![]() “Landlord” and “Tenant” are two of the most used words when talking about rental properties. With many stereotypes built around them, the images that those words bring to mind are not the most pleasant. Major issues will arise if we build our business of real estate around those stereotypes. The word tenant does not correctly describe who they are or what they mean to our business. Tenants are better described as customers because that is what they are to our business. They are customers purchasing our products and services. In fact, they are customers who spend thousands of dollars a year at our business. Once you start using the word customer a whole new world opens up and you start thinking like a business.
The target customer segment can depend on many factors including your rental profile (such as senior housing) and market mix. One customer segment that will become more important in the years to come is generation-Y or Echo Boomers. Echo boomers are classified as those born between 1980 and 1995. Generation-Y represents 27% of the current Canadian population. This represents the equal percentage of the populations as the baby boomers. The large size of this generation points to as large of an impact on economy and real estate as the baby boomers. The life style and priorities of generation-Y differs from their parents and previous generations. Research from the Real Estate Investment Network has ranked the housing priority of generation-Y as follows:
For many investors, generation-Y will become the main or secondary target segment. Deep understanding of your target customer will allow you to stay ahead of your competition and have a successful business. For more detailed analysis of generation-Y read the full article by Melanie Reuter (Director of Research at Real Estate Investment Network). Until next time, Rasam
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