Understanding the Data Surrounding Single-Family Home Renters
There is a surprising new trend with single-family home renters, according to a recent Buildium Survey. The survey states that only 32% of single-family renters were certain that they would renew their current lease between mid-2022-2023. Let’s flip those numbers to conclude that a whopping 68% of single-family home renters are considering moving out!
While these statistics (at first glance) make it seem like property investors and landlords have hit rock bottom this year with single-family home renters — there are a few things to consider on both the rental and investment side before we spiral into a state of complete panic.
According to the survey, there are three main groups attracted to single-family rental properties.
- Couples: 51% of single-family homes are occupied by couples
- Multigenerational families: 43% contain relatives of different generations
- Families with children: 29% have children under the age of 18
These family groups are attracted to the comforts of living in a home without any of the risks associated with ownership. They are provided an indoor and outdoor space that is conducive to remote work and backyard recreation. Single-family homes also provide access to lower-density neighborhoods that are quiet, safe and family-friendly. So, what are the factors that are influencing renters to stay or go?
Renters are considering moving to either buy a home or save money. According to the survey, 39% plan to buy a home of their own, while 34% are moving due to affordability concerns. The other factors include:
- Moving locations for personal reasons (22%)
- Wanting better/different amenities (22%)
- Need different types/amount of space (17%)
- Dissatisfied with the rental experience (13%)
- Moving for work/school (12%)
- Moving to live with different people (9%)
Based on the statistics of the “other factors,” property managers have more influence on whether renters stay in their current property or decide to move.
At first glance, it may seem that most single-family renters want to jump ship to start their home-buying journey or due to financial concerns. However, the nuances of the renters’ responses lead the survey creators to believe more is at hand. The survey states that “the overarching consideration behind renters’ decision to renew their lease is their sense of value within their current property.” The sense of value comes from three main areas:
- The quality of service they receive from their property manager or landlord
- The condition of the property and attention paid to maintenance issues
- The amenities and services that are available to them
Bottomline: Property Managers Matter
The survey proves that property managers and landlords influence renters’ decisions to stay or go more than they may think. For example, a renter’s perception of the value associated with the single-family home plays a considerable role in whether they decide to renew the lease. In fact, the survey goes on to say, “[renters] who are more satisfied with their current property are less likely to plan to buy a home right away, even if it’s still their goal in the long term. And among renters for whom price is a leading consideration in their decision to move, it’s not necessarily a simple matter of their income versus the price of rent.”
The survey also states that current single-family home renters are interested in a few things to keep them in their current rental agreement.
- Technologies to make the rental process as seamless as possible
- Amenities such as an open kitchen, garden space, off-street parking and the option to have a pet
- Being proactive and fixing problems promptly when they arise
Bottomline: being an attentive landlord or hiring a property management company to fill that role makes a considerable difference in whether your tenants renew their lease or not.
Oak City Properties is Here to Help
At Oak City Properties, we strive to be better than our competitors. We provide custom solutions and competitive quotes that tailor our services to what you really need. Our full property management service will work with you each step of the way when renting and maintaining your property. We pride ourselves on having no hidden fees and providing you with a seamless experience from start to finish. We believe hiring a property management company should be a transparent process built on trust and doing our absolute best to take care of your investment.
Interested in learning more about Oak City Properties? Give us a call at (919) 232-9222 or check out our website: Oak City Properties
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