We came across an interesting article. A Latvian developer who owns several "income-generating residential buildings" (with 400 rental apartments) has categorized tenants into nine groups. Age and gender are taken into account, as well as the specific characteristics of single renters, families, and families with children.
Each category shows different levels of responsibility and payment discipline.
This research is based on the experience of a particular developer in the budget apartment segment. The results help determine which tenants will cause the least problems. This is important for professional investors to avoid vacancies and frequent tenant turnover. The top three look like this.
The most stable tenants are families or couples over 50 years old. They sign long-term rental agreements, pay regularly, and maintain the property in good condition.
The second category includes single women over 50 years old. Their lease terms are also fine. However, their payment capacity is weaker. There is an explanation for this-a single person often has lower income than a couple (where there is a double salary or double pension).
The third category consists of men over 50 years old. If they are working men without bad habits, there will be no problems with such tenants. If there are bad habits (for example, alcohol addiction), then conversely-such a tenant will cause problems.
The most unstable category consists of single and young women. They may intend to sign a long-term lease agreement, but often life circumstances arise (moving in with their boyfriend, returning to parents to save money). Because of these situations, rental agreements often end prematurely.
However, in terms of apartment cleanliness and payment discipline, young women can be relied upon more than young men.
We fully agree with this research! Indeed, adult tenants are not prone to changes and approach housing matters seriously.
Nevertheless, from our observations, price category is also important. Private houses and apartments in new buildings are rented by tenants with high income levels. Regardless of their age and marital status, they are focused on stability and quality of life. They can live in one place for three to five years. Budget apartments (economy class), however, are perceived by tenants as a "temporary option." And as soon as there is an opportunity to improve living conditions (through a better quality apartment or moving in with their significant other), they immediately take advantage of it.
If you are planning to rent out a property or change tenants, please contact us-we would be happy to help!
Source: https://www.varianti.lv/ru/novosty-i-analytika/7152-lokdaun-proshel----polet-normalnyy
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