Although I’m an ardent enthusiast of cooperation, I’m also a multi-decade-longtime instructor of how to create meaningful, competitive advantages. In fact, you can be both cooperative and competitive. Obvious competitive advantages include having honed your skill sets, mastered the use of cutting-edge technologies, and having outstanding people skills. Combined, you’ll be in a league of your own.
As the adage goes, “knowledge is power.” If that knowledge is put to effective use it can also lead to increased prosperity. An example involves the power of effective marketing. If you’re marketing to the demographic groups that need your services the most you’re more likely to get the results you’re looking for. Consider the millions of adult children living with their parents today. In fact, why not make both these groups, those living with their parents and the parents too, your target demographics. Some historically astounding insights make this choice more relevant than ever.
According to Pew Research Center, for the first time in more than 130 years, adults ages 18 to 34 are more likely to be living with their parents than with a partner or a spouse. This creates both a dilemma for the parents and an opportunity for property managers. The parents may need the equity in their house to allow them to retire, but can they with an adult child at home?
The answer may be “yes!” if an astute property manager can help the parents find a long-term rental unit that’s big enough. The parents can sell their house; capture a tax-free next egg, and so much more. If they’re going to let an adult child or children live with them anyway, they can offer to share both the rental residence and the cost of the rent itself. It’s a win-win that may be more affordable than owning.
The report focuses on the older members of the demographic group referred to as “millenials,” those ages 25 to 34. Nearly 20% are living with parents. That’s the highest percentage on record.
This unprecedented situation is exacerbated by the recent challenges to find good paying jobs and the rising number of young adults who are going back to college. Is this a problem or a great opportunity?
If you are looking for a competitive advantage as a property manager who thinks outside the box, your imagination should be lighting up with ideas. Let’s look at it from another perspective.
A survey by the real estate brokerage company Redfin found that one-fifth of homeowners ages 55 to 64 have adult children at home. This is a cumbersome incentive to hang on to larger homes.
Many of these baby boomer homeowners are nearing retirement or have been forced circumstantially into early retirement. They need to unlock the value of their large, expensive-to-maintain homes.
You, as a caring, knowledgeable property manager, can show them how they can do just that. Start by showing them the financial advantages of renting over the many hidden costs of continuing to own. This is just one example of how to give yourself and your management firm a competitive advantage. Once you awaken to the possibilities, today’s world can become a fruitful field waiting to be gleaned.