Renters Continue to Renew Leases at High Levels
According to RealPage Performance Analytics 54.5% of renters decided to renew their apartments lease rather then move in February. The apartment lease renewal rate has been improving since 2010 and has not been this high in 10 years. The fact that renters are choosing to renew their leases in such a high number is significant considering that rents are continuing to rise while new apartment supply continues to be high.
Jay Parsons, Director of Analytics & Forecasts, MPF Research, MPF Research, reports several conclusions that the study on renewing leases suggests. One interesting conclusion is even though there is strong rent growth across America; Americans are choosing to stay in their apartments indicating that they have not hit their max rent levels yet. Another conclusion is that there is limited risk in building more rental apartments as renters are not leaving their current apartments for cheaper housing. In addition, February to April seem to have the highest renewal rates while mid-year and December seem the have the lowest renewal rates. Jay Parsons believes that the renewal rate will soon level off. However, he does not believe if the renewal rate falls it will be a bad thing as landlords generally feel more comfortable raising rent higher for new renters which could mean higher rent growth for the property owner. However, Parsons reports that if the renewal rate falls significantly lower it could cause panic and lead property owners to slash rent to avoid having to many empty units. With the lease renewal rates being so high, rental property owners need to make sure they have a Property management system that can easily track lease renewals and has other key management features. With RISSOFT’s software for property management you can easily track renewal leases. Renewal lease forms can be customized to property owners and managers’ needs and tenants can be assigned different forms to fit their status so owners and managers can avoid making errors during the renewal process. RSSIOFT lease management software is the best commercial property management software because it has key features designed by a rental property owner for rental property owners This post is provided by RISSOFT Residential and Commercial Property Management Software, specializing in innovative and cutting-edge property management software for all 50 states. Request a demo or contact us today to receive more information. Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.
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