Who should now rent a property?
There are so many good reasons today to make an Real income investment.
And there are also many types of tenants looking for houses for rent.
According to statistics, in general, Italians have increasingly ambition to find a better home ... and to choose the rent even more buying!
In this article I show you what in particular the categories of people who have higher propensity to seek apartments for rent, driven by the fact that the location better reflects their needs and their lifestyle.
This trend characterizes 2017 and it is likely to increase in the coming years.
As a real estate investor can increase kills possibility of gain realizing the long-term operations designed precisely for these recipients.
here are the 3 types of tenants to bet if you want to earn with real estate income.
1. Students
Students are today a market segment that you can no longer overlook.
Indeed, the student population continues to grow and consequently increases the housing request for rent.
This market niche is considered by real estate investors to be new profitable sector to bet on, to carry out long-term operations with attractive returns and continue over time, with a profile of very low risk.
In support of the trend I'm talking to you about there is one specific study presented by the international company JLL. According to this research, the sector of “student housing” is reaching its maturity stage in several European countries, including Italy.
Of course, each country is at a different stage of maturity, but what unites them is that all, each with their respective university towns, they have to adapt their real estate offer to respond to the growing demands of students.
What students are looking for in the real estate market?
Put yourself in the shoes of a student and find his ideal property.
The most important factor for a student is the nearness a University campus. It would be preferable for a student to be able to achieve it standing in a few minutes, or quickly and easily by public transport (with stops close to the accommodation).
If you want to invest in income-producing properties for students, you can buy units of big cut, make several rooms out of it e to rent per individual rooms. In fact, many students prefer to live in a shared apartment to share expenses with their roommates, but still have your own private room in which to study.
With this type of investment you can also get a higher gain compared to that generated, for example, by the rent paid by a family.
In short, students are a potentially very lucrative market. But these are always real estate transactions that you need to be able to carry out well, without mistakes, knowing the tricks of the trade and the market you want to address.
2. Millennials
Here is another category of tenants that you could consider in your investments.
The “Millennials” are all those born between the 80s and the 2000, so the generation that found itself in the thick of the economic crisis, with a high unemployment rate.
It is the young people who leave the family home a 30 years and what are forced to emigrate in other cities and regions looking for work.
This part of the population has moved away almost naturally from the idea of a permanent job and has a vision of home ownership that is different from that of the previous generation.
I Millennials, indeed, they do not look at buying a house as a fundamental choice for life and for the future, like their parents did, and still consider going to live in rent.
According to the Tecnocasa analysis today the demand of Millennials for rentals and for purchases is almost the same: the 47,9% choose therent and the 52,1% choose thepurchase. And when they buy, they often do so with the help of their parents, which contribute substantially to the expenditure or even provide for it entirely.
Why Millennials choose to rent? Both for economic reasons and for life needs.
First they don't have the economic availability to support the purchase of a house and many times for the same reason they are unable to access mortgages.
Furthermore, often they are in a certain city just to study reasons or work, therefore they are ready to leave that place when they finish their studies or find a new job opportunity.
What Millennials are looking for in the real estate market?
I'll now give you some statistics to make you understand how you can invest for income for this slice of the market.
Always according to Tecnocasa's investigations, the 45,2% of Millennials who go to rent do it for housing choice, the 39% for work reasons and the 15,8% for study purposes. According to the data, Furthermore, the most requested housing size is the two-room.
You can therefore clearly see three different sub-categories of potential tenants: residents, workers e students. Each of these types has its own specific needs in terms of location, size of the house, available budget for the lease, ecc.
Also in this case you must have abroad knowledge of the market who you want to contact to carry out real estate transactions with high gain e low risk.
3. Single
Let me introduce you to another interesting market segment if you want to generate income.
Here we are faced with a distinct type of tenant on the basis of his sentimental situation, being single, then with specific needs different from those who live as a couple.
Singles also need a home to live in, where to retire after a day's work. But the "nest" in which he lives must respond to habits and features different from those of one couple married or cohabiting, or a couple with children.
What are singles looking for in the real estate market?
According to a 'RE/MAX survey singles much prefer renting.
These singles looking for houses for rent they especially choose the city, where the attractions and possibilities for recreation are greater. When they opt for the province, it is because they have an available budget that does not allow them to live in the city.
The 33% of singles looking for a home wide and comfortable, for this reason, if he doesn't have enough money, he goes to live in places far from the center, while only the 17% he does it because he loves nature.
But there is also an intermediate sub-category: 7 single su 100 they choose to work in the city and live in cheaper areas, moving every day by public transport.
According to research by Mitula, Furthermore, a single is willing to make an even considerable economic effort to get for rent an apartment, sometimes spending until the 30% of his salary.
A Milano, in particular, there is a high percentage of singles who spend up to 70% of your earnings, paying a rent that is around 1.100 euro.
As you can see in the statistics it is possible to find many interesting ideas to make reflections on long-term real estate transactions.
As with any income transaction, you have to do all these steps properly: from the choice of zone strategic and ofimmobile right to the selection of tenants paying (and take charge of any insolvencies), from solving legal problems, tax and technical up to the management of utilities, maintenance and possible damage.
For each of the three categories that I have listed for you, more, devi know very well the specific market segment, with his needs and its sequels changes.
