If you’re curious about the concept of “Guppies” (and no, we’re not talking about the aquatic creatures), and how they relate to the real estate industry, allow us to shed some light on it.
The term “Guppies” specifically pertains to tenants within the age range of 18 to 39 who foresee themselves remaining in the rental market for an extended period.
The nickname “Guppies” originates from the phrase “Given Up on Property.” Essentially, Guppies are individuals who don’t envision homeownership as a viable option for them in the foreseeable future, spanning at least the next ten years.
For some, this decision is largely influenced by the exorbitant costs associated with purchasing a property and the challenging task of assembling a substantial down payment.
However, for others, it’s a lifestyle choice. Certain Guppies are averse to committing to a 40-year mortgage and the myriad responsibilities that come with owning a home, including the upkeep, repairs, and maintenance.
Furthermore, there’s a segment within this group that prefers to rent in a location they adore rather than relocating to a more affordable but potentially less desirable area.
So, just how substantial is Generation Guppie?
According to Zoopla’s estimates, a significant 42% of individuals under 40 in the UK who haven’t yet acquired property have no immediate plans to do so within the next decade, hence their classification as Guppies.
Notably, the property platform also highlights that 40% of Guppies boast an annual income exceeding £60,000.
But the burning question remains: Are Guppies desirable tenants?
In our capacity as letting agents, we emphasize the importance of landlords adhering to a rigorous tenant selection process, which includes thorough credit and reference checks.
Nevertheless, considering that a substantial portion of Guppies boasts healthy incomes and harbors a long-term rental mindset, they may indeed be ideal tenants for the discerning landlord.
So, what are the key preferences of Guppies when it comes to rental properties?
- High-Quality Dwellings – Guppies are in pursuit of a place they can truly call home, not just a temporary stopgap. Property maintenance and a contemporary interior hold significant importance for them.
- Prompt Communication – In the digital age, the younger generation, encompassing anyone under 40, is tech-savvy and gravitates towards communication channels like WhatsApp. Timely responses to queries and concerns are something they anticipate.
- Pet-Friendly Accommodations – While many in Generation Guppie might not have children, they may be pet enthusiasts or already proud pet owners. Flexibility regarding pet ownership policies is viewed as a definite advantage.
- Maintenance Responsibility – As mentioned earlier, some Guppies are drawn to renting due to the freedom from the financial burden and stress associated with repairs and maintenance. This doesn’t imply a lack of concern for these matters; rather, they expect landlords to be diligent and proactive in addressing them.
For help managing a rental property and sourcing good-quality tenants, contact us today.
