Fannie Mae's Economic & Strategic Research Group released a Research Brief this week on the factors behind a consumer's decision to buy or rent a home. The study carries important information for housing policy makers and other industry players – including those involved in rental property management.
When making the decision to own or rent a home, American consumers are influenced by a mixture of demographic and attitudinal factors which drive their choices. However, according to the brief, "Attitudes are the key drivers of the own-rent intention for renters and homeowners with a mortgage – two groups that account for about 80 percent of housing units in the U.S."
For landlords looking for potential tenants, this information is very useful. During the tenant screening process, paying close attention to consumer attitudes in particular will help to determine whether a future tenant will be long- or short-term.
For instance, according to the brief, the largest determining factor among renters and mortgage owners was the belief of whether "owning or renting makes more sense financially over the long term." Inquiring about a potential tenant's expected length of stay could save the headache of another round of listing and screening tenants in the near future.