Southern Connecticut has seen incredible growth in recent years. The state as a whole now has a thriving rental market – with a sharp increase in the demand for single-family rental homes among a surprising number of millennials. Perhaps even more interesting is that many of these renters are committing to their rental properties long-term—even up to 5 years or longer—rather than the standard 12-18 month rental terms. For companies like Real Property Management Southern Connecticut, one of the most trusted property management companies in New Haven, CT, understanding why millenials are intentionally choosing to rent single-family homes over purchasing is paramount to knowing how to best serve this growing market. Here are the top three reasons why millennials are renting now more than ever:
- Freedom — Many corporations are opening glistening new facilities in the Southern Connecticut area and attracting job applicants from all over the world, as well as appealing to new college grads who are looking to boost resumes and employment opportunities. Many millennials report that one reason they don’t want to buy property is because they don’t want to be tied down to a mortgage should new job opportunities arise. Renters don’t have to worry about hassle of relocating as much if they are renting – they can just pack up and go. In short, they want the flexibility to go after the latest and greatest job opening when it crosses their doorstep. RPM Southern Connecticut can tailor lease options for clients in these situations.
- Finances — One of the top reasons given by renters for choosing long-term leasing over the predictability of a mortgage is that upfront costs of renting are generally less expensive. Even though renters know they aren’t building equity with property ownership, renting can be less expensive than a monthly mortgage payment. This leaves more money in the bank for covering living expenses and social lifestyle upgrades. Between saving up for a decent down payment, accounting for home maintenance costs, and finding affordable housing in an increasingly competitive housing market, it’s hard for young professionals to manage that kind financial responsibility when they’re still paying off college debt. It is also not uncommon to see millennial families with young children choose single-family rental living; a trend that was not as prevalent in the marketplace 30 years ago.
- Peace of Mind — Renters revealed that they felt less financial stress related to fixing serious repairs on things like furnaces, appliances, and water heaters when they could call a landlord or trusted property management companies in New Haven, CT, to handle it for them. It is simply easier to make a phone call and let your landlord take care of the problems. Real Property Management New Haven, CT, has the resources for group discounts for maintenance supplies and equipment. This creates a win/win situation for tenants and property owners when a repair is needed. Regular inspections also help keep an eye on potential problems before they turn into bigger headaches with bad timing.
Are Property Management Companies in New Haven, CT, Able to Cater to Millennials?
Many of the renters who were surveyed indicated that they didn’t think they would be making a home purchase anytime soon, even though most did not grow up in a rental situation. Choosing a single-family rental gives millennials that flexibility while providing the comforts of a home. “It’s a fascinating trend to watch,” says Paul Dupervil of Real Property Management Southern Connecticut. “This is great news for property managers and investors as well. It means that they get high quality tenants who are willing to commit for a few years and when the property does turn over, there is a fresh pool of similar tenants waiting to take over. Quite honestly, I’ve not seen anything like it.”
There is a downside to the increase in rentals. There is also a slow, but steady increase in the price per square foot for rentals. At some point, Dupervil argues, it will become more profitable to buy than to rent. “When that happens,” he says, “we’ll probably see a pretty steep decline in rentals as well as rental prices, but who knows. If there is one thing I’ve learned with property management it’s that you can always be surprised by the way people purchase homes, besides, there will always be a need to rent.”
This means that there really is no better time for investors to snap up a few rental properties to call their own. And as prices begin to rise, both in buying and renting, locking in those rates now is a great investment plan.
Why Choose Real Property Management New Haven, CT?
Owners and investors throughout Southern Connecticut—and nationwide—trust Real Property Management to manage their residential rental properties. With an established infrastructure and over 25 years of industry experience, we have helped thousands of investors avoid costly mistakes, maximize efficiency, and increase revenue.
Real Property Management is committed to providing unsurpassed customer service to you and your tenants. As the most reliable, cost-effective property management companies in New Haven CT, we have the knowledge and know-how to oversee everything aspect of property management. We offer all of our clients the following services:
- Comprehensive Marketing & Advertising — Our comprehensive marketing strategies allow us to aggressively advertise your client’s property and quickly fill vacancies.
- Thorough Tenant Screening and Selection — We conduct criminal, credit, and employment checks on every applicant over age 18.
- Full-Service Leasing — Our leasing system provides rent-ready guidance materials, an up-to-date rental market analysis, professional lease showings, property inspections, and tenant education at lease signing.
- Routine Property Inspections — Regular interior and exterior property evaluations ensure that tenants are in compliance with the lease terms while proactively identify maintenance needs to preserve the property.
- Online Reporting — Owners can check-in on their property using their online account portal, with easy access to property activity reports.
- Cost-Effective, Reliable Maintenance — We offer special discounts on equipment and services to our clients through our preferred vendor program. Our maintenance staff is available 24/7 to handle tenant emergencies and ensure maintenance requests are handled in a timely and cost-efficient manner.
- Timely Rent Collection — Our firm but fair collections process allows us to collect and process payments in a timely manner.
- Strict and Compliant Evictions — Late or delinquent payments automatically trigger our escalation protocol where legal steps are taken to minimize costs and get the property leased again. Our highly-trained staff know how to execute all state and local landlord and tenant laws in professional manner.
By working with us, you too can benefit from working with one of the most professional property management companies in New Haven CT. Call Real Property Management Southern Connecticut today!