Move over millennials and Gen-Z. The baby boomers have become the fastest-growing group of renters in the UK and USA.
They’re getting rid of their large home investments and instead choosing to live in rented properties. This change in living conditions is likely driven by the desire to cash in on the current hot housing market or simply live a more flexible lifestyle.
And, adding to the allure of these rentals is the fact that they are usually fitted with the latest property automation technologies. This makes the home more connected, efficient, comfortable, and hygienic.
Read on, as we deep dive into this new trend and understand how property managers can make the most of it.
Rent appeal: What is driving the rent appeal amongst seniors?
Baby boomers, those born between 1946 and 1964, own 44% of homes in the United States. That makes up the country’s largest chunk of real estate.
Most of them invested in these properties with the long-term view of having a stable home to age in place.
But, they are rapidly (and in droves) switching to rental homes as they wish to:
- Capitalize on the buoyant market: With the boom in the housing market, where houses are selling at or above list price, baby boomers are opening up to releasing equity and downsizing to a smaller rental home. The thought here is that the capital secured from selling their home can be put towards a sizable retirement fund.
- Live flexibly: Baby boomers want more flexibility when it comes to their location. They want to do things like live closer to their children or friends, experience living in a different city or community, etc. At this lifestage, there are fewer responsibilities and less need for space. So, boomers are ready to stay at rentals in different places before relocating to the place that will be their permanent home.
- Choose a hassle-free lifestyle: A clogged toilet, unmowed lawns or broken roof tiles are unlikely to be a boomer’s concern, once they’ve moved into a rental. In most cases, it’s the building manager’s or landlord’s responsibility. With rental homes, baby boomers enjoy the convenience of not taking on the responsibilities of home repairs or upkeep.
Also, rentals are usually equipped with the latest smart home technologies, such as smart locks, connected thermostats, and lighting control. This makes it possible for renters to control their homes without having to move an inch.
How to attract this new demographic of renters?
Clearly, there are many reasons for baby boomers to want to make the switch. All that you, as a property manager, need to do is nudge them in the right direction.
It’s important to note that property automation tends to be a crucial deciding factor when it comes to them choosing one rental home over the other.
Here are the three top Cs of property automation that help hook the boomer renters:
- Cost savings: When renters are on their pension or living off of a retirement fund, every penny counts. So, the savings on utility bills that come with rental home automation will really hook baby boomers. In fact, there are intelligent energy-saving devices that can reduce heating and cooling costs by 23%.
Some of these technologies can even learn the renter’s schedule and turn off the HVAC when not required. And, they alert property managers when it’s time for routine maintenance of the smart thermostats, to sustain their energy efficiency so that the renters won’t have to pay higher energy bills.
- Convenience: What baby boomers love about rental houses with proptech is the “hands-free lifestyle” that it offers. With just a click of their mobile device or a voice command, renters can toggle with the light, HVAC, TV, music system, or security system features. Meanwhile, the keyless entry technology allows entry for deliveries or guests without ever walking to the front door or garage.
- Crisis prevention and preparedness: Older the boomer gets, the more they worry about personal and property safety while continuing to live independently. Luckily, rentals with property automation can put the boomer’s and their family’s minds at ease.
Most rented apartments come with smart cameras, security systems, and life safety monitoring technologies that will alert the renter, their family, or first responders immediately. This ensures that there is an extra layer of protection in case of breaking and entering, fires, CO2 leaks, etc.
Property automation and the future of rentals
Just like the short-term rental sector is booming, so too is the residential rental marketplace, as well-to-do baby boomers seek greater flexibility and convenience.
With more disposable income to spare than the millennials, this generation is a great target market for property managers to pursue.
Just remember that all the baby boomers want is flexible, safe, cost-effective, and maintenance-free living. And, rentals fitted with property automation offer all of that and more.
So, to get more bites on your listings, upgrade your rentals with property automation technologies today.
Contact us to find out more about how your property business can benefit from our enterprise smart home automation solution.
