6 reasons why tenants leave their rental property

6 reasons why tenants leave their rental property

A survey found that only 36% (or renters) plan to remain in their current rental until mid-2023. This statistic is alarming for landlords who want to keep their rental properties occupied.

There are certain things that landlords cannot change to keep tenants for ever. Knowing why tenants leave can help you predict their stay. This knowledge can help you keep your property profitable and occupied.

What Renters are Most Likely To Move?

In the period between mid-2022 to mid-2023, 30% of tenants plan to leave their current home. Another 33% are undecided. Tenants are more uncertain about their decision to move or stay as they consider factors such as rising rents and the cost of moving. Renters under 30 are more likely to be affected by this.

The demographics of those who are most likely to leave within the next 6 months is shown below:

  • Young adults who are employed full-time
  • Couples with children and families
  • Residents of high-end rental properties and single-family homes
  • Households earning more than $150k per year who were able to save for a downpayment over the past year
  • Renters who have a strong desire for home ownership

We’ll unpack these statistics and explore the six most common reasons why tenants leave their homes, as well as what landlords can to do prevent this.

Renters’ top reasons for moving out

First, home ownership

Buildium’s Industry Report shows that 35% renters considering moving are planning to buy a home. This is especially true for young couples and families. Many renters save for years to pay a downpayment for their own home due to the cultural importance placed on owning property. Tenants will take advantage of the right market conditions or a major life event, like a new job or family member, to jump onto the ladder.

#2: Affordability

Many monthly mortgage payments in comparable neighborhoods are lower, and this often combines with a desire to own a home, which encourages renters. Renters who are considering a move cite affordability, regardless of whether they are struggling financially or seeking better value, as their primary concern.

Location #3

Renters may also move because of changes in their job or family obligations. Renters may move for a variety of reasons, including a change in school districts or for their own personal reasons.

Amenities

Amenities are one way a landlord can ensure that tenants stay. 22% of renters are willing to move to a new rental that has features they find more appealing or more suited to them. The amenities are what attracts young adults to move, closely followed by renters of middle age with children. Pets on the property are a big attraction, especially for young families. Landlords need to understand what amenities tenants are looking for, and what their property has to offer.

Space #5

A major reason for tenants to move is the lack of space. 18% of tenants may decide to move within the next year due to changing household needs. Growing families may require more bedrooms. If you are starting a new job from home, it may be necessary to have a permanent office. While you can’t change the size of your rental property–at least without major renovations–landlords can look to invest in properties of various sizes in similar neighborhoods. If a tenant moves, they may be able to settle in another of your properties.

#6: Experience

Tenants are also tempted to move because of a bad experience with their landlord. This is a situation that landlords can control. By using proven methods for keeping great tenants, and maintaining cordial relationships with these renters, landlords will be able to retain the 14% who are thinking about moving because they’re not satisfied with their current rental.

Retaining your Tenants

There’s little a landlord can to do when a tenant wants to purchase a home or needs to move. However, there are ways to improve amenities, the space and the experience that tenants have in your rental property.

A property management partner can help landlords improve their services and maintain good relationships with tenants over time. Working with the right property management company can also help you determine where to invest to increase your tenant retention rate.

You may also ask tenants to fill out a survey at the end of their stay in order to get feedback about how they felt. Understanding why tenants move out of your property is extremely important. You can then adjust your future real estate strategy to retain good tenants.

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