That terrific new tenant you worked so hard to find? There’s a good chance they’re already thinking about moving.

Keeping good tenants is a challenge, even for experienced landlords. Knowing the reasons why renters move can help you develop better strategies for keeping them.

According to the Zillow Group Consumer Housing Trends Report 2019, 67% of renters say they’re planning to move again within the next three years. Even more striking, 47% of renters are either currently considering moving or are thinking of doing so in the coming year.

While some renters with plans to move within the next year intend to buy a home or move in with friends or relatives, 61% say they’re planning to move to another rental.

Several factors can trigger moves

People move for different reasons, of course. But there are a few main drivers:

Rent increases

This is the big one. More than half (55%) of renters say a rent hike affected their decision to move; 25% say it influenced them to a great extent, and 30% say it affected their decision to some extent.

The typical monthly rent increase for those who experienced one in the past year was $196.

Renters 55 and older report the lowest median increases — $100 a month. But a third (33%) of those renters say the higher rent influenced their decision to move to a great extent, compared with 23% of millennial renters (ages 25-39) and 22% of Generation X renters (ages 40-54). Both of those younger generations report median rent increases of $200 in the past year.

A significant change in life circumstances

New jobs, graduation, marriage and divorce, retirement, the arrival of a new child and changes in pay are also significant events associated with a move.

Momentous life events influence moves for 47% of renters. Younger renters, who are launching into adulthood, experience more of those life events more frequently than older renters. 

Investment considerations

More than 1 in 4 renters (43%) say the main reason they think about buying a home is because they don’t consider paying rent to be a good investment.

Freedom

Some renters like to mix things up and experience life in different places without being tied to a mortgage. A third of renters (33%) who plan to move to another rental in the next year say that renting suits their lifestyle, and 32% say they want to be able to move as life changes, even if those changes are not imminent.

How to keep your current tenants

Be mindful of rent increases

Not every rent increase prompts a move, but many renters may decide to uproot if the increase is large enough. In 2019, Zillow research showed that a $200-a-month increase was typically associated with renters who moved. For those who experienced a rent increase at some point but stayed put, a $100-a-month hike was typical. 

Keep tabs on the local market to make sure what you’re charging is in sync with the area. The Zillow Rent Index can provide you with a quick — and free — look at the typical estimated market rate according to housing type and location. For major markets, you can even drill down to the neighborhood level.

Communicate and check in 

Being tuned in to what’s going on in the lives of your tenants can help you accommodate their new circumstances. For instance, a reliable tenant may consider moving because they want to get a pet, or maybe they’ve retired and don’t want the responsibility of yard work. Knowing why they’re thinking of moving allows you to evaluate possible changes to their lease terms or to the rental itself that would induce them to stay.

The rent-versus-own calculus

Renters may think of the equity they could be building if they owned a home. Ownership, however, might not make economic sense for them. A rent-versus-own calculator can show whether they’re better off renting or buying given their current circumstances and future plans. Combined with the Zillow Rent Index, it can help you determine if you’re offering a good value to your tenants.