What Landlords Should Consider When Renting to Frequent Movers

Landlords face unique challenges when renting to tenants who have a history of frequent moves. Although these tenants are attractive for short-term leases, there are a few things that landlords should keep in mind before they opt to sign a rental agreement. We offer a list of factors you should consider before renting to frequent movers.

1. Review Their Rental History Thoroughly

When screening frequent movers, one of the most important things you should do is look carefully at their rental history. Sometimes, frequent moves can be a red flag when a tenant hasn’t been able to maintain a rental agreement, perhaps they don’t get on well with their neighbors, or they’re simply dealing with financial instability.

Key Tips:

• Contact Previous Landlords: Check with other landlords if the tenant left on good terms, and if they paid rent on time.
• Ask About Their Move Patterns: Were these moves related to job relocations? Life style changes? Personal circumstances?
• Examine Duration of Previous Rentals: Tenants who move frequently should be asked why they move more than once. It’s okay if legitimate reasons like a job change or wanting to be with family more often take them out of town more frequently.

2. Check Financial Stability

In case frequent movers do experience financial problems, this could also make paying rent habitually tricky. For this reason, you will want to ascertain how financially stable they are before signing a lease agreement.

Key Tips:

• Run a Credit Check: In addition, verify their credit score to see how good they are at managing their financial obligations.
• Request Proof of Income: Ensure that their income can pay rent. Ideally, 30% of their income should never pay their rent.
• Ask for Employment Verification: Make sure they are employed. If they tend to move around quite a bit, there could be a reason: frequent job changes that reflect a lack of stability.

3. Consider a Shorter Lease or Month-to-Month Agreement

If a tenant seems like a good fit in all other regards, but you are worried about their frequent moves, you can offer a shorter lease or a month-to-month rental. This can be beneficial, in case the tenant is considering moving again soon or they don’t match up with the property long term.

Key Tips:

• Offer a Trial Period: If you haven’t had to manage properties in the past, consider setting up a trial period with a three or six-month lease to make sure the tenants keep the property clean and pay their bills on time.
• Consider Higher Rent for Short-Term Leases: Unless you feel comfortable with vacancy periods, charge a little more in rent on a short-term lease to cover possible turnover costs.

4. Higher turnover costs are to be expected

Frequent movers are also more likely to be lax in paying the rent sooner or vacating the property, which could lead to more turnover costs, for example, such as the cost of letting, cleaning, repairs, and new tenants.

Key Tips:

• Budget for Vacancy Costs: Make allowances for costs that will inevitably crop up (advertising, repainting, replacing flooring between tenants, and so on).
• Reduce Turnover Costs: make it easier to prepare the property to have new tenants. Make repairs fast and simple with the same paint, flooring, and fixtures.
• Build Relationships with Service Providers: Reliable contractors for cleaning, repairs, and maintenance can greatly reduce turnaround time, and cut costs associated with getting repairs and maintenance completed.

5. Get a More Secure Security Deposit

If you deal with a frequent mover as a landlord, it is not a bad idea to have a security deposit to cover the wear and tear on a property. This will give you an added layer of protection if something goes wrong or if you don’t get paid.

Key Tips:

• Follow Legal Guidelines: Check what the local and state laws state concerning the amount of security deposit that you can request.
• Explain the Deposit Terms: Include in the lease agreement what the security deposit is for. Thus when the tenant moves out, this transparency will help to prevent any dispute.

6. Communicate and know the expectations

As frequent movers, those who rent properties tend to value flexibility and convenience, but it’s critical to set expectations for what the responsibilities will be for the tenants.

Key Tips:

• Outline the Lease Terms in Detail: You need to be clear about rent payment schedules, who will cover regular maintenance-related issues, and what procedures will be followed at move-out.
• Create a Good Tenant-Landlord Relationship: make sure the communication lines are open, which can coax the tenants to stay longer and actually take ownership of the property.
• Be Flexible but Firm: Although some flexibility may allow tenants to approach you, still don’t go too easy on factors like rent payments and upkeep of the property.

7. Leverage Tenant Retention Strategies

If you choose to rent to a mover, tenant retention strategies can help cut turnover and keep tenants longer on the property.

Key Tips:

• Offer Incentives: If they are renewing their lease, try offering them rent discounts, renewals, and a few other perks.
• Stay Engaged: Make it a habit to stay in touch with your tenants and have the tenants come to you in case there is anything they need you to look at regarding the property itself.
• Create a Comfortable Living Environment: Maintaining the property well-kept and safe leads the tenants to stay longer.

Conclusion

Renting to frequent movers can be a challenge, but it isn’t necessarily a dealbreaker. You can offset the risks of renting out your property—but only if you take the proper precautions such as thoroughly screening tenants, placing a higher security deposit, and being willing to offer flexible lease options.

This guide provides tips to help landlords operate more effectively when renting to such tenants, thus allowing them to reap maximum rental income while minimizing the potential problems associated with renting to such a tenant.