If you want tenants who will move in and stay put, then you need to look for single-family renters who want to live in houses rather than apartments when you are seeking people to sign your leases. According to a national survey released by ORC International for Premier Property Management, single-family home tenants are 18 percent more likely to stay in their current homes five years or longer. 26 percent of all single-family tenants plan to “stay in place five years or more,” while 22 percent of apartment dwellers could say the same, reported ORC.
Interestingly, single-family tenants cited management as the main reason why they were likely to remain in their leased properties for such a long period of time. Single-family-home renters praised their the quality of their property management in far higher numbers than those living in apartments (80 percent “good or excellent” vs. 63 percent “good or excellent.” More than a quarter of apartment tenants said that their management was “only adequate.” Chris Clothier, a partner in mega-property management and investing company Premier Property Management, said that he believes that renters view single-family renting as “either a temporary stop on the road to becoming homeowners or a as a permanent solution to their housing needs.” This makes these tenants far more reliable, steady renters than their apartment-renting counterparts.
About a year ago, Warren Buffett predicted that single-family rental homes would be better investments than stocks in the months ahead. With hedge funds, REITs, investing firms, and individual investors all entering the rental marketplace and, many analysts say, driving at least a temporary housing recovery, single-family rentals have never looked better. Do you own rental property? Wish you did?