Over the past few years, the housing market has undergone a seismic shift. Remote and hybrid work means greater tenant mobility, and higher real estate prices mean that people are delaying buying their first homes. Here’s what this means for multi-family landlords.
1. Less Turnover; More Ongoing Maintenance
Across the nation, multi-family vacancies are dropping. Multi-family tenants are generally staying longer, renewing their leases multiple times. This means that the typical post-lease turnover – repainting, recarpeting, and touch-ups – isn’t happening as frequently as in the past. But it does mean that landlords should be mindful of wear and tear to their properties throughout the duration of an extended lease. Stay on top of routine maintenance, encourage tenants to report issues, and act promptly when needed.
2. More Multi-Family New Construction
As cities focus on meeting housing demands caused by local growth and shifting housing preferences, we’re seeing development shift away from single-family homes and towards new multi-family construction. Aimed at upwardly mobile millennials and empty nesters, these tend to be elevated, highly amenitized builds offering on-site perks and opportunities to work, collaborate and socialize. Landlords or construction firms looking to compete in this market should consider location, unique on-site amenities to appeal to time-poor workers and high-end finishes that lend a boutique hospitality feel. Access to public transit, shopping and dining, and employment options are vital when choosing a location.
3. Growth in Lifestyle Renter Demographics
Renting used to be a stepping stone to the home rental, but that’s changed. Seniors and affluent workers are increasingly more likely to rent as part of a lifestyle choice. Renting gives them flexibility – they can travel knowing that their place is secure and maintained – as well as access to an on-demand community. These sorts of renters expect luxury amenities, including security systems, clubhouses, parking and bike storage, on-site concierge staff, package handling, business centers, childcare and/or doggy daycare options, dining and coffee options, and organized social activities. To meet their needs, landlords should invest in activity-specific spaces, provide a variety of seating and gathering options, and invest in landscaping and fitness centers.
4. A Focus on Wellness and Lifestyle
Today’s multi-family spaces aren’t just a roof over someone’s heads. As more and more research is conducted about the impact of living spaces on wellness and wellbeing, design trends are shifting to accommodate those needs. Finishes are shifting towards natural (or natural-looking) options, with wood and stone dominating, windows being larger, and biophilic design being everywhere. Biophilic design involves blurring the line between the indoors and outdoors and bringing greenery in wherever possible – through feature walls, terrariums, or indoor/terrace gardens. Great views matter as well, so landlords should find ways to maximize these.
Let Manders Help You Meet Your Tenants’ Expectations
The team at Manders can help with all of your multi-family property needs. Whether it’s repainting or refinishing to bring a property in line with current design trends, helping repurpose a room or space, or assisting with curb appeal, we can help. Whether you’re building from scratch, need to refresh an existing multi-family property, or just want to stay on top of your maintenance, get in touch!