Posts Tagged ‘Amenity’

The Rise and Fall of the Rental Regime

October 11, 2012

The moon waxes and wanes, tides ebb and flow, and we all know that what goes up, will eventually come down; so it came as no surprise when the rental market started “showing signs of losing steam”, according to a recent report from Reis Inc.

Image Courtesy of Wall Street Journal

     In an article from the Wall Street Journal on October 3, 2012, Dawn Wotapka outlines some interesting statistics regarding the recent slump in the rental sector, possibly due to tenants feelings more inclined to purchase real estate while the rates are so low.

What does this mean for the multihousing industry? Well, seeing as research firm Zelman & Associates estimates roughly 235,000 units to be new construction this year alone, it might mean a few things for a property owner.
Not only will rental prices likely decrease over the years to come in order to obtain and more importantly, maintain occupancy; but property owners will have to do their fair share to make renting more attractive than owning. The good news here is that rental properties already have a head start– one word: amenities. Services such as Wi-Fi, when included with a rental property, automatically make a bare home look exactly that, bare. It is essential that owners do all they can to outfit their rental properties with all desired amenities, and adding a fully managed and monitored wireless network to any property is certainly going to increase the rentability, while also leaving property managers and owners available to fully focus on advertising their amenities advantage, and filling their buildings.

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Millenial Maddness

September 12, 2012

Satiating Gen Y’s technological tastes

 

 

It’s amazing how time changes things—what was once a commodious place to unwind and slow down from a busy day is morphing into a space efficient, Wi-Fi enabled hang-out, with unparalleled connectivity speeds to the outside world.

 

The fact is that today’s “Gen Y” renters are changing the game for today’s residential multifamily and student housing property owners. In an article written by Jennifer Chan of Zillow’s RentJuice on August 2, 2012, she states that the new wave of renters, many of which are college students or recent graduates, have a seemingly updated list of important factors when searching for a rental property—among these are energy efficiency and lax pet policy, but even more importantly, Wi-Fi connectivity.

There is no denying the technological transformation across the board, and that certainly includes the housing sector. Today’s renters are changing not only the way residential multifamily property owners market their properties, but how they outfit them, as well. Sites such as Craig’s List have made online advertising of available properties a must, and are slowly eliminating the need for more outdated ways of searching, such as the newspaper (I know, I didn’t realize this was still in print, either!). Social media is a force to be reckoned with, sweeping the rental market by storm. In an article by Sarah Gabot of RentJuice from February 8, 2012, she states that, “This generation, also known as ‘Millennials,’ consists of 70 million people born between 1982 and the early 2000’s.” She is referring to Generation Y, as I mentioned earlier, and I think it’s fair to say they, well, we, are a bunch of social media idealists. Many property managers are looking to reach this group on their terms, which of course requires having a solid social media presence. Facebook, Twitter, and LinkedIn are all proving instrumental in transforming vacancies into occupancies.

But it doesn’t stop there; filling a space is only half the battle- retaining the renter is arguably more important. The market is taking a turn in desired amenities; in an article published in Good Magazine on February 7, 2012, Nona Willis Aronowitz writes, “Six in 10 people said they would sacrifice a bigger house to live in a neighborhood that featured a mix of houses, stores, and businesses within an easy walk.” While this statistic exemplifies one of the movements in the wants and needs of a modern renter, a property manager might be hard pressed in certain situations to make this a possibility—which makes including any accessible amenities even more important.

WiFi internet has become the most requested amenity anwhere—restaurants, gyms, offices, almost any and everywhere is WiFi enabled, even town greens are going wireless– and the residential multifamily industry is no exception! Trying to rent an apartment with no internet access would probably be harder than renting one without running water this day in age. In another article posted by RentJuice on February 7, 2012, Jennifer Chan includes a few enlightening facts from a J Turner Research study, sharing that 89% of students are doing their schoolwork online. She continues on, adding that from a survey of 10,000 college students, 64% would consider relocating due to low satisfaction concerning internet speed; 87% of those students are using the internet to maintain their social network accounts, while 56% are online for between 3 and 5 hours a day. When you consider these numbers it helps to put the importance of internet in perspective. Students, who are doing the majority of their work online, do not want to be restricted to their bedroom or dorm to do their work– they want WiFi connectivity throughout their entire property, and they want it seamless.

It’s incredible, the changes our society has undergone over the last thirty, even 10 years! Who would have thought we would be taking our tablets out for a walk in the Wi-Fi enabled park, along with our dogs? The internet certainly is a necessity, and it is undisputable that a property with high speed Wi-Fi access would rent faster than the same property without that amenity available, especially to today’s ever changing market of tech-savvy renters. Just some food for thought.

 

 

http://www.foxnews.com/leisure/2012/08/08/apartment-trends-what-renters-want/

http://www.zillow.com/blog/2012-07-13/how-to-reach-generation-y-renters/

http://www.zillow.com/blog/2012-08-02/apartment-trends-what-renters-want/

http://blog.rentjuice.com/marketing-rentals-towards-students-connectivity-matters/

http://www.good.is/post/most-americans-want-a-walkable-neighborhood-not-a-big-house/

http://blog.rentjuice.com/how-to-market-rentals-to-generation-y-our-4-week-social-media-regimen/

http://blog.rentjuice.com/how-to-attract-generation-y-renters/

IMAGE- http://www.dumblittleman.com/2008/12/21-excellent-web-apps-for-college.html