As a landlord, it is your desire that each and every tenant who moves into your rental property lives there for a long time to come. You make every effort to make sure that your tenants like the accommodation unit and the environment in your rental property. However, it is a fact that tenants are not permanent and they keep moving out because of many different reasons. Of course, there are families who stay put in a property for a long time if they have got their school going kids attending their classes. But you cannot say the same thing about other categories of tenants, especially the Millennial's and young couples. To find out the reasons why tenants move from one rental property to another, Apartments.com carried out a survey on more than 1500 renters. The survey found many interesting reasons why tenants chose to move out of a property. Some of the top reasons behind moving are as follows.
They want to live in a property with smaller monthly rent
They decide to live in a less expensive property. It is a fact that a vast majority of renters are those who live on one paycheck to another. Whenever these tenants face a financial problem, they find it difficult to afford their monthly rent. As such, it is common for such tenants to look for new accommodation where they have to pay a smaller monthly rent. According to this survey, nearly 25% of the tenants move out because of this reason.
They wish to live in another neighborhood
This is a very common reason behind tenants moving out from a property. Nearly 14% tenants become bored with the unit they are living in and desire to live in a more beautiful home. This is a very natural desire and the landlord has no choice but to see these tenants moving out of his property on a frequent basis.
They want to live in a larger unit
Nearly 12% of the respondents said they moved because they wished to live in a bigger property. This is also a natural desire when a family expands and the requirements are not met by living in a small apartment. Most landlords do not have an answer to this wish as they cannot enlarge their existing properties for their tenants.
They undergo a change in marital status
Most of the tenants decide to move to another rental property after marriage. They believe that their existing apartment is fit as a bachelor but they should move into a more beautiful and bigger apartment once they have got married. Nearly 11.6% tenants move out because of this reason.
They want to move into a smaller property
This is a strange reason for moving given by a sizeable percentage of the respondents. In fact, 10% of the tenants move out because they wish to either live alone or desired to live in a smaller rental property that they can manage more efficiently.
Findings of this survey are an eye opener for many landlords
This survey proved to be an eye opener for many landlords as they blamed themselves whenever one of their tenants moved out. There is no doubt that tenant turnover is bad for your land-lording business as it can kill positive cash flow. But there are reasons for moving out beyond your control. If you can find out why a tenant is moving out and you can do something to change his mind, it can be great for your business. If the tenant is not satisfied with his unit, you can offer a change of unit or even propose moving to another of your rental property in a different location.
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As a top producing Realtor and Property Manager; Terry specializes in sales, extensive construction homes, rentals, REO’s, short sales, and all aspects of Real Estate. After graduating the University of Michigan with a master in MBA, Terry continued his endeavor and now has over 15+ years of experience in the Real Estate world. If there is anything that has to do with Real Estate and sales, you can always be sure of Terry to provide important, specialized knowledge.
