I loved the title of this UK blog article: Home Buying Has Peaked: Is it Time for a Rental Renaissance?
In it, the author examines the perspectives of the "new generation" of renters, in particular those of the "sell to rent" group. Although there are some differences in the location-specific forces that influence housing market, I agree with the author that there is a new "breed" of renter, and a growing opportunity for those involved in the rental market, if they can innovate and embrace.
The housing crisis has produced a renewed interest in renting, for some by choice and for others by necessity. And, the impending U.S. mortgage reset schedules will force even more former homeowners into the rental market (PropertyManager.com - Rental Housing and Real Estate Marketing Trends for 2010
). However, at present, there is still a high vacancy rate in some areas, particularly in the apartment market (Rising Apartment Vacancy Rates Could Threaten Regional Banks
"What's driving the vacancy rates? Several things:
* As long-term unemployment continues, people are moving in with families and friends;
* Younger workers are living with their parents while they look for jobs;
* Older buildings face heavy competition from new construction, which includes both new rental apartments and condo units that did not sell and were converted to rentals. In fact, Reis found that 120,000 new units came onto the market in 2009, the largest number since 2003."
So, given the current statistics, is it time for a "Rental Renaissance?" According to Dictionary.com, renaissance
is "a renewal of life; vigor; interest; rebirth." How can the rental market be transformed in order to embrace the needs of the growing number of "sell to rent" prospects? By adopting and enacting the traits of an "Ideal Renaissance Man
6. Talent / Skill
8. Strength / Determination
9. Financial Honor
By embracing these characteristics, and by finding ways to differentiate your rental property(ies) and the quality of property management service you offer, you will attract the discerning "sell to rent" tenants. You can be a "light" to those who have been stressed by the housing crisis, offering an attractive housing solution.
What are you doing to differentiate yourself in the current market and to prepare for the coming flood of renters? How can you make it more attractive to rent from you, rather than choose to live with friends or family?