Tenant Turnover Sticky

For the first time in my experience as a landlord (6 years), over 57% of my tenants have opted to renew leases for another year.  This is up from a record high of 33% in previous years.   This is surprising to me.  I have some possible theories as to why:

1.  Job Turnover/Volatility is Low - Many people move because of job transfers.  Many of my previous tenants moved because of changes in employment.  Since there is little job growth, this tends to reduce mobility and keep people where they are.

2.  Wage/Earnings Stagnate or Decline - it is possible that my tenants are feeling a pinch in the pocket book.  Moving is expensive and the cost/reward ratio is high if your income is the same or lower than it was before.

3.  Credit Declining - it may be possible that my tenants' credit condition have worsened and therefore they may not qualify for another rental unit.  I hope this is not the case since it puts me in a higher risk position in the event that they damage the units.   

4.  Rent Appreciation - I have held my rents steady for the past year and it is possible that rents have risen for comparable units in the marketplace. 

5.  Superstar Landlord - It could be that I am such an awesome landlord that my tenants feel compelled to rent from me even though they could move out in a heartbeat and buy the home of their dreams.  On second thought...nah.

I have spoken to other landlords and their situations are a bit different do to the different nature of their units and their business models.  Nevertheless, their experience is likely dictated by what is going on with the first four of these market factors.  If you are a landlord, chime in and let us know your experience lately.