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Surprising 60 Statistics for Landlords and Tenants — Facts You Should Know for 2022

RentDrop Team
RentDrop Team Published : December 23, 2021

Accurate statistics and market research is key to the success of every landlord and property manager. Knowing the latest trends in the rental market can help you stay ahead of the competition. You can also use stats about renters’ behavior to tailor services to meet their demands. In addition, facts about the landlord industry can help you avoid mistakes that some made in the years up to 2022.

This article has 60 statistics and facts every landlord and tenant should know.

The 40 statistics for landlords give you a unique insight into tenant behavior and preferences. You will also find surprising facts on the more profitable areas of the country to own a rental property. What’s more, you will learn about exciting solutions to help resolve your tenants’ most critical pain points.

Additionally, 20 facts about tenants will help you better understand what renters are looking for from a landlord.

Contents

Landlord Income Statistics
Landlord-Tenant Statistics
Landlord Statistics by State
Statistics Regarding Property Maintenance
Managing a Rental Business Statistics
Tenant Screening Statistics
Tenant Income Statistics
Statistics on Tenant Screening and Applications
Tenant Eviction Statistics
Tenant Statistics by State
Miscellaneous Tenant Statistics

40 Startling Statistics Every Landlord Must Know

Landlord Income Statistics

1. Most landlords are individuals who own a few rental units

According to Pew Research Center, 72.5 percent of landlords are private landlords or individual investors who only own between one and four units. This accounts for 14.1 million units in the United States rental market.

2. Over 10 million Americans earn rental income from real estate

Tax returns submitted to the IRS show that more than 10 million people declared part or all of their income is from rental housing. The figure means that 7.1 percent of US residents earn some money as landlords.

3. Forty-seven percent of landlords rent a property because it has sentimental value

A fascinating statistic reveals that 47 percent of landlords hold on to a property because it has sentimental value. This means that many landlords in the US are accidental landlords who only have a single rental property.

4. Unpaid rent debt during Covid amounted to $20 billion

The shock of the global pandemic in 2020 and 2021 meant that landlords were owed a whopping $20 billion. [PEWTrusts]

5. 1.64 million people are evicted each year for nonpayment of rent

On average, 1.64 million tenants are forced to leave their homes because they can’t pay rent. This startling statistic means that 82 percent of the 2 million evicted persons fell behind on rent payments. [NYU Law]

Did you know that using a rent payment app can help minimize the risk of a tenant paying rent late?

6. The size of the US rental industry has increased by 0.5 percent since 2016

Because the number of tenants across the country is rising, demand for apartments to rent is rising. This fact means that more and more property owners are becoming landlords. [IBISWorld]

Landlord-Tenant Statistics

7. Thirty-six percent of US households rent a house or apartment

Of the 122.8 million households in the US, around 36 percent pay rent to a landlord rather than own a home. [Pew Research]

8. Three-fifths of renters have the lowest income

Surprising statistics show that 60.6 percent of renters are low-income renters in the lowest income quartile. This figure drops to 41.8 percent for renters in the second quartile (25 – 49.9%). Only 10.5 percent of the wealthiest individuals in the country rent a home. [Pew Research]

9. The average tenant has a credit score of 626

Tenant screening is a vital part of finding a suitable tenant for your unit. Statistics show that most rental applicants have a good credit rating.

10. Seventy-two percent of tenants own pets, up from 43 percent in 2012

If you are a rental property owner, you should consider making your unit pet-friendly. Most tenants want to rent a unit where pets are allowed. [PRNewsWire]

Here is an excellent guide to pet screening.

11. Twenty percent of tenants say they keep pets at home illegally

It’s hardly a surprising statistic for landlords, but one-fifth of tenants break their lease agreement by owning a pet without the landlord’s knowledge. [PetFinder]

12. Thirty percent of Americans never make cash purchases

According to news reports, one-third of Americans never use cash. This is another reason to give your tenants various options to pay rent online or using a mobile payment app.

13. Fifty percent more people started using mobile payments since the coronavirus pandemic

It’s not a surprising statistic that most people ditched cash during the pandemic to avoid catching Covid. Because of this, more people than ever started looking for ways to pay their bills—including monthly rent payments—online. [BusinessWire]

14. Using credit cards to pay bills like rent has increased by 59 percent

The switch from cash to digital means that most tenants want to pay rent by credit card or debit card. [BusinessWire]

15. 49 percent of tenants in the US are under 30 years old

Most of the population in rented housing in the United States are millennials or Gen Z [Statista]

16. The main top reason for renters leaving is because they found a better deal

It is vital to stay competitive in your neighborhood because tenants always look for landlords offering the best deals. [Statista]

17. Three-quarters of tenants say rent price followed by neighborhood are the top two considerations

It is not surprising for landlords that a tenant’s foremost consideration is the cost of the rent. Because of this, it makes sense to invest in technology that can save you time and resources. [Zillow]

