The American Dream – The Rules Have Changed
At one time, living the American Dream consisted of buying a dream house that you lived in throughout your golden years. The Baby Boom generation has rewritten the rules. Some baby boomers are giving up their palatial suburban houses to live a more maintenance-free lifestyle in a nice apartment, condo or penthouse that they rent. According to research, 60 percent of renter household growth is from the 55+ generation. The apartment industry is embracing the older generation and they’re not letting go. Here’s why:
Tenants Who Invest in Themselves are a Plus for Landlords
The older generation is more likely to invest in themselves. If you’re 55 or older, your children are grown and you have already made their mark in life, as far as achieving your career goals are concerned. So, you have nothing to prove, so-to-speak. Now it is time to take care of ‘you’, which brings us to the next point.
Baby Boomers Boomers are More Budget Conscious
According to a recent IBISWorld Study, middle-aged consumers are considered to be more budget-conscious and more likely to invest in “property and casualty insurance.” Renters insurance not only offers benefits for tenants, it is quite valuable for landlords because it can cover the cost of damage caused by the tenant. Plus, when your tenants are insured, it can boost your profitability by preventing expensive insurance claims from being filed by your building policy, which can hike up your premiums.
Older Tenants are Less of a Risk
Many Baby Boomers are more likely to take greater pride in their property. As a result, they will often leave their apartment in good condition when it’s time to move on. Property owners don’t have to worry about costly repairs that are often caused by younger residents.
Older Tenants are ‘There’ for the Long Haul
Younger residents can be considered ‘temporary’ because many are working towards achieving the dream of homeownership. Baby Boomers have been there and done that – older people have a common goal and that is to find a permanent place where they can live well into their golden years.
Tip: Unlike their parents, traditional retirement is not the only option. Today’s older generation don’t mind working a part-time job or launching a business venture.
Finally, an older generation may want to trade off ownership for renting if they can be certain that the property they rent is well maintained and cared for by a professional building management company in NYC. Working with a company such as Metropolitan Pacific Properties of New York City is the best way to insure that tenants will be serviced properly.
For more information, call (212) 944 – 9100.