Do you Know What your Tenants Want?
We all want a fantastic home, but across the varying demographics what that means can change significantly, especially when it comes to renting.
What do Different Age Groups Want?
Someone in their 40s who is settled with a partner and children will likely have very different renting goals from someone who has just left home and is looking for their first flat.
So what is it that each age group wants? Understanding this can help you a great deal, especially if you're someone looking to buy a property and let it out to tenants.
For young people, their rental choices are largely dictated by budget. Those attending university may only be able to work part time, and those just starting out in the workforce may not have the cashflow to afford a high-end rental property.
On top of this, Gen Y loves to be active in the city, and are looking for the best of both worlds - central location and affordability. This is often addressed through shared accommodation, or flatting. Homes with four or more bedrooms allow young people to split a lot of the costs of living that would otherwise put properties out of their reach.
The Wall Street Journal quotes the Urban Land Institute as suggesting Gen Y want compact urban property to rent out, so if you're looking to target this market, owning apartments or small townhouses could be a good move. Keeping them close to public transport and near central hubs will ensure a constant flow of young people drawn to your property.
As people grow older and start families, priorities change. The hustle and bustle of city life is no longer as much of a priority, especially if good infrastructure means the city and work are only a short commute away. This is traditionally where people begin to look at owning a home but with the rising cost of housing, many more Australians could be looking at renting.
In fact, a 2012 Pew Research study showed that Gen X was actually the most pessimistic about having enough for retirement - suggesting a shift away from home ownership and the gains within.
Owning homes that have amenities that are suitable for families and that are in good school zones might be the key to attracting Gen X renters. Provide for their family for the long term and they may in turn provide you with stable rental income.