Requirements of various types of tenants keep changing, and it is important for property management to keep on top of the current trends. An emerging category of young professionals is taking prominent position in the property market. There are many professionals looking for proper accommodation, especially near commercial areas and in metro cities. The interesting fact is that most of these professionals are willing to trade size of the apartment for frills and better amenities.
According to statistics, the average size of the typical apartment in major cities has been steadily reducing for the past five years, and most professionals are more concerned about amenities and other facilities provided in the units, compared to living space. In many modern apartment complexes, there is the trend of allocating quite a bit of area to micro units, which shows that living space is becoming smaller.
Even though living space area has been reduced, rents have steadily increased, especially in properties that provide better amenities. Young professionals and even families are willing to pay higher rents, provided there is parking space, Wi-Fi connectivity, fiber optic broadband, and better satellite television or cable connection.
This is because the poor banking situation has forced many people to rent. It is more difficult to obtain a loan nowadays and certainly a few years after the Alan Greenspan financial crisis.
Small units, particularly in urban areas are very much in demand, as many professionals are relocating to cities with better prospects. It is not only the amenities provided in the units making a difference, but also the jobs, facilities, entertainment, and shops available in the immediate vicinity. Secondly, stringent standards implemented for mortgage (briefly mentioned above) and rising prices of new homes has reduced the number of homebuyers and increased the number of renters. This has put added pressure on cities, since the demand for accommodation keeps increasing.
The Proper Focus
All these statistics and trends provide important clues for property owners and property managers. The focus should be on increasing amenities and developing better facilities that young professionals are looking for in apartments. Investing in better storage space within the units, and providing better Internet connectivity would be a good idea. Property management can also think of renting the ground floor areas to shops and small businesses that will make it convenient for tenants to shop and access important facilities and services.
If the property is relatively old and the living space of most units is quite large compared to modern standards, then strategies should be in place to facilitate sharing of the apartment unit by multiple renters. This would involve careful drafting of the lease agreement, where the responsibility of the rent is shared equally by all members renting the single unit. Many young professionals are not averse to sharing their living space, provided there are separate bedrooms.
A Long Commute is not Appealing
Property managers facing increasing vacancy rates can think of revamping their marketing strategy to attract young professionals. Investing resources for this category of tenants promises solid returns, provided the property has a sparkling location, and is near offices and commercial establishments. Most modern professionals are now looking for accommodations near their place of work, and do not want a long commute. Property management can carefully consider all these factors and implement strategies to tap into this emerging category of tenants.