What is Your Average Tenant Duration?

Question

What is your average tenant length stay? Just to qualify the number, it would be good to state how many properties you have and whether they are SFH or MFH units.

Joe Splitrock · Answer

@Bjorn Ahlblad it is a little hard to calculate the average, which is what got me thinking about posting the question. Some of my properties are newer and some have long term tenants who have not left after 5+ years. If I have a 3 year old property with a 3 year tenant, that property average is 3 years, but in 15 years that average will be different. I am at about 4.5 years average currently for all my SFH. My vacancy, with turn over, is near 0%, because I stack tenants back to back. As @Bill B. mentioned, turn over can be an opportunity to increase rents. That is especially true in this fast moving market. I just had a 2 year tenant move out, who was paying $1350 and the new tenant is paying $1675. I incurred no cost during turn over (accept my time) and experienced no vacancy, but I increased cash flow $325 per month. I do push rent increases, but it is pretty hard to push that type of increase to a good tenant.

@Brandon Plombon that makes sense on student housing, but you are likely not seeing any vacancy so it is probably not a big deal. I have a short term rental that has new tenants weekly, but it stays booked every day. Just a different model.

Joe Splitrock · Answer

That is a great question. Generally speaking, holding rents lower will decrease turn over. Screening standards also have an effect on longevity. Some of my longer term tenants were put in place with lower standards for credit score. I find the better qualified tenants are more likely to move out to buy a home. I am ok with that, because they also give me less trouble and take better care of the property.

I do have a little problem right now with market rents increasing so fast. Properties we rented last year for $1375 are renting for $1675 this year. I am not pushing a $300 increase to tenants on renewal. We are doing more like $50 for good tenants or $100 for people who are month to month. I didn't want to get too crazy and have a bunch of vacancies at one time. We will see where the rents stabilize at next year.

Mike Moe · Answer

On 24 MF units, about 4 years is our average. That said, the previous owner was a "mom & pop" landlord who didn't keep rents even near market. We've retained almost every tenant after bringing the rents closer to market, as we were pretty strategic about how we went about the raises.

Gabriel Hernandez · Answer

Newbie here. It seems like most people are saying 5+ years. That’s higher than I expected. Have you guys been raising rent every year or only on years when the rental market has gone up? Are you planning on continuing to raise it in the coming years as the market stays hot? Do you raise it by a percentage or dollar amount?

Jacob Abraham Vreeken · Answer

I have 2 SFH TWNHS that I have had for 3 years. So I guess my Average would be 2 years!

Terrell Garren · Answer

23 SFHs. 5 1/2 years.  Same lady still in my first rental going on 11 years.

Dawn Anastasi · Answer

My longest tenant came with the first rental I bought in Milwaukee. It's been just over 10 years. The "worst" turnover property I have is on it's 5th tenants in 7 years. Just have had bad luck with that one. Most others are long term and have been there since I remodeled the place after purchase.

Marcus Auerbach · Answer

SF in Milwaukee (suburbs) - around 5 years on average.

We are on the higher side of rental prices ($1,600 and up) and I have 2 turnovers at the moment and 3 new properties and we are getting flooded with tenants who's old house in lower priced neighborhoods is being sold. Some are going from $1, 000 or less in rent to $1,650 which is concerning to me.

Brandon Plombon · Answer

SFH rental but it's college housing so typically every 12 months.

Bill B. · Answer

A dozen SFR in vegas. 2 move outs last year dropped me to 5.75 years from 7.2. But raised rent almost 30% with 2 week vacancies

1 MN townhome 7 years Dec 1st. 10% rent increase this year (+$275/mo)

What is Your Average Tenant Duration?

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