Why Renters Leave? Don’t Beat Yourself Up!
When good renters break or fail to renew a lease, we’re often left wondering, “Why did that happen?” Well, wonder no more: For the 14th Annual Apartment Innovation and Marketing Conference (AIM 2019), which took place at the Hyatt Regency Huntington Beach on May 5-8, 2019, Joseph Batdorf, President, J. Turner Research, presented results from a survey conducted on behalf of AIM’s producer Joshua Tree Conferences Group. With Laurel Zacher, Vice President, Marketing and Talent Development moderating, Batdorf revealed the truth about renters who leave your apartment to move into one in the same neighborhood.
Methodology. Unlike an exit interview, J Turner’s methodology was to conduct interviews with potential renters of their clients’ properties. J Turner surveyed 120,000 prospects and received 21,102 responses (18%) to questions about:
- Type of current residence and zip code
- Current and anticipated rent
- Reason(s) for moving
- Leasing situation
- General frustrations with apartment living
Some of these renter prospects were “fledglings,” moving, for the first time, out of the nest (29%); but the largest sector, more than 8,000 prospects (39%) were moving from apartment to apartment.
As usual, life events like moving from dorms after graduation (4%), job relocation (25%) and room-mate / relationship status changes (5%). But what about the rest? The ones who announce their departure curtly, with tightened lips?
Of the 39% moving out of an apartment, said Batdorf
- 29% said they wanted to move to a “better” apartment
- 15% cited “Other reasons,” which comprised dissatisfactions ranging from neighbors to noise to management, BUT
- 19%, or more than 1,500 renters, are moving less than a mile away
One-milers. These, suggested Batdorf (who coined the name), are “the ones you really pissed off.” Their five biggest reasons for moving are
- A better apartment (42%)
- “Other” (15%)
- A less expensive apartment (10%)
- Dissatisfaction with management (9%)
- Lease is up (7%)
Noise, management issues and structural problems are not exclusive; they are crossover factors between “a better apartment,” “other” and “dissatisfaction” sectors. In fact, it’s safe to say that at least 65% are leaving for the same reasons. Which leaves 17% that are willing to go to the time and expense of moving for the cited reasons of “Lease is up” and “Less expensive apartment.” (Even other reasons are suspect, according to Batdorf, “like a one-miler citing ‘job relocation.’”)
Of the 42% looking for a better apartment, they are searching online for a better online reputation (71%). It’s an issue, said Batdorf, “They are really paying attention to.” And they are willing to pay up to $182 more in rent. “It’s a slap in the face,” added Batdorf. “They are not happy.”
Since this is the first survey of its kind, Batdorf is welcoming more suggestions for next year’s survey questions. Audience members suggested asking about price increases and student moves. Students, said Batdorf, may not meet the criteria since they frequently move within a mile of where they were living; he did, however, note that students also pay attention to online reputation.