As the saying goes…Millennials are tech-savvy, but Gen Z are digital natives, and if you ignore the needs and habits of these two giant renter groups, your property portfolio could plummet. For people of these generations, tech is how they communicate and adjust to the world as well as interact with services and brands. When Millennials and Gen Z review properties, they’re likely to lean toward those that have technology woven into the threads of the community and how it's managed.
Digitally-enabled processes are no longer a nice-to-have, but a non-negotiable when you want to support the backend of your operation. That means being able to onboard tenants who grew up with a computer, tablet, or smartphone at-the-ready with an app or platform built to their tech specs.
Plus, with 57 percent of REALTORS saying a lack of housing inventory is the leading reason their clients can’t buy homes, pounce on the chance to help Millennial and Gen Z tenants find their dream unit with your app or platform.
If you’ve been ignoring how they lease until now, it’s time to learn how you can adapt and grow with their preferences to gain their attention as the largest potential tenant pools. Without incorporating tech-centric leasing and tenant screening processes, you’ll be scrolled by as your ideal tenants move in with your competitors.
A RentCafe survey found 62 percent of Gen Z and 57 percent of Millennials said technology is extremely important or very important in their apartment and community. And even more than extra bedrooms and space, Gen Z and Millennials want upgraded tech features like high-speed internet plus smart locks, thermostats, and energy-efficient appliances.
Without a bevy of techy amenities or an app process that makes it difficult for these generations to rent from you, it’ll be difficult to swim in this ocean of renters. To take a step forward, you need to use a streamlined platform that allows ideal tenants to upload their verification documents, connect their bank account securely for automated income verification, easily track the status of their application, and allows them to apply and onboard through one app.
It’s not just that they want ease-of-use, but to ensure their information is secure, you can meet them where they operate with technology, and you don’t overwhelm them with steps that waste their time.
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Reaching Millennials and Gen Z can be as simple as connecting with the world in a similar way that they do; that means tech should be the priority force in your property management business. Both of these technophile tenant generations value digital communication through seamless tools that move them quickly through necessary processes.
In the RentCafe survey, online rent payments were a much-desired digital feature for both generations along with mobile apps, and Gen Z was more interested in text rent payments than any other group polled. Plus, KPMG found that in order to create competitive market advantages, real estate pros need to have digitalization top-of-mind.
With Millennials and Gen Z moving less, according to Avail (part of Realtor.com), there’s unique conditions for landlords. Without much pushback, the data shows property managers could increase rent for existing tenants who are already planning to stay put. If you had a tenant screening and leasing app on your team, you’d also have properly-screened, high-quality tenants in place that you can depend on to keep your retention and profits up.
Technology is the natural next step for property managers that wish to connect and communicate with Millennials and Gen Z in ways that make sense to them and attract them to their properties. Using tech, you can limit the chance your competitors may swipe large amounts of ideal tenants and match exactly what these renters seek from property management companies.
Are you still pushing paper and checks around your desk or muddling through a ton of manual methods? When the largest groups of renters want leasing the easy way, just as simple as if they were to book a hotel room, your outdated, antiquated processes won’t sync up, and you’ll be left with more vacancies than profits.
Digital solutions, including leveraging AI, will transform the entire real estate field, says KPMG data. Where pen, paper, or spreadsheets once stood, Big Data, IoT, AI, and machine learning will take their place in the rental realm. These new technologies, KPMG says, will help real estate pros make better decisions with their properties and portfolios.
As Millennials now make up 43% of homebuyers, the most of any generation, and Millennial sellers are growing to 26 percent since 2021, shows data from the National Association of REALTORS (NAR), why not capitalize on these fruitful tenants who are financially fit as they move toward leasing over homebuying?
Wanting the freedom of digital with the interaction of in-person, KPMG shows, renters, especially in these two generations, want technology to be smooth with a human touch. Saying to them, “This is the way we’ve always done things,” won’t help you connect, differentiate, or score renters who are moving away from buying. It’s only when you align your leasing company’s operations with emerging tenant ideologies that you get the low vacancies and high profit and retention you desire.
Collaborating with a tenant screening app or end-to-end leasing platform built with Gen Z and Millennials in mind helps you skip the line. You’re able to leverage their AI, machine learning, and automation to onboard more of these renters in less time while eliminating fraud. Especially when an Avail survey showed 27 percent of landlords reported lost income due to missed rent over the past 12 months, you want a platform that’s already using cutting-edge tech while eliminating non-ideal tenants so you’re not chasing bad checks.
The right partner will keep your revenue secure, attract Millennials and Gen Z the right way, and help you skyrocket closer to the record-high rents that Realtor.com shows. Providing the exact upgrade through groundbreaking tech to your property management company, your leasing app gets you on the same page with these lucrative generations while saving you time and money so you can get back to providing top-tier experiences.