18. Landlord reviews influence the decision of 48 percent of renters

Excellent landlords earn stellar reviews from their tenants. So, ensuring you offer the best service can help build your reputation and attract the best tenants. [Zillow]

19. After contacting a landlord, 31 percent of renters expect to hear back within a few hours

Over 80 percent of renters want an answer within 24 hours. However, the faster you reply to calls, the more likely you will reduce rental vacancy rates. [Zillow]

Landlord Statistics by State

20. Michigan has the highest rental yields in the country, California the lowest

According to official rental statistics, landlords in Michigan (specifically Detroit) enjoy the best profits on their investment properties. In general, the best rental yields are in the Midwest and South. New England and California are challenging markets for landlords. [PropStats]

21. Florida and Idaho Top the Table for best states for investing in property

If you want to invest in the real estate market, head to Florida or Idaho. These states provide the best return on interest (ROI) for real estate investors. [MPA]

22. In 2021, Delaware had the highest monthly rental price rise in the US

If you are a landlord in Delaware, you could increase rent by 12.21 percent in 2021. Second and third in place were Idaho and Montana. [Statista]

23. In 2021, 16 states had significant drops in monthly rent

The states with the most significant decrease in monthly rent were DC, Massachusetts, North Dakota, and New York. [Statista]

24. Rent prices in Las Vegas grew the fastest in 2021 by up to 30 percent

It might surprise most landlords that Las Vegas was the city where monthly rent prices skyrocketed in 2021. [KTNV]

25. The West has the highest percentage of renters in the country, with the Midwest and the South the lowest

There may be more people living in rented properties in the west. However, statistics show that it can also be the most challenging market to make a profit. [Fred]

Statistics Regarding Property Maintenance

26. Sixty-one percent of landlords say maintenance issues are the biggest pain point

Maintenance is the most significant issue facing landlords. Due to increased pressure, 60 percent of landlords decided to hire a property owner. An interesting fact is that dealing with tenants is a landlord’s second pain point. [BusinessWire]

27. Forty-four percent of landlords say painting the property’s interior is the most top maintenance job

One of the easiest ways to freshen a rental unit is to paint the interior. That is why nearly half of landlords view interior decorating as a top priority. [Zillow]

Managing a Rental Business Statistics

28. Six percent of suitable rental units are unoccupied

According to the US Census website, 94 percent of rental units were occupied in 2021, whereas 6 percent were vacant. This is the lowest rate since the 1980s.

29. Nearly half of all landlords manage their own rental units

Most “mom and pop” landlords don’t use a property management business to manage rental units. Did you know that a free rental app like RentDrop can help make owning a rental unit more manageable? Click here to find out the benefits of RentDrop. [Propstats]

30. Forty-two percent of millennials use paper checks to pay rent

A startling fact is that just under half of millennial renters still mail their landlord a rent check. [PYMNTS]

31. Eighty-three percent of tenants say they want to pay rent online

Renter statistics show that most millennials would prefer to pay online or use an app. So, if you’re a landlord, maybe it’s time to switch to using a rent collection app? [Zillow]

32. Offering a flexible rent payment schedule could cut evictions by 50 percent

With many renters working in the gig economy, you can significantly reduce late or missed payments by offering flexible rent payment schedules. Did you know that RentDrop offers landlords an easy way to allow tenants to pay rent on their income schedule?

33. 10.4 million people receive federal assistance to pay for housing

Are you thinking about becoming a Section 8 landlord? There are pros and cons to having Section 8 tenants in your unit. [CBPP]

34. 63 percent of renters don’t have renters insurance

It’s a surprising fact that most tenants put their possessions at risk by not having renters insurance. On the other hand, only five percent of homeowners don’t bother with home insurance. [III]

Did you know that you can require tenants to show proof of renters insurance?

35. Fifteen percent of renters prefer to sign leases electronically

Although most rental leases are signed with paper and ink, there is a growing demand for signing leases electronically. Did you know that rental payment apps can store and process electronic leases? [Zillow]

36. Sixty-one percent of tenants have a lease agreement for 12 months

Most landlords prefer to offer tenants leases of 12 months. However, it’s a startling fact that five percent of landlords don’t have any formal lease with their tenants.

