Rental units in multi-family housing draw all sorts of tenants—couples without kids, millennials, baby boomers, bachelors, single parents, you name it. Out of all these possible tenants, which ones are the best? Who will give you the least trouble? Baby boomers probably didn't come to mind, but, yet, they may be the best answer to those questions.Individuals between the age of 52 and 70 have largely done it all. They raised the family, ran that business, and bought and paid for that house. Now, when everything's been done and all the life boxes have been checked, it's time to downsize the living space in order to upgrade the lifestyle.
What Makes Baby Boomers Ideal Tenants?
So you may be asking what exactly makes this specific demographic great renters. Well, there's multiple convincing reasons, starting with financial stability. They've officially downsized, sold the house, and now there's a lot of money in the bank account. They have the money to consistently pay rent month after month, year after year. There's no asking where the rent is or reminding them about the payment that's coming up. From the condo manager's viewpoint, they're no trouble at all.
Baby boomer tenants are less of a risk than other types of tenants. They already did the house thing, and it was probably in amazing shape and lovingly taken care of. The same idea of pride will transfer over to your rental unit. You can make a sigh of relief knowing the unit will be clean, tidy, and well looked after. The walls will last longer with them compared to the single parent with the child.
What also makes older tenants less of risk is the fact that they're willing to invest in insurance. According to a recent IBIS World Study, "middle-aged consumers are more likely to invest in property and casualty insurance." This is great news! Rental insurance benefits both the renter and the condo because it can cover any damage that may be done during the rental period. Other renters, like millennials, may not have the extra cash to do this.
The last reason why older tenants are ideal is because they're there for the long haul. For them, houses, and the maintenance that comes with them, are no longer in the picture. It's a goal they aren't working towards anymore. Therefore, you can guarantee that they'll be renting for many years and will be a profitable source of income.
Related: 5 Ways to Decrease Tenant Turnover
Why Millennials May Choose to Rent, Not Buy
Millennials are a renter demographic that won't disappear soon. Renting is simply easier for them instead of saving the capital to buy a home. In reality, paying rent each month is much less expensive than paying a mortgage, multiple utility bills, and insurance. Many millennials also face the serious problem of crippling student debt, which makes renting the better option for them.
Millennials also like the idea of renting because a condo is less maintenance than a house. There's no lawn to mow, snow to shovel, or leaves to rake. If something breaks, all they have to do is call the landlord or manager. Millennials don't have to stress about repairs or learn how to fix it themselves.
The last reason why millennials are more likely to rent is because renting gives them more freedom. When they rent, all they have to do is sign a yearly lease. If they end up hating their neighbours or getting a job in another city, it's fairly easy for them to pack up and ship out. A house, on the other hand, is much less flexible. A mortgage ties them down and allows less freedom.
Out of all types of renters, baby boomers are ideal for multi-family properties because they're easy tenants and reliable. However, millennials will likely be renting for a while because it's a cheaper option and less maintenance.