One of the most important determinant of how successful a real estate investor you will be is the tenants that you will opt for. In recent years everyone in the real estate investing business has been trying to attract college students and millennials as two preferred cohorts of tenants. This leaves another very important group behind: the retirees. Actually, it is easy to argue that the elderly are the best investment property tenants although they do require some additional considerations. Let’s see why every landlord should aim to attract retirees and how to make the best investment property for them.
Why are Retirees the Best Investment Property Tenants?
1. Retirees are wealthier
Although the elderly have stopped working, they tend to be wealthier than younger tenants because they have had many, many years to make and save money in order to spend their retired years in a comfortable environment. This means that with retirees, you could possibly go for a slightly more luxurious rental property, which is likely to be more profitable, on average.
2. Retirees have a stable source of income
Most elderly people – or at least those who look to rent a property – receive a monthly retirement payment, which is guaranteed. With older people as tenants, a landlord does not risk to face delayed rental payments, which means reliable rental income.
3. Retirees have low turnover rate
Once elderly people have found the best investment property to rent, they are not likely to move out. Actually, the move rate for seniors is only about 5%, which means that you as a landlord will not have to look for new tenants every few months, meanwhile losing your rental income.
Related: 7 Tops to Avoid a High Rental Vacancy Rate
4. Retirees cause less damage
Generally, old people tend to be quiet and attentive. Since they don’t live with small children or numerous pets and don’t throw crazy parties, the damage they would cause to your income property would be minimal.
Whether you are a new real estate investor just entering the world of real estate investing or an experienced landlord, it is straightforward to see that retired people make the best investment property tenants, much better than younger individuals or families.
However, as a landlord, you should take into consideration the fact that older tenants have certain needs when it comes to a living place, and you should be willing and ready to accommodate for these needs to attract this cohort of tenants. No worries, none of the requirements to make the best investment property for retirees is excessively complicated or expensive.
Related: Best Places to Invest in Real Estate: Understand and Follow Retirees
How Do You Make the Best Investment Property for the Retirees?
1. Safety is a must
If you want to prepare the best investment property for the elderly, you have to consider both inside and outside safety and security. For example, when it comes to inside safety, choose tiles that don’t become slippery when they are wet. Or make sure that the water heater will not become overheated if it is left on. With regards to outside security, choose a safe neighborhood. As usual, location is the key to a profitable rental property and a successful real estate investing business. Consider an apartment in a building with a security guard or – alternatively – a single-family home in a complex with a guard. In addition, you could install an alarm system. All these accommodations to make the best investment property for retirees would pay off as your tenants are not likely to cause much trouble.
2. Single-story properties are preferred
Most elderly tenants would go for a single-story property because accessibility and maintenance are easier. So, if you are looking for the best investment property to rent out to retirees, it is advisable to go for an apartment or a one-floor single-family home. However, there are still some older people who look for multi-story homes to provide space for visiting children and grandchildren, so don’t rule this option out.
3. Accessibility is crucially important
The best investment property for retirees must be accessible. Retired people generally don’t like to drive and definitely can’t walk for too long. First of all, the ideal income property in this particular case needs to be within a short walking distance from public transportation and shopping areas as well as preferably close to hospitals and public parks. Second, the home itself needs to be easily accessible. If you decide to go for an apartment, there needs to be a reliable elevator. If you, on the other hand, choose to buy a single-family property, make sure there are no stairs that lead to it.
4. Maintenance should be easy
Although elderly people have a lot of free time on their hands, for obvious reasons they find it hard to do much work related to cleaning their home and taking care of it. Thus, the best investment property for them would be something rather compact and not requiring, with furniture that doesn’t need much cleaning. Also, the best investment property to accommodate retirees is not likely to have excessive green spaces around and/or a swimming pool.
5. Some amenities are desirable
In order to prepare the best investment property to rent out to retirees, you might need to add some extra features. For instance, bathroom grab bars will not cost you much, while they will make your rental property very attractive to older tenants.
6. Assistance services are very attractive
In addition to installing a few amenities, you could also offer a range of assistance services as part of the monthly rent which will help your elderly tenants take care of their home. For example, you can hire a cleaning company to clean your rental property on weekly basis and contract a few handymen to be available as need arises. Such additions will really make your elderly tenants happy, and you will add their cost to the monthly rent, so you will end up paying nothing.
Related: 6 Ways to Get Your Investment Property Rented
Whether you are a new or an experienced real estate investor, you should seriously consider the option of renting out to elderly people. They are simply the best investment property tenants a landlord could ask for. Use the hints above to buy and prepare the best investment property to serve the needs of retirees, and you will not regret the extra effort. In your search of an income property, don’t forget to check out Mashvisor for thousands of properties across the US.