Who is my Renter?
Understanding the differences between property owner and renter is vital to making the right decisions in real estate investment and rental property management. With the help of the Census Bureau’s American Community Survey (ACS), a survey that is distributed to millions of households every year to collect data, we are able to draw conclusions and highlight some of the differences that will help you make informed decisions in your real estate investment venture.
According to the ACS, detached single-unit homes composed 27.4% of rentals in 2010. That number has since increased to 28.8% in just three years, making the single-family rental sector the one of the fastest growing rental sectors in the United States.
Know Your Renters
This growing rental market has a few specific defining features.
They are young.
Most people graduating from high school and college and begin their first jobs often show their independence by renting, rather than buying a space. This describes approximately 11 million renters who are ages 25–34 years old who are not yet ready to buy a house because…
They have less income.
About 26.1% of single-unit home and apartment rentals are single-income households, and the median household income is around $31,888, which is far lower than the $65,514 median income of owner-occupied dwellings. This smaller income indicates that when it comes to renters…
They have smaller households
Some younger renters may take on roommates to reduce their expenses, but many of them do rent alone. This leads to one- or two-person households, whereas owned homes often have family-sized households of 2–5 occupants.
Knowing your clientele is the first way to get their attention, and it also lets you know what to expect when you search for a renter for your property. Targeting your rental approach to single or small-group renters between ages 25 and 34 who are earning low to medium incomes can help you fill your properties faster, keeping your own income stream steady and flowing.
Don’t let the elements leave you high and dry — get the right coverage for your rental property. Do your research to find the right insurer and policy for you, and consider getting referrals from other property owners or insurance agents.
Who Are You Renting To | Rental Property Management Software
Understanding your audience can help you maximize your real estate investment by targeting the biggest group of renters (young people with single incomes) to rent your properties. Real estate investment, property rental, renters, rental property management, single-family renters, single-unit homes