Why Tenants Move

Tenants who are considering moving can be kept happy by good communication and thoughtful rent increases. The wonderful new tenant that you have worked so hard for? They might be already considering moving. Even experienced landlords can find it difficult to keep good tenants. Understanding the reasons renters move is key to developing better strategies to keep them.

There Are Many Factors That Can Cause Moves

There are many reasons why people move. There are, however, a few key drivers.

• Rent Rise

  This is the biggest one. This is the big one. More than half (55%) of renters claim that a rent increase affected their decision. 25% say it had a significant impact on their decision, while 30% said it had an effect on their decision.

  For those who had experienced one in the last year, the average monthly rent rise was $196.

  Renters over 55 years old report the lowest monthly median rent increases of $100 per month. However, 33% (33%) said that the higher rent influenced them to move. This compares to 23% (age 25-39), and 22% (age 40-54) of millennial renters. Both those younger generations reported median rent increases of $200 over the past year.

• Life Circumstances Have Changed Dramatically

  Moving involves many significant events, including new jobs, graduations, marriage and divorce, retirement, the birth of a child, and changes in your pay.

  47% of renters are affected by life's major events. Renters younger than those older are more likely to experience these life events as they transition into adulthood.

• Considerations For Investment

  43 percent of renters say that the main reason why they are considering buying a house is not that renting is a good investment.

• Freedom

  Renters enjoy the freedom to travel and have no obligation to purchase a home. For renters who intend to move to another rental within the next year, 33 percent say renting suits their lifestyle. 32% of those who do not plan to move in the future say that they would like to be able to move when life changes.

How To Keep Your Tenants Satisfied

• Rent Increases Are To Be Considered

  Rent increases do not always prompt renters to move. However, many renters will decide to relocate if they are significant enough. In 2019, the research found that renters who moved saw a $200 per month increase. A $100-per-month increase was common for those who had a rent rise at one point but stayed put.

  To ensure that your charges are in line with local markets, keep an eye on them.

• Check-In And Communicate

  You can adapt to their changing circumstances by being aware of what is happening in your tenants' lives. A reliable tenant might consider moving to be able to have a pet or because they don't want to do the yard work. You can evaluate the reasons they are considering moving so you can make changes to their lease terms and to the rental that might encourage them to stay.

• Rent-Versus-Own Calculus

  Some renters might think about the equity they would be building if their home was owned. However, ownership might not be financially beneficial for them. A rent-versus-own calculator can show whether they're better off renting or buying given their current circumstances and plans.