16 August 2017

UNITED STATES: New research suggests residential tenants may be better off renewing their lease rather than moving

A recent study suggests that it may be more financially beneficial for residential tenants to renew their lease as opposed to moving.  The study conducted by the real estate firm Zillow indicated that landlords typically raise rents slower for tenants renewing their lease than for new tenants moving in.  Across the country the annual market rate increase in rent from 2014 to 2015 was 5.6% compared to a 3.6% increase for renewed leases.

Renters in San Jose, Boston and San Francisco appeared to have the greatest financial incentive to renew instead of moving each year, saving close to $9,000 annually on rental payments, while renters in Las Vegas had the smallest.  Those in Las Vegas who had lived in the same unit for five or more years paid on average $842 less per year than renters who moved the year before.

‘Renters have a decision to make almost every year, do they stay in the same place, or should they look for a new unit? With the country in the middle of an affordability crisis, it’s important for renters to understand how much they can save if they renew their lease instead of finding a new rental,’ said Zillow chief economist Svenja Gudell.

‘Nationally, rental rates have slowed and the savings from renewing are not as significant for renters today. However, in some of the hottest rental markets, where rents are still rising aggressively, continually renewing a lease can mean saving thousands of dollars,’ she added.

For more information read the whole report overview here

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