Being a landlord or a real estate investor means entering a highly lucrative market where the growing population opts for rentals more than ever before. With increased demand comes more competition--and your apartment needs to match the needs of your target audience. As with every generation, your potential tenants in 2021 will look for very specific kinds of rentals with the latest features available. After all, renting an apartment is often a long-term investment, and it requires thorough research before you can find that perfect match that feels like home.
As a landlord, it’s up to you to create that feeling of warmth and to embrace the more advanced, innovative tech ideas and security precautions. Plus, there are various design and architecture trends dominating the market that are worth noting for when you’re about to renovate. Here, we’ll go over a few of the most prominent trends for today’s market so that you can make your own real estate more appealing to your target demographic.
Now that most of your potential tenants belong to the younger generations, such as Millennials and Gen Z, you as a landlord need to think of their values when making an offer. One of the greatest causes the modern tenant cares about is sustainability--which means that your apartment should be eco-friendly at every turn. Energy-efficient lighting and water installations, automated thermometers, composting stations, recycling bins, and a range of other features are on the rise. Make sure that your apartment is equipped with sustainability in mind.
Modern-day renters tend to have demanding jobs and spend hours on other activities that complement their lifestyles--such as fitness and health. In that respect, more people will look for practical studios that are both low-maintenance and fully serviced, especially in densely populated cities.
This year and beyond-- serviced studios for rent that offer communal areas such as laundry rooms, a lounge area, and a shared kitchen will be much more popular. Access to these shared spaces makes the studios incredibly practical for entrepreneurs and freelancers--as it grants them more free time and convenient features that come with the apartment to minimize maintenance and chores.
Both studio and micro apartments will become more popular in the future. People are now looking for feature-rich, but practical spaces, as they don’t want to waste time on hours of cleaning and upkeep for their space. Instead, they want smaller apartments with multi-purpose furniture, seamless storage options such as closets built into the walls, and beds, sofas, and chairs with built-in drawers.
With so many advantages of small-space living, more hard-working people will look for such apartments instead of multi-room homes that require constant maintenance, come with exorbitant utility bills, and frequent repairs. If you’re looking for a perfect entry into the market, look for a smaller apartment that you can furnish with fewer, functional pieces, and you’ll rent it out much easier.
When you’re at the beginning of your journey to become a landlord, make sure that part of your real estate investment plan includes a budget for tech upgrades and innovative security solutions. Especially if you’re renting your small-scale apartment to single people or couples, you should make sure that you have installed the latest security system available that makes sense for your neighborhood.
In addition to security, IoT-based systems that give your tenants greater control over their appliances will be a great perk to offer in 2021 and beyond. Smart home features are on the rise, and people will want to live in apartments that leverage smart technology more than ever.
Since apartments are usually located in urban environments, you need to leverage all the possible benefits your particular location offers. For example, is there a nearby parking facility with high-security levels that a high-end renter would appreciate? What about a co-working space a block away perfect for the Millennial and Gen Z? Any international restaurants, fitness and wellness centers, or parks nearby?
Make sure to emphasize schools in the vicinity of your apartment to families that are looking to rent, as well as public transportation access. Since the modern tenant is looking for convenience, they’ll want to make sure that they pick an apartment that’s not just modern and compact--but also well-connected with the rest of the city.
Depending on the size and scope of your rental business, whether you’re merely renting your one extra apartment or you have an entire complex of apartments scattered across the city--you’ll find the market is leaning in your favor. More people are looking to rent instead of buy--and they need well-equipped, well-designed apartments to make their modern living easier. This is your opportunity to match your tenant’s needs and upgrade your apartment with novel features to keep people interested and bidding for your place.
About the author: Mike Johnston is an avid blogging enthusiast and experienced writer and editor. He’s a regular contributor to numerous blogs and online publications where he writes about business, real estate, construction, and home improvement.