Aging and Renting: A Growing Trend Amid Housing Challenges
According to recent statistics, the number of renters aged 65 and over is expected to rise significantly in the coming years. As people live longer and housing affordability challenges persist, more older adults are having to rent rather than own homes. An article by 1news says we aren’t ready. Full article in this link: Landlords aren’t ready for ageing tenants – so, what do we do now? (1news.co.nz)
Perennials make great tenants!
Older tenants often bring a level of stability and reliability, they tend to stay in one place for longer periods, reducing the cost of tenant turnover. This stability also translates into more consistent cash flow for property owners. Retirees are often more financially stable, drawing from pensions, retirement savings, or other secure income sources, making them more likely to meet their rent payments on time.
Older adults tend to take good care of the properties they rent. This sense of pride and responsibility can mean fewer maintenance issues and less wear and tear on the property. And retirees may have fewer parties or large gatherings, leading to quieter, more peaceful living environments, and therefore happy neighbours.
What can you do to attract such a great tenant?
Invest in rental properties that offer comfort, convenience, and accessibility, such as single-level 1 or 2 bedroom homes, avoiding stairs or complex layouts. Proximity to essential services like healthcare, shops, and public transport is also a key consideration. Many retirees seek a quiet, safe neighborhood and low-maintenance outdoor spaces, perhaps even arrange to have the lawns mowed. Any amenities like walk-in showers, grab rails or raised garden beds can be highly appealing for this demographic.
Who pays for modifications?
It doesn’t have to be the landlord. Government funding is often available to assist in making necessary modifications to rental properties to accommodate elderly tenants. These grants or subsidies are on a case by case basis but can help cover the costs of accessibility improvements such ramps, handrails, and bathroom modifications like walk-in showers.
Stay ahead of the game!
With the lure of overseas horizons dwindling the pool of working age tenants, maybe it is time to consider how your investment might ride the silver wave?
