how long does your average tenant stay?

[TMNT]

Simple poll
Assuming 12 month residential lease,

How long does each of your tenant stay?

When I first got into the game, I assumed tenants would Stay one year

But then it got me thinking unless you had to move or changed jobs or your rent was increased above market, I hate moving. Trucks, shifting heavy stuff, rearranging, plus costs involved, I reckon I'd stay at least three years

 

[Charlotte30]

Tenancy turnover

Bit of a difficult question to answer. It depends on why they are there. They could be on secondment for employment or moving to a different phase in their life. I voted 2-3 yrs because my tenants are not moving due to the shortage of accommodation post earthquake. Before that it was 12-18 months turnover. I have mostly 2 bdr apartments close to the city with some 3 bed townhouses.

 

[geoffw]

I tend to have longer term tenants- but that's because they are reasonable quality properties which are well priced in the market.

When I had the block of flats I inherited a tenant who had been there for many years. He was removed from the premises though shortly after I sold. I went to the funeral.

That block though was bottom of the market and as such generally attracted short term tenants. The PM really earned her keep.

 

[INVSTOR]

There's no 4 yr option! My longest is 4 yrs but had to move the tenant on to sell property. I had another one stay for about 4 years and a current one wanting to stay that long. Most of mine are 1-4 yrs. if I have a couple of rental applications I may choose a tenant wanting a longer term over a short term application .

 

[schweedy]

I have marked 2-3yrs, as most of our tenants have stayed that long.

Though we have had shorter, I have had one fellow in place for over 12yrs, he will be moving out come the end of this year. So it averages out around the 2-3yr mark

 

[citystar]

I voted for 2-3 years, more like 3 years for the average tenancy period for my properties.

 

[impala67]

I marked 2-3 yrs also.

One's moving out after a 14 month lease in 3 weeks time (I gave a couple of students a chance with one of the mothers as a guarantee).

The rest are approaching 2 years and 3 years. Unless the rents are rising a lot, I agree with TMNT, don't know why some people would want to move much and I don't get why people want to go month to month for years rather than re-sign periodical leases.

 

[Jacaranda]

One of my tenants was in the house when I bought it - 12 years ago, but then the shortest is one year.

I now give a new tenant a six month lease to start with then if they are ok will go one or even two years. The idea being is if they don't turn out as thought I can tell them lease not being renewed, it was also bargaining power when a tenant was a bit erratic with rent payments and dates and this encouraged her to set up a bank transfer.

I was renting in my last house 9 1/2 years but landlord wanted his family to move in so had to move out otherwise I would have been in a further 3 years.

 

[chilliblue]

We have inherited a tenant from our last purchase and he has been there since it was built. 24 years and currently on a 2 year lease.

On average, our tenants stay 2-4 years

 

[Lil Skater]

From a PM POV 2-3 years average, longest tenant was 30+ years and only left to go to a nursing home.

 

[Dazz]

We purchased a factory a few years back, inheriting a reasonably stable Tenant who had been happily renting there since 1968.

Last year we finalised negotiations and executed a fresh 15 year Lease with them, so when they complete that contract, they will have been in the Premises 60 years.

I think I'll let my children negotiate the next one with them.

 

[Scott No Mates]

Most of the ones that I manage last at least their first 3 or 5 terms but are usually there 9+. One has just resigned for the 16-20 years with healthy annual reviews.

The joys of CIP.

 

[joeExpat]

My tenants in Australia stayed for a long time (> 5 years), it was their home.
I just signed a rental agreement for 3 years for myself, I can leave earlier with 2 months notice but the owner can't kick me out before 3 years (in Spain though).

 

[Allgood]

Our Canberra IP has the same tenants who were in there when we purchased in 2006. Fantastic tenants, and we've tried on a few occasions to sign them up again, although they've opted for a continuing month-month agreement for about the last 5 years. Last week the PM rang out of the blue saying they want to lock it in for 12 months!

 

[D.T.]

If the average tenant stays 2-3 yrs, why do people use 48 or 50 weeks rent in their cashflow calcs?

 

[Lil Skater]

If the average tenant stays 2-3 yrs, why do people use 48 or 50 weeks rent in their cashflow calcs?

Preparing for worst case scenario..?

 

[Truly Exotic]

If the average tenant stays 2-3 yrs, why do people use 48 or 50 weeks rent in their cashflow calcs?

unfortunately, some of my areas, the agents charge 2 weeks letting fee and1 week reletting fee which is ludicrous,but unfortunately, its what everyone else does too!!

 

[fisherman]

The number of responses is low. While it is interesting, there would be predictable differences that make this a comparison of apples and oranges. For example, by definition alone one might expect higher tenant turnover in places with a high itinerant population.

Regarding letting and re-letting fees, taking week/s of rent is a carryover from the distant past where agents did a lot more than tap a few keys to list on the internet, or hand out keys for inspection*. There has also been a proliferation of fees and charges on top of management fees. However PMs have a more difficult job as a result of changes in tenancy regulations and the complicated legal-bureaucratic mess wrought by government interference in what was previous a largely private arrangement.

At the end of the day though, regulators and all who believe they have a stake in rental housing have to come to terms with the fact that it is a high risk investment and the returns for owners are poor. A flight from this form of investment is on the cards, especially with Boomers departing the scene, and a flight, once started, will not be turned around so easily. Tenants and prospective buyers will not benefit from loss of investment.

*with apologies to some of the competent and diligent PMs who post here.

 

[Ideo]

I had corporate in my now sold ones.

For me as a tenant, I tend to stay an average of 18 months - and moves tend to be large (i.e. from Sydney to Newcastle) rather than around the corner to save $20

 

[Africandaisy]

Ive got one property that turns over every 12 months. I've asked the PM if its something 'wrong' with the property/street but she reckons its very common in the rental market in that area (low socio-economic area). The two weeks letting fee plus any vacant period during changeover of tenants really does impact on the cash flow. So I will try to suss out the average turnover period when looking for my next IP.