of Rental Properties
The rental market is constantly changing, and landlords must be aware of the trends in order to stay competitive. One of the most important trends to watch is tenant churn, which is the rate at which tenants move out of a rental property. In recent years, tenant churn has been enabled by a decrease in asking rents and an increase in the stock of rental properties.
Asking rents are the prices that landlords charge for their rental units. When asking rents decrease, tenants have more options when it comes to finding an affordable place to live. This means that tenants are more likely to move out of their current rental unit and into a new one that is more affordable. As a result, tenant churn increases.
At the same time, the stock of rental properties has been increasing. This means that there are more rental units available for tenants to choose from. With more options, tenants are more likely to move out of their current rental unit and into one that better meets their needs. This also leads to an increase in tenant churn.
As a landlord, it is important to be aware of these trends and how they can affect your business. If you are charging too much for your rental units, you may find that tenants are more likely to move out and look for a better deal elsewhere. On the other hand, if you are offering competitive prices, you may find that tenants are more likely to stay in your rental units for longer periods of time.
It is also important to keep an eye on the stock of rental properties in your area. If there is an increase in the number of rental units available, you may need to adjust your prices in order to remain competitive. Additionally, you may want to consider offering incentives or other benefits to tenants in order to encourage them to stay in your rental units for longer periods of time.
In conclusion, tenant churn is enabled by a decrease in asking rents and an increase in the stock of rental properties. As a landlord, it is important to be aware of these trends and adjust your prices accordingly in order to remain competitive. Additionally, you may want to consider offering incentives or other benefits to tenants in order to encourage them to stay in your rental units for longer periods of time.