As a landlord today, the chances of you renting your property to a youthful tenant are relatively high, especially in certain suburbs and the vicinity of the CBD.
Location and demographics no doubt have an impact on the type of tenant that your property attracts, as does the type of property in which you own.
Of course, tenants come from all stages and walks of life, from university students to retirees and anywhere in between, but it is younger generations – those just flying the nest and those who’ve already been renting for a period, who are choosing to remain tenants for longer than ever before. Some even have no intention of ever becoming a home owner. And that’s okay!
Why? Ask a dozen renters and you’ll get a dozen answers, but among the varied responses, one shared by many is likely to be the difficulty in breaking into home ownership.
Tighter lending restrictions, slow wages increase, and higher cost of living have all contributed to difficulty in purchasing property. But not only that, 2019 priorities are somewhat different to twenty- thirty years ago. Travel, career opportunities and lifestyle choices all contribute to a state of long-term renting being more appealing.
Rental accommodation for some allows more flexibility in living. There’s less pressure to find a location to ‘settle down’, so allowing younger renters the prospect of following job opportunities, travelling and exploring various locations prior to committing to buying somewhere.
Rental properties also offer tenants the opportunity to live in more desirable locations, which would otherwise be challenging to buy into as a first home buyer. Renting a CBD apartment or beachside home may be more achievable than buying, and may provide the lifestyle they desire, without the long-term commitment of buying.
Whatever the reason for a tenant to choose to rent over buy, the basic need to have a safe home remains. And regardless of who your tenant is, your property manager will go all out on your behalf to ensure that your property is matched with an ideal tenant.