What Millennial & Gen Z Renters Are Looking For And How Landlords Can Deliver

The majority of renters currently fall into the categories of Millennials or Gen Z. The median age for renters is 41, and about half of all tenants are under the age of 40. 

Recent rental data reports that 45% of all renters are Millennials, and 27% of apartment hunters are part of Gen Z. And, the percentage of renters who fall in these categories is only going to increase in the years ahead. 

Given the number of Millennial and Gen Z renters, Landlords need to be familiar with the apartment amenities that these Tenants expect so they can attract and retain younger Tenants. Here’s a guide to what Gen Z and Millennial renters are looking for and tips for how Landlords can make their units more appealing to young occupants. 

Want a quick and easy way to attract young renters? Use digital property management software to automate every step of the rental process. Create an ezLandlordForms account today to start managing your rentals like a tech-savvy Millennial or Gen Zer. 

What Defines Millennial and Gen Z Renters Today 

Before digging into what these groups are looking for in housing, it’s important to understand who is included in these categories. 

A Millennial is someone born between 1981 and 1996. They range in age from 44 to 28 and make up the largest group of current Tenants. 

Gen Z is the next generation down, and they were born between 1997 and 2012. This means they range in age from 13 to 28. They are the largest group of first-time renters and are the only group of renters who are steadily growing in size. 

Broadly speaking, Millennial and Gen Z renters are any Tenants who are 44 or younger. While there are some differences between the two groups, they share some common characteristics and expectations when it comes to living spaces and rental properties. 

The Most In-Demand Apartment Amenities for Younger Renters

Given the high and growing percentage of young renters in real estate markets across the country, investors need to be familiar with the amenities these occupants prioritize. This allows Landlords and property managers to stay competitive, attract quality applicants, and minimize vacancy costs. 

Some of the most in-demand apartment amenities for Millennial renters and Gen Z renters are: 

• Digital features for all property management tasks, including digital Rental Applications, leasing, rent payment, and maintenance requests. 
• Access to high-speed internet and reliable cell service 
• Pet -friendly policies and amenities, including outdoor space, dog parks, and grooming stations. 
• Lockers or package rooms to ensure safe and automated receipt of deliveries. 
• Wellness and fitness amenities, including outdoor space, fitness centers, and yoga studios. 
• Community spaces, including gathering spaces, remote work amenities, and coworking spaces. 
• Modern finishes in units – for example, smart apartment features, luxury vinyl plank or hardwood flooring, and updated kitchens and bathrooms. 
• Increased space to meet the post-COVID modem apartment living demands of remote work and increased living space. 
• In-unit washer and dryer, which 94% of Gen Z renters listed as a top deciding factor in a recent survey. 
• Dedicated parking spaces for cars and bikes.
• Community-focused events – for example, happy hours, movie nights, or classes – to foster a sense of community and connection among renters. 
• Security, including monitored cameras, gates, on-site security guards, deadbolts, window locks, and exterior lighting. 
• Sustainable apartment features throughout the unit, including energy-efficient appliances, recycling, and green building certifications. 
• Storage space beyond basic closets – for example, a storage unit, storage lockers, or extra-large closet spaces. 

What Are Considered Must-Have Apartment Amenities? 

The list of apartment amenities that young renters want is long. That said, it shouldn’t feel overwhelming to Landlords. You don’t have to offer all amenities; you just need to be familiar with growing renter preferences and prioritize the amenities that have become must-haves in modern apartment living. 

The apartment amenities to prioritize to attract young Tenants and increase Tenant retention are: 

1. Effective security features. Both Millennial and Gen-Z Tenants prioritize safety and pay attention to safety features when searching for apartments or single-family homes. Your units need good locks on all windows, deadbolts for doors, and exterior lighting. When possible, add security gates and security cameras. Also, make it easy for Tenants to get in-unit security systems. 
2. Laundry. Convenience and flexibility are more valuable to young tenants than luxury apartment amenities. High on the list of convenience features is in-unit washers and dryers, which make life easier for young tenants with long work hours and busy schedules. 
3. High-speed internet. With more Millennial and Gen-Z renters working from home, high-speed internet is a non-negotiable. This is the most sought-after of remote work amenities. 
4. Pet-friendly amenities. Nearly 60% of all renters have a pet, and a high percentage of pet owners are young renters. This means it’s vital for Landlords to allow pets in their properties and to make it easy for Tenants to have pets. Competitive pet deposits or pet fees, easy access to outdoor spaces, dog parks, grooming stations, and pet-proof units with durable and easy-to-clean materials help attract and retain tenants. 

How Landlords Can Prioritize Amenities Without Overspending

As rental markets get increasingly competitive, it can be tempting for Landlords to add every new or trending amenity to their rental properties. Avoid his temptation because it can lead to overspending, decreased cash flow, and overpriced units. 

If you end up with a negative cash flow or having to raise rent prices above market levels, your updates or luxury apartment amenities will hurt your rental business. 

Avoid these mistakes and be strategic with apartment amenities by: 

• Creating a plan before adding any amenities. Know your target Tenant and their renter preferences. Do plenty of research into trends of modern apartment living and competitors’ amenities. Research the ROI of amenities and set a target ROI – 8 to 12% a year is a good target return. 
• Create a detailed budget for each amenity. Don’t offer it until you’ve calculated all costs and returns. 
• Prioritize a few high-impact amenities. Start with no more than 3 amenities that have an above average impact on property value or tenant retention. 
• Track the performance of your amenities and use the data to drive future decision-making. Look at rent increases, turnover rates, vacancy rates, and operating expenses. 

Amenities That Increase Rental Value and NOI 

When planning for upgrades and added amenities, Landlords need to prioritize high-impact features. These are amenities that have the largest impact on a unit’s value and net operating income (NOI). 

Based on tenant surveys and recent rental market research, the high-impact categories that Landlords should prioritize are: 

1. Convenience – These are any amenities that make life easier for renters. For example, dedicated parking, package lockers, smart apartment features, and electronic rent payment portals. 
2. Pet-friendly policies – Renters want living spaces where it’s easy to have pets, and the pets have a good quality of life. 
3. Wellness and fitness – Whether it’s outdoor space, yoga studios, or community gatherings, Tenants are looking for units that allow them to prioritize mental and physical health. 

How Can Landlords Modernize Older Properties to Attract Younger Renters? 

One common concern for Landlords of multi-unit buildings and single-family homes is how to modernize older properties to attract young Tenants. The good news is that there are some simple things Landlords can do to make units more attractive to young renters. 

• Upgrade the kitchen or bathrooms: energy-efficient appliances, modern countertops, water-saving features, and stainless steel appliances make a space more attractive to young applicants. 
• Replace carpet with luxury vinyl plank (LVP). This is more attractive, durable, and easy to clean. 
• Add a fresh coat of paint in neutral colors like white or grays. This brightens and freshens up spaces while also making them appear larger. 
• Improve outdoor spaces, including yards, patios, balconies, and community spaces. 
• Add energy-efficient appliances and systems. 

Use Property Management Software to Improve Tenant Experiences 

One of the best ways to attract Gen Z and Millennial renters is with digital property management systems. ezLandlordForms makes it easy for Landlords to cater to young renters with: 

• Digital Rental Applications & Tenant Screening 
• Online Lease review, signing, and storage
• Electronic rent payments

Make your life easy and attract quality Tenants with good property management software. Create a free account today to learn more about how ezLandlordForms can help you get the most out of your rental properties.