37. Thirty-five percent of renters have not moved within the past year

Interestingly, statistics show that tenants typically stay in a rental unit for three years. Of those that decide to move, 86 percent stay within the state. And did you know that the average renter stays three years in a property? [Wilder]

38. Only 21.7% of renters are considering moving home

Despite challenges after the pandemic, tenants are not moving houses as often. In fact, figures show that moving to a new place has never been lower than in the past 20 or 30 years. [Census.gov]

Tenant Screening Statistics

39. Tenant screening results in 14 percent of rental applications being rejected

It seems that most tenants prepare well when they submit a rental application. However, you should always carry out thorough screening to minimize the risk of having a delinquent tenant. [Wilder]

40. The effect of minor criminal offenses becomes insignificant after two years, felonies after five years.

Landlords tend to ignore misdemeanors after two years have passed. However, letting at least five years pass for major crimes seems to be the average before a landlord would consider signing a lease agreement. [Wilder]

Tenant Statistics for 2022

Tenant Income Statistics

1. Rent payments are the major monthly expense of tenants’ expenses

It’s not a surprising fact that a tenant’s monthly rent is the most significant expense. This is one reason why tenants want landlords to report on-time payments to credit bureaus. [PewResearch]

2. In 2021, renting is cheaper than buying

With the rising cost of buying a house, there is a growing shift for people to rent rather than buy. [NYTimes]

3. Thirty-seven million American renters are “housing cost-burdened”

According to statistics, millions of Americans are paying more than 30 percent of their income on rent. Over 17 million are considered “severely cost-burdened” because 50 percent of their monthly income goes on housing. [Habitat]

4. For 50% of renters, the cost of a down payment prohibits them from buying

More tenants would consider purchasing a home if they could afford the down payment.

5. Tenants must earn $20.30 an hour to pay rent. The minimum wage is $7.25

A shocking statistic for renters is that they must make $20.30 an hour to meet rental housing costs for an average apartment. That is nearly three times more than the minimum wage. [NLIHC]

6. 12.3 percent of millennials plan on never buying a home

Owning a home is no longer the dream for the younger generation. More and more millennial renters say they can’t afford to buy a house and will rent for the foreseeable future. [WTopNews]

7. 39.4 percent of renter households spend more than 35 percent of gross income a month on rent

It can be a tough time to be a tenant when nearly 35 percent of your earnings go on rent. CNBC reports that in New York, the figure rises to a shocking 40 percent. [Statista]

Statistics on Tenant Screening and Applications

8. 26 million Americans have no credit score - reporting rent payments could fix that

It’s a shocking statistic that millions of Americans can’t get credit or buy a house because their credit score is zero. If you’re a landlord, have you considered offering to report a tenant’s on-time rent payments? You could attract more tenants if you did. [Forbes]

9. Only 10% of renters benefit from on-time rental payments as part of their credit scores

According to Freddie Mac, landlords should offer tenants the opportunity to report rent payments made on time. [HousingWire]

10. Six percent of millennials rent their primary home for income

Millennials are now becoming the next generation of landlords, with a small percentage willing to rent their homes to generate passive income. [Zillow]

11. 84 percent of renters use online resources to search for a home

In the digital age, it’s an unsurprising fact that most tenants look for a place to rent using an online resource. This trend emphasizes to landlords why it’s vital to invest in marketing and online advertising.

Tenant Eviction Statistics

12. Nearly 30 percent of tenants were facing eviction for nonpayment of rent after the eviction moratorium ended

During the middle of 2021, nearly 30 percent of tenants were facing eviction when moratoriums ended. Evictions at the end of October 2021 started to surge. [PEW and Statista]

13. Renters spend 10.4 weeks looking for a home and submit at least three applications

If you are a landlord, it pays to invest in marketing your rental vacancies. It’s tough for tenants to find a rented apartment, and the average time it takes to find a suitable apartment is two to three months. [Zillow]

Tenant Statistics by State

14. California is the most expensive state to rent, and Los Angeles is the most expensive city

If you are a tenant in Los Angeles, you are probably paying the highest rent in the country. The average rent in Los Angeles is $2,600. [Earnest]

15. Mississippi is the cheapest state to live in the US

If Los Angeles is too expensive, then consider moving to Mississippi. This is one of the cheapest states to live in, with the cost of housing averaging $795 a month. [WorldPopulationReview]

16. Buffalo, NY has the lowest average rent from any large US city

You don’t need to live in a rural town to find a cheap place to rent. According to Kiplinger, Buffalo, NY, is the most affordable metropolitan city to rent an apartment. The median rent for an apartment is $860.

Miscellaneous Tenant Statistics

17. The average annual rate for renters insurance in 2021 is only $13

If you are a tenant, consider getting renters insurance. Not only is it cheap, but it can cover the cost of replacing personal items in the event of a flood, fire, or break-in. [MoneyGeek]

18. Seventy percent of households in New York rent an apartment or house

New York is top of the list for the percentage of families living in a rented apartment. [PRNewswire]

19. Fifty-one percent of renters look for apartments in small to medium size buildings

Several factors affect why most tenants want to live in an apartment in a medium-sized building. Costs and family size are the two primary ones. [Zillow]

20. 48 percent of renters want to live in a single-family home

Due to the pandemic, when living space became a priority, just under half of all tenants wanted to live in a single-family home, preferably with a front or back yard. [Zillow]

 

Topics: Landlord Advice