to issuing a complaint.

 

Eco-Friendly and Green

 

 

Millennials seem to be more conscious of protecting the environment than any other section of society.  Hence, providing eco-friendly lifestyle and greener bright attributes could play a role in attracting these types of renters. 

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