High turnover for nicer SFH rentals

[Albert Tsang]

I own nicer SFH rentals nice and establisehd neighborhoods and I wanted to understand if there is a correlation between nicer rental = higher turnover when compared with average rentals. The reason I ask this question is because I have been experiencing yearly turnovers on all my SFHs. I didn't receive any negative feedback from the property nor the PM team, so the move out conditions are beyond my control.

In talking with fellow RE investors that are more focused on average blue collar rentals, turnover seems to be much less. An explanation I can think of is that people who can afford a nicer SFH have the ability to eventually purchase a property. However, from what I have noticed, I would say less than 25% are planning to purchase a home after terminating the lease.

Just want to ask BP members if this is a common theme for nicer SFHs and if not, are there any strategies to attract longer term tenants in this type of property?

[Rob K.]

My application asks the question, "How long will you live here?" Then there are three boxes available to check. 1 yr, 2 yr, or 3+ yr.

There is nothing holding them to this, but it gives you an idea of what their mindset is. If they check 1 yr and you see on their application that they have been at each address for a year, they will most likely move after a year.

If they check the 3+ yr box and have been at their current rental for 5+ years, that's a great sign that I like to see.