How to Attract Baby Boomer Renters

July 12, 2023

Attracting Baby Boomer Renters

New industry reports are talking a lot about how baby boomers are driving the housing market right now.

Overall, they own half the wealth in America, and they’re swelling the senior age group category and will continue through 2030. They’re competing head-to-head to buy homes vs Millennials and winning, yet Millennials will eventually get the edge on home buying. The value proposition for buying will decline.

“Baby boomers made up the largest share of homebuyers last year at 39%, according to a recent report from the NAR. Their share rose by 10% from the previous year. By contrast, millennials, who recently became a homeowner majority generation, saw their share of the market shrink in 2022. Millennials accounted for 28% of home purchases last year, down from 43% in 2021, when they made up the largest share.” — from the TheHill.com.

They Prefer to Buy, but will They When Homes Prices Continue their Upward March?

They will dominate the rental market as well. As it turns out, they’re ideally suited to target as your ideal rental prospects.

There are still at least 65 million baby boomers in the US. They’re not simple to convert to customers, however, by developing your marketing, sales and leasing efforts, you may find they are reachable, persuadable, reliable, and profitable tenants.

Increasing size of senior population. Screenshot courtesy of Statista.

They may want to buy, but it’s not financially sound nor possible given the high home prices.

Baby boomer reasons for renting. Screenshot courtesy of Statista.

Buying is Hard, Renting is Easy

It seems this massive group of older homeowners and home buyers born between 1945 and 1964) are on the hunt to buy and transition to smaller homes. Like many, they’ve been locked into their homes for years now, so there’s a tsunami of them who will make the move to rentals in the coming years.

Buying was understandable, given that this generation always put their faith in ownership rather than renting. In fact, for most, their house is their retirement savings. Yet the other estimated 15 million have plenty of financial resources which they’re beginning to transfer to their kids.

Right now, buying is hazardous to their wealth too — mortgages, taxes, fees, all erode their money. But renting too has its hazards and costs which must be dealt with in your marketing strategy to convince them to rent from you.

Marketing and Promoting Your Value Proposition

Baby boomers are living longer than any previous generation. Yet they have their needs and wants, and it appears that renting condos/bungalows is on their list of things to do. Selling the house at today’s prices might be a sound strategy to enable them to enjoy life fully for decades more.

In fact, by selling and then renting from you, they have the comfort and convenience they seek to get on with fulfilling their bucket list. These final-phase-of-life ambitions are important to them.

And what if the alternative of renting homes was posed to them in an effective way? As in any marketing and business project, you have to present a smart argument to help them deal with the anxiety, sell their home and rent your property.

In fact, you may want to buy their home as your next income property. You’re creating new customers in many ways.

Why Baby Boomers?

Why baby boomers anyway? Because many in this generation have sizable wealth through savings, real estate assets, financial asset earnings, stock portfolio growth during the ten-year bull market, and some still work and own companies.

A Freddie Mac survey discovered that as a whole they can’t afford to own and don’t like all the financing costs of mortgages, taxes, and fees. Selling then renting avoids the mortgage refinance charges.

They’re financially stable, able to pay a decent rent price, and they like amenities if you have them to offer. Your goal is to rent to the most stable, willing to pay, agreeable tenants who don’t destroy your assets. Many want to be freed of the work of their aging home. They want something better.

It’s hard to beat baby boomers on any measure, except for executive old Millennials who might have kids, but how many of them rent?

A Transamerica Center for Retirement Studies revealed that 92% of retirees say they are generally happy and enjoying life while 84% have a strong sense of purpose. And there are no late night parties, fights or kids destroying your appliances and doors/windows.

And if you manage properties in Florida, Texas, Costa Rica, Hawaii or Mexico, they are very interested in these southern destinations.

They Know Buying isn’t a Good Value Proposition

Boomers understand the buy vs rent comparison. The preference to buy has many flaws in it. For one, real estate may be grossly overpriced with unbearable taxes, fees, and financing costs. And a construction boom with lower interest rates could flatten real estate appreciation.

Houses come with many costs and work that at this point in their lives, they don’t want. They dislike cutting lawns and pruning vegetation, cleaning gutters, shoveling snow, and repairing doors.

Baby boomers want carefree living, which creates just one strategic angle for you to make an impact on their choice. Your property management services and maintenance services will be of interest to them.

One study found that baby boomers are willing to pay more for rentals with all the right stuff. What if your rentals were to meet all their requirements?

What Should Your Value Proposition offer the Boomers?

long term leases to give them the security they won’t be sales-evicted or otherwise
smaller houses/bungalows consistent with a more minimalist lifestyle
a multifamily development with attractive amenities in convenient location near shopping and parks
provide landscaping, trees, flower gardens, lawns, fountains, a deck to entertain friends and family
fitness centers, swimming pools, hot tubs, community clubhouses
secured garages, assigned parking spaces, electric charging stations
gated communities, security guards and 24/7 services
bungalows with just the essentials, but nice, modern appliances and weatherproofed
be pet friendly
be mobility accessible
safety, convenience, responsive service, and reliable technicians they know by name
common leisure areas where they can casually meet and socialize
hardwood floors easy-to-clean, energy-efficient fridges, washers and dishwashers
services including grocery delivery, dog walking, exercise classes, ride sharing
yes even tenant apps where they can pay rent, ask questions, and get in touch with you

Your Strategy to Generate Lots of Quality Baby Boomer Rental Prospects

Aside from the amenities, services, and location, you’ll want to provide a tenant app/portal where your tenants can speak with each other, pay their rent, access documents, and reach you immediately.

That means a property management platform that offers a tenant portal, document management, communications tools, and payment system is wise.

A platform that has a built-in web marketing platform is very smart. Your vacancies of course can be displayed well, but moreover, your message of value can be made always visible, 24×7 to remind them of the glory of living in the house, apartment or development.

Marketing is Communicating Value and Credibility

The biggest failing of property management companies is neglecting marketing, advertising and promotion.

Your website marketing site helps you build a crystal clear brand — which is important to baby boomers, who grew up with major brands. When they see a quality, respectable and confident brand, their mind will open to your value proposition.

ManageCasa not only provides the tenant serving digital management tools they want but we also offers a marketing website integrated into the platform. Your communications app will help move them to your marketing website where you can generate excitement about lifestyles, parties, association meetings, build your brand and confidence in your company.

Your rental management strategy should be targeting the cream of the crop from every age group.

Try ManageCasa for 14 days and experience a next-generation property management software.

Further resources/tips on reaching baby boomer audiences:

Marketing your rentals from the Joseph Group: thejosephgroup.com/blog/how-to-market-rentals-to-baby-boomer-and-millennial-tenants-kitsap-county-property-management
Attracting Boomers by RemoteLock remotelock.com/multifamily/6-tips-to-attract-baby-boomers-to-multi-family-housing/
5 Tips for Marketing Rental Properties to Baby Boomers from NetIntegrity netintegrity.net/blog/blog/5-tips-marketing-properties-to-millennials/
The Surprising Growing Rental Market: Baby Boomers allcountydenvermetro.com/2019/05/23/the-surprising-growing-rental-market-baby-boomers/
Baby Boomers & Generation Z are Fueling the Demand for MultiFamily Property caliberco.com/baby-boomers-generation-z-are-fueling-the-demand-for-multifamily-property-rentals/
Aceable on Targetting baby boomers: aceableagent.com/blog/real-estate-trends-young-baby-boomers/

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