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MULTICULTURAL FAMILIES HAVE DIVERSE HOUSING NEEDS

Nearly one million immigrants entering the U.S. annually are helping to
drive the current real estate boom plus there are over 78 million
multicultural Americans already here. Apartment house owners and managers who take the time to find out the needs and wants of these multi-ethnic families will find they will have an advantage over their competition, according to Michael Lee, professional speaker and author of “Selling to Multicultural Home Buyers.” (Oakhill Press, 1999)

“You can rent more apartments and homes to people from other cultures if you would just take the time to learn what these potential tenants,” said Lee, who has been a real estate agent and broker since 1977. “Managers need to ask people about their beliefs and cultural background in order to find out their unique needs to tailor their properties to meet them.”

Immigration from Latin America, the Pacific Rim and the Middle East is
proceeding at an unprecedented rate. The immigrant influx, according to
Lee, covers all areas of the country. He notes that technology corridors
are a top draw for many highly educated immigrants. Accordingly, the
Charlotte, Atlanta and Washington-Baltimore metropolitan areas are
attracting increasing numbers of Asians, Middle Easterners and Indians.

Large Vietnamese communities can be found in Arizona, Idaho and Houston, and Southern California and San Antonio host large Hispanic populations. More African Americans are moving to southern states than at any time since the emancipation movement.

What do these trends mean for rental property managers and owners? It means that you must know who their tenants are, because such simple
things as straight lines, colors and numbers can be the deciding factor on
whether or not people from diverse cultures rent from you or not. Depending on the culture, some amenities can be lucky and therefore attractive while others may be a turnoff.

For example, Lee notes that many Asians who are practitioners of Feng Shui favor a certain home orientation, room layout and appliance placement. Many Asians prefer slightly curved rather than straight walkways leading to the home; straight walks are believed to cause bad luck.

Asians don’t want to rent homes or other dwellings that stand out from the crowd, preferring to fit in with their neighbors. “By making some very
simple and minor adjustments for the culture that are common in their home communities, you can make your rental units much more attractive to this huge group of potential tenants,” said Lee.

Conversely, African Americans would generally favor apartments or homes that are distinctive and unique. “When marketing to this segment, something as simple as a brick facade can make a building stand out. You don’t need any major adjustments in floor plans,” observed Lee. He does say that some African Americans would prefer to rent a unit with a formal dining room for serving family dinners.

Hispanics tend to prefer units with large numbers of bedrooms so that
friends of the family can stay for extended periods. For this market group, Lee says that smaller bedrooms with a bathroom are favored to properties with large rooms without the bath.

A top priority for Vietnamese families is a high-powered fan in the kitchen vented to the outside. “This is the No. 1 option Vietnamese families want in a home or apartment because they cook a lot of fish and very pungent food and want the smell vented to the outside,” said Lee.

Color schemes need to be adjusted for different cultures. Green is sacred
in the Middle Eastern community and white is a symbol of bad luck in many Asian communities. Red is viewed as a sign of good luck in the Chinese and Japanese cultures, so crimson or plum colored carpeting might be preferred by these groups.

Numbers are another factor to consider. While 13 is regarded as unlucky by many Americans, in several Asian countries, the number four is unlucky because it sounds like the word for “death” in Korean, Japanese, and many Chinese dialects. Just like there are no thirteenth floors in buildings America, there are no apartments numbered four throughout most of Asia and you may want to follow this tradition if you have a large number of Asian tenants.

Rental managers should be aware that although you may have a fixed rent on your units, immigrants from other countries may want to negotiate the price. Haggling is an age-old custom in many countries outside of North America and you may want to price your apartments to allow for a little bargaining room. Such items as utilities, parking and other amenities can all be subject to negotiation with people who come from bargaining countries.

If you don’t negotiate the price of your units consider the following:

“Managers need to explain to the tenant that they’ve rented all their other
apartments at their asking price, and, in order to save face with other
tenants, they have to lease the property at the same price. The concept of “saving face” or honor is something all cultures from around the world
really understand,” said Lee.

Lee also warns that newcomers to the United States may not have had the opportunity to establish a checking account or may be more comfortable giving cash for their rent payment. If this is the case be sure to obtain a large enough bond on your property manager to cover this possibility.

One final point: Many cultures don’t believe that signing a lease contract
ends all negotiations, so wise managers and owners will always save
something for the end. For example, Lee says if a parking space is included in the monthly rent you may want to wait until all other details have been agreed upon before mentioning this fact. Remember that good negotiators only get that way with constant practice!

Is it considered discrimination if one markets different to different
cultural groups?

Fair Housing Law says that you may not discriminate against any one of the "protected classes" such as race, color, religion, gender, disabilities,
familial status, age or national origin. The Americans With Disabilities
Act further goes on to state that we should make accommodations for those who are "differently abled".

The law says that you should treat people fairly, not the same. Just as you would not simply hand a rental agreement to a blind person to "read" you can make accommodations for anyone who has different needs from the majority of tenants.

However, if you are going to ask about culture needs you should ask every potential tenant regardless of background. You can simply ask, "Do you have any special needs that affect your rental of this property that you would want us to consider?" You'd be surprised how many unique needs and beliefs European Americans hold. For instance, when selling a home many Catholics believe it is good luck to bury a statue of St. Joseph face down in the front yard. Likewise, some people here will be reluctant to rent an apartment numbered thirteen. Would it be discrimination to simply skip this number and give the unit the number fourteen instead? Obviously, you should seek appropriate legal advice for the specific laws
that apply in your area.

Lee concludes by saying that going to the trouble to make your rental
property more attractive to people from diverse cultures can be well worth the effort. This is due to the fact that these folks tend to move less
often being less familiar with rental options than other tenant groups and
they often refer friends and family to the same owner or manager. These
factors can reduce turnover and advertising expenses as well as vacancies.

Michael “Soon” Lee, MBA, is a nationally recognized professional speaker and author on negotiating and multicultural marketing. He has negotiated everything from multi-million dollar real estate transactions to major motion picture deals. Michael is President of EthnoConnect™ the Multicultural Sales Solution and can be reached in the U.S. at
(800) 41-SPEAK or by e-mail at:michael@seminarsunlimited.com.

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