Rental demand is growing among Americans aged 55 and above. This is a movement that is expected to continue as Baby Boomers age.
So the question evolves: how will you capture a share of this market?
Investors, sponsors, and property managers need to understand what older renters want from their apartments. One of the challenges is that the demographic of renters aged 55+ is remarkably diverse. There is no particular “renter profile” for this age group. The demands of someone 55-years- old looks a lot different than someone 80-years-old.
Research reveals a few things that older renters have in common, at least in terms of what they want out of their apartment -- including property upgrades that will make your asset more appealing to renters as they get older.
1. Accessibility.
Older Americans seek homes that are effortless to get in and out of. Dwellings with extended driveways or multi-level entrances can be challenging for older adults to navigate. To improve the lure of your property, offer parking as near to the entrance as doable. Be sure walkways, the route itself, and any bricks and pavers are as level as feasible.
This is true for decks, as well. Raised decks or grand front porches may look nice, but they are not exceptionally practical for older adults. Instead, try to keep outdoor patios level with the adjoining indoor rooms.
If space allows, install an ADA-compliant ramp. This will draw a larger share of renters who may be desiring a home where they can age in place. You get the added advantage of appealing to disabled residents of all ages.
Lastly, consider widening doorways. This is especially advantageous for residents whose mobility may be constrained by a wheelchair or walker. At least 36” is needed for wheelchair access, though 42” is preferable.
2. Inclusive Rents.
Many of today’s renters aged 55+ have owned their own homes before. They are wary of the upkeep and maintenance required, often a driver of downsizing to an apartment community. Older Americans are looking for units where the yard work, snow removal, and other landscaping chores are all included in the rent.
This demographic is also looking for rents that include all utilities: heat, hot water, gas and electricity, cable and Internet, even parking and laundry. That is frequently the case that after one spouse passes away, the other battles to oversee their budget or stay on top of bills. Older renters prefer units that include some or all of these services in the standard monthly rent. It is one less thing for them to worry about as they age.
3. First Floor Bedrooms and Bathrooms.
An estimated 40% of all new homes have a first-floor primary bedroom with an en-suite bath, a 15% increase over the past decade. “That is the No. 1 request these days from Baby Boomers,” says Bruce Nemovitz, a Certified Seniors Real Estate Specialist based in Milwaukee. As Baby Boomers age, getting up and down the stairs becomes more of a challenge. One spouse may sleep on the couch without a first-floor bedroom while the other is upstairs, which is not ideal. First-floor bedrooms and bathrooms allow people to age in place.
Be sensible with upgrades if you are preparing to add a full bathroom on the first floor. Install grab bars in the shower and next to the toilet. Consider adding a comfort-height toilet that is easier for older adults to get on and off. A walk-in shower with bench seating is ideal. Otherwise, be sure the tub has a swing door to allow easy entry and exit.
4. Room for Guests.
Folks who have hosted their children, grandchildren, friends, and distant family at their homes over the years may be apprehensive about downsizing. They worry that if they sell their longtime family home, they will not have room for people to stay. Typically, older Americans are looking for properties with at least a second (if not a third) bedroom that can be used as an office or for visiting friends and family.
5. High-End Finishes.
Many Baby Boomers are accustomed to high-end finishes in their homes, and they are looking for the same level of quality when they downsize or begin renting. Kitchens and bathrooms must have a modern, sleek feel. Consider investing in high-end amenities such as wine refrigerators and automated window coverings.
6. Better Lighting and Larger Windows.
Lighting becomes even more critical as people age. Proper lighting is not just an option—it is a safety measure for some. Motion-sensor lights are perfect for driveways, entryways, hallways, and other common areas. These lights brighten up an area sans an older adult fumbling through the dark looking for a switch. Inside, add multiple light switches to reduce the number and length of trips needed to turn a light on or off.
Consider investing in more oversized windows if you are about to embark on a renovation project. More oversized windows will increase the amount of natural light that the home gets.
7. Space to Gather.
Older adults live longer into retirement and increasingly place a high priority on remaining social. To lure renters aged 55+ to your property, consider incorporating various spaces to gather. This could be at the unit itself: open floorplans with combined kitchen/living areas can be fantastic for entertaining, as they are well-lit and appointed outdoor areas.
Consider upgrading lobbies, clubhouses, and pool areas if you own or manage a larger community. Host regularly programmed events that encourage residents to mix and mingle.
Investors, sponsors, and property managers are increasingly vying for their share of this market demographic. That is why it is so essential to understand the priorities of older Americans. A range of property upgrades—some simple, others not as much—can be made to improve the appeal of your property among renters aged 55+.