More MF Tenants Opt to Stay As Rents Rise
ByNetwork with the nation’s top CRE dealmakers at RealShare APARTMENTS in Los Angeles on Oct 21-22,RealShare INDUSTRIAL in Atlanta on Nov 3-4, RealShare NEW LEASE WEST in Los Angeles on Nov 11-12 andRealShare HEALTHCARE REAL ESTATE in Scottsdale, AZ on Dec 2-3.
Parsons: “Rapidly rising rents” aren’t discouraging tenants from renewing.
CARROLLTON, TX—Even as apartment rents continue to climb, so do owners’ retention rates. MPF Research said 51.1% of renters whose leases were set to expire last month chose to renew rather than move out, a 300-basis point increase from August 2014. Those renewals included an average 5.4% increase in monthly rent, according to Carrollton, TX-based MPF, based on an analysis of data from parent company RealPage Inc.
The August rent increase was the largest for renewals in nearly 10 years, MPF says. More than 50% of apartment tenants have chosen to renew over the past 20 months. Prior to 2010, the renewal rate tended to fall within the mid-40% range…
