Follow the Money: The Rental Market is Yours
In this series, I have been writing about ways to expand your business and create new opportunities in this challenging business climate. This month I will focus on the apartment rental market – how to capitalize on recent growth and demands of today’s renter.
First, let’s look at the facts. A recent report released revealed that in properties with 5 or more units, starts are more than 80 percent higher than two year’s ago. While this is still low by historic standards, the numbers are rising rapidly.
When it comes down to it, every multifamily builder has two main objectives – how to get higher rent and have higher occupancy than the rest of the market. The key for their success is differentiation and therein lies the opportunity for your business.
The biggest demographic group that is driving the growth in rental construction is Generation Y. As this group waits longer to marry, have a family, and purchase a home, they are renting. And GenY’s aren’t just looking for any apartment – they’re looking for apartments that are technology-rich, customizable and include high-end community living areas.
Imagine an apartment that is wired for entertainment with lighting control and a security system. What type of “gee-whiz” feature can your business offer that would appeal to this market?
And imagine if this was more than just a one time offering – can your business deliver an upgrade that a renter might be willing to pay $5-$20 a month for? For example, one retailer got creative and partnered with an apartment community to offer built in audio systems for $20 a month – this type of recurring revenue could make a big impact on your business – especially if you multiply it by the thousands of renters in your market.