As an agent who also is investing in real estate and is now a landlord, current trends and information about renters can prove to be a valuable piece of information. Recent research by RealPage, the parent company of Axiometrics, provides the kind of data that will help you with your investment properties.
According to a report on the research published by Forbes, an increasing number of renters nationwide are choosing to renew their leases when they expire, rather than move out.
The survey results indicate that it is a trend which has been increasing for more than five years.
A leading global provider of software and data analytics to the real estate industry, RealPage is led by Chairman and CEO Steve Winn. He said the company’s vast repository of data increases each quarter.
“To accomplish our mission of improving operational returns and optimizing capital allocation for real estate assets, we must relentlessly focus on the customer experience while leveraging our data footprint to ensure we are delivering the most comprehensive and accurate intelligence in the industry.”
According to the RealPage data about 51 percent of apartment renters elected to stay at their current home during the past 12 months. The research also found that there is a great variation in retention percentages at the metro level. These vary depending on a region’s economic indicators.
RealPage examined more than 2.6 million actual apartment lease transactions over the past year and ranked the top 50 metros by their renewal conversion rate.
The Top 5 cities and their retention rates are Hartford, Conn. (66.8 percent); Northern New Jersey (63.7 percent); Milwaukee, Wis. (59.5 percent) Detroit, Mich. (58.1 percent); and Providence, R.I. (56.5 percent).
The bottom five cities in the study and their retention rates are Charlotte, N.C. (48.9 percent); Portland, Ore. (48.7 percent); Orlando, Fla. (48.2 percent); Tampa Bay, Fla. (48.3 percent); and Jacksonville, Fla. (47.7 percent).
The study found that the best resident retention rates are in markets in the Midwest and Northeast. The highest turnover rates are in markets in the West and South regions, signaling higher renter mobility.
Key factors that impact renter mobility are employment growth, median age and increased new apartment supply.
The study found that a region’s median age is directly connected with the resident retention rate. This signals that mobility tends to decrease with age. Higher turnover rates signal a younger renter base and a more mobile lifestyle.
For agents who own investment properties, knowing the trends associated with renters can help you in myriad investment decisions associated with the properties that you own or may consider purchasing.
