While most landlords already know what to expect from millennial renters, there is still no accurate description of an average Gen Z tenant and their renting preferences. It’s assumed that they prefer affordable housing over industry-leading amenities. But the 2020 crisis has reshaped the rental market and the whole picture might have drastically changed.
Despite the shift, property managers have come up with a few marketing approaches that work perfectly with the newest generation and result in attracting more Gen Z renters.
Gen Z are known as tech-savvy young people born after 1996. They have big ambitions and a new mindset focusing primarily on the practical side of the world. They adapt well to the “shared” economy – akin to a minimalist lifestyles supporting services like Uber, AirBnB and the like. They tend to be financially independent, and value jobs that provide more flexible schedules, rather than the 9-to-5 grind.
The Zer’s value in person interactions but still communicate mostly online. Gen Zers are digital fluent- they can hardly imagine a single day without scrolling through Instagram, except for during a digital-detox. Which rarely happens.
In terms of student housing – This demographic has an abundance of quality education. Unlike Millennials, and due to their competitiveness, Generation Z is more likely to be enrolled in Universities and get a higher education in the world’s most prestigious institutions.
Being brought up in a digital environment, Z’ers are used to viewing the world from a unique perspective and look for the answers online. So, if you were planning to advertise vacant rentals in a newspaper don’t expect a lot of Gen Zers to apply for it. Regardless of the fact that they prefer reading printed books more than their Millennial counterparts, Gen Zers are a digital-oriented demographic group.
When it comes to property amenities, in-unit laundry and air conditioning are the most important amenities for Gen Z tenants. For many Gen Zers, an apartment often serves as a study den, meaning they need a functional and practical place rather than a luxury apartment with expensive furniture.
Landlords should create favorable housing conditions and provide positive renting experiences by offering online rental applications and leasing procedures that can be done online, as well as online payments and maintenance management. Good property management delivers quick and convenient rental solutions designed to save time and increase tenant satisfaction.
About 50% of Gen Z tenants spend 25-40% of their income to pay for rent. They are most likely to either move back in with their parents or look for a roommate to rent an apartment when out of school. Another interesting fact is that 45% of Gen Z tenants wouldn’t mind paying more for privacy as opposed to outright shared accommodations. They are willing to spend a higher percentage of their income on rent payments to achieve this.
It’s good to know your renting demographic, especially if they are your target audience. When it comes to renting your investment property, you will be able to connect better with Gen Z’ers if you know their traits and what they value when looking for accommodations at a University or within your neighborhood.