A recent survey found that more than a quarter of Americans currently renting houses and apartments have no intention to ever buy a home.
The survey, by real estate search site Trulia.com, found 27 percent of renters do not plan to ever buy a home. Although 72 percent still expect to buy eventually, that proportion is down from 77 percent just six months ago.
So, is the American Dream of owning a home fading away?
No. But it is being redefined.
People are taking an extra hard look at the pros and cons of home ownership. And for many, renting a place that really fits their needs is the dream.
This is an opportunity for landlords! It means three things:
- Attract the right tenants. The most successful landlords and property managers know that most tenant problems can be avoided with proper screening upfront, particularly with background and credit checks.
- Customer satisfaction is more important than ever. Meeting the needs of your tenants pays off as they stay with you month-after-month, year-after-year. Think like a tenant instead of a landlord, and you will start to see opportunities to generate more money from your renters. Not just by raising the rent, but by being opportunistic about how you can better meet tenant needs.
- Make a new goal – your rental units can be the last and only place your tenants need. Strive to make your properties a place where your tenants can truly settle in and call home.
The survey also found that of those who do hope to become homeowners, two thirds say they will wait two years or more. So, start engaging with your tenants today to build a more successful landlord-tenant relationship. It’s a win-win for both of you!
But what does it mean to “engage your tenants?”
Well, start by communicating. Call your tenants or drop by to see if they have any new needs. You just might learn that they are expecting a new baby, have bought a new car, or recently started a new job.
Be opportunistic and think of how you can make money by responding to new and evolving needs of your tenants.
- New baby? Recommend a local babysitter or daycare provider. And give them the opportunity to upgrade to a new unit or home with more space, nicer amenities, a yard for kids to play in, etc.
- Just bought a new car? Give them a coupon for a free car wash. And a great monthly rate to lease a carport or garage that will protect their new treasure.
- Started a new job? Give them a popular audio book on CD or tape. And do you own another property closer to their new work? If so, give them the option to move with a discount on the first month’s rent and a free moving truck to cut their commute down.
These are ways that the best landlords keep good tenants. And keep them happy. It’s so rare in the rental industry to find a landlord who thinks from this perspective. But you can be the first and gain a huge advantage over every other landlord in your market as many of your tenants live out their own American Dream in one of your properties!