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Key Takeaways:
1. About 38% of renters in the US move within two years, reflecting high mobility in the rental market.
2. Gen Z renters are the most mobile, with over half relocating within 24 months.
3. Frequent tenant turnover increases costs for landlords and affects long-term returns.
4. Understanding what drives renters to move can help investors build better retention strategies.
5. Simple actions such as flexible leases, better amenities, and communication can improve tenant loyalty.
Table of Contents
Renters today are more mobile than ever. Rising housing costs, changing jobs, and lifestyle flexibility have made staying in one place feel less necessary. For property owners and investors, this growing mobility brings both challenges and insights.
If nearly half of your potential tenants are likely to move within two years, your investment strategy cannot depend solely on long-term leases. You need to plan for movement, understand what drives it, and find ways to make staying more rewarding for your tenants.
Having spent years studying rental trends, I have seen how tenant behavior can make or break investment returns. A property can be in a great location, have strong appreciation potential, and still underperform because of poor tenant retention. That is why this shift matters.
Let’s take a closer look at what’s behind this growing turnover trend, and how smart investors can use it to their advantage.
Why Renters Are Moving So Often
It is no secret that renting has become less about long-term commitment and more about flexibility. A recent national analysis showed that almost four in ten renters move within two years. Among younger tenants, especially Gen Z, that figure rises above fifty percent.
There are many reasons behind this. The most obvious one is cost. Rent increases continue to outpace income growth, which pushes many tenants to look for better deals elsewhere. Then there are lifestyle factors. Remote work, career changes, and the desire for new experiences often lead renters to seek new neighborhoods or cities.
Some renters simply want better amenities. Modern appliances, energy efficiency, and good maintenance can make a big difference in how long someone stays. Others are caught between renting and buying. Higher mortgage rates have delayed homeownership plans, so renters stay mobile while waiting for the right time to buy.
What Frequent Turnover Means for Property Owners
High renter mobility may seem like a small inconvenience, but for investors, it can have real financial consequences. Every time a tenant moves out, there are costs – cleaning, painting, repairs, advertising, and a few weeks or months without rent. Multiply that across multiple units, and the expenses add up quickly.
Frequent turnover also creates instability in cash flow. Predicting income becomes harder, which can affect your property’s long-term performance and even your ability to qualify for certain types of financing.
Steven Glick,
Director of Mortgage Sales, Ziffy Mortgage
Glick’s point highlights why understanding tenant patterns is not just about management; it is about maintaining a healthy investment profile.
How to Reduce Turnover and Keep Tenants Longer
The good news is that tenant churn can be reduced with intentional strategies. Successful investors are not only focused on location and pricing; they also think about tenant experience.
Here are a few proven ways to improve retention:
1. Offer Flexible Lease Terms
Many renters, especially younger ones, value flexibility. Providing options for 12-month, 18-month, or renewal-based leases gives tenants room to plan their lives while helping you keep consistent occupancy.
2. Maintain Your Property Well
A clean, well-maintained space signals respect and reliability. Quick responses to maintenance requests go a long way toward building trust.
3. Add Value Through Small Upgrades
Simple changes like better lighting, updated flooring, or energy-efficient appliances can make tenants think twice before moving.
4. Communicate Early and Often
Open communication builds loyalty. Keeping tenants informed about rent renewals, repairs, and local improvements helps them feel involved.
5. Incentivize Renewals
Renewal bonuses, small rent freezes, or even gift cards can show appreciation. Most tenants value stability when they feel appreciated.
6. Understand Local Mobility Patterns
Certain neighborhoods naturally have higher turnover because of their demographics. Data-driven investors use this information to anticipate vacancies and price accordingly.
What This Means for Today’s Investors
The rental market is becoming more fluid, but that does not mean it is unstable. Investors who plan for turnover instead of being surprised by it tend to perform better over time.
A good investment strategy should include projected vacancy costs, maintenance expenses, and incentives to retain quality tenants. More importantly, your property management approach should align with your long-term financing goals.
Steven Glick,
Director of Mortgage Sales, Ziffy Mortgage
In other words, renter mobility is not something to fear. It is something to factor into your playbook.
Conclusion
Nearly half of all renters move within two years, and that trend is not likely to slow down soon. Rising costs, lifestyle shifts, and flexible work arrangements are shaping a new kind of rental behavior—one where loyalty must be earned.
For investors, the takeaway is simple. Keep your tenants happy, plan your finances with turnover in mind, and create rental experiences people want to stay in. The best investments are not just about buying properties; they are about keeping good tenants for the long run.
FAQs
Why are younger renters moving so frequently?
Younger renters often move for career opportunities, better amenities, or lifestyle changes. Flexibility is a key factor in their decisions.
How can investors calculate turnover costs?
Investors can set aside roughly 5 to 10 percent of annual rent as a reserve for turnover expenses. This includes cleaning, maintenance, and potential vacancy periods.
Does frequent turnover affect property financing?
Yes. We assess rental income stability when determining loan eligibility and rates. High turnover can temporarily lower your debt service coverage ratio (DSCR).
What’s the best way to encourage renewals?
A mix of good communication, small upgrades, and loyalty incentives can encourage tenants to stay longer.
