9012548 landlord market facts 2014 - foremost insurance · confidential - do not distribute 3...
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Confidential - Do Not Distribute Prepared by: Foremost Marketing Research (2014), 616.956.25142
TABLE OF CONTENTS
34567
12
Executive Summary
Methodology
Landlord Profile
Respondent ProfileMarket Trends
Demographics
Market Overview
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Foremost Insurance is pleased to present the 2014 Landlord Market Facts Study. The primary focus of our Landlord research was to better
quantify the rental property market in the United States. The data we’ve collected provides analysis and evaluation of the motivations and
attitudes of income property owners and the characteristics of their properties.
The research indicated the average landlord owns just a single property, with half of these dwellings purchased as a primary residence.
The overwhelming majority of properties in this study were of the single family variety without any form of owner occupancy. Income from
property ownership is used as a supplement form of revenue, as only 17% of respondents indicated it was their primary source of income.
60% of landlords in this study have owned income properties for more than six years. The vast majority of landlords seem relatively
content with their ownership situation with only 10% indicating they’d prefer to sell the property as soon as possible. Property turnover
seems to be relatively commonplace in the market, as 40% of landlords expect to sell within the next one to five years.
Perhaps indicative of the transient nature of the rental property market, 41% of properties in our survey experience some level of vacancy
during a typical year.
These factors make flexibility of insurance coverage an important consideration when selecting coverage. Foremost Insurance Group
offers specialty insurance for landlord, rental and vacant properties with programs that can be easily customized to meet the complex
needs of the rental property market.
Executive Summary
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Method • July 22 – August 27, 2014 • Email invitations were sent to members of SSI online survey panel • SSI provided pre-targeted panelists from their online consumer panel • Collected 6,095 completed surveys
Sample • Must own a residential property that is rented out for income, either part of the year or all year • Must be 18 years of age or older
11,241 interviews were started, resulting in 6,095 completed surveys; 4,406 failed to qualify, 740 failed to
complete entire survey, 6,095 completes came from targeted SSI sample (pre-screened for income property ownership),
54% incidence. Overall estimated incidence from SSI General population consumer panel ~2%.
Methodology
6,095 completed online surveys
Foremost is the
Landlord and Rental
Insurance Specialist®!
Respondent Profile Market Trends
61% of landlords have a four-year or advanced degree
61% of landlords own just one rental property
50% of single property landlords purchased the
dwelling as a primary residence
Property management is the primary income
source for 17% of landlords17%
60% have owned a rental
property or properties for more than five years60%
50%
61%
10% of landlords would prefer to
sell this property as soon as possible
40% of landlords anticipate selling property within
the next five years
41% of rental properties experience a period of
vacancy during a typical year
50% of landlords live within 30 minutes of
their rental property
10%
30 mins.
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Respondents by State
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Respondent Demographics
40% 60%
Gender
MaleFemale
8%
45% 36%
12% <1%
18 - 24 25 - 44 45 - 64 65 - 84 Over 85
Age
74%
8% 7% 7% 1% 3%
White Hispanic African American Asian American Indian / AlaskaNative
Other
Ethnicity
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<1% 9%
19%
11%
35%
26%
Less than High School High School / GED Some College Two-Year College Degree Four-Year College Degree Advanced Degree
Education
51%
12% 12% 9% 8% 3% 2% 1% 1%
Employed Full-Time Retired Self-Employed Homemaker Employed Part-Time
Student Out of Work -Looking
Unable to Work /Disabled
Out of Work - NotLooking
Employment
Respondent Demographics
51% have full-time jobs
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Respondent Demographics
69%
18%
8% 3% 1% Married Single Divorced Widowed Seperated
Marital Status
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Respondent Demographics
83%
54%
38% 36% 35%
9% 7% 7% 2% 7% Facebook YouTube LinkedIn Twitter Google+ MySpace Flickr Four Square Other I do not use any
social media sites
Social Media Usage
61%
15% 13% 4% 4% 1% 2%
Multiple times per day Once per day A few times per week Once per week A few times per month Once per month Less than once permonth
Social Media – Frequency of Exposure
93%of respondents use some form of social media
76% of users visit social mediasites at least once per day
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2% 3%
6%
10%
18% 18%
13%
9%
6% 5%
8%
3%
Less than$15,000
$15,000 -$24,999
$25,000 -$34,999
$35,000 -$49,999
$50,000 -$74,999
$75,000 -$99,999
$100,000 -$124,999
$125,000 -$149,999
$150,000 -$174,999
$175,000 -$199,999
$200,000 -$499,999
$500,000 ormore
Annual Household Income
Property Type Respondent Demographics
17%of landlords reported property ownership as their primary source of income
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Which of the following types of rental properties do you or
the members of your household currently own?
71%
16% 13% 15%
7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Single-Family* Single-Family Multi-Family Multi-Family Multi-Family[Owner Occupied] [Owner Occupied] [2,3,4 units] [5 or more units]
78%
12%
5% 2%
Single-Family Dwelling Type
House/Cottage
Condo
Mobile Home
Modular home
Property Type
71%
*Family residence that is not owner occupied for any part of the year.
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Property Ownership Detail
How many [rental properties] do you
currently own?
61%
31%
7%
Number of Properties Owned One Two to Four Five or More
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Rental Property Purchase Detail
12%
41%
37%
8%
Purchased as part of an LLC, trust or corp.
Purchased as an independent owner
Purchased as a primary residence
Inherited property
How did you come to own this rental property?
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Years as a Landlord
7%
34% 31%
12%
6%
11%
Less than one year One – Five Six – Ten Eleven – Fifteen Sixteen – Twenty More than twenty
1% 5%
24%
71%
Most Recent Purchase
Prior to 1960
1960 - 1979
1980 - 1999
2000 to present
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Distance to Rental Property
Roughly, how far is this rental property from your primary
residence or place of business?
50%
22%
28%
Drive Time
0 - 30 Minute31 Minutes - 2 hoursMore than 2 hours
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Year Property was Built*
*For landlords who own multiple properties, this assessment
is for the most recently purchased property
4% 8%
17%
46%
25%
Prior to 1900 1900 - 1929 1930 - 1959 1960 - 1999 2000 or newer
Future Ownership Intention* Prefer to sell ASAP 10%
Less than one year 4%
One – five years 26%
Six – ten years 18%
Eleven – fifteen years 8%
Sixteen – twenty years 5%
More than twenty years 7%
Don’t anticipate ever selling 22%
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Rental Property Locale by Property Type
Which of the above describe the area in which your rental property is located?
Suburbs 47% 34% 35% 43% 41%
Urban Area 27% 35% 48% 44% 45%
Country / Rural Area 18% 16% 14% 11% 5%
Coastal Area 7% 16% 11% 11% 13%
Condominium Development 4% 5% 6% 7% 23%
College Area 4% 9% 10% 6% 7%
Mountain Area 3% 9% 9% 5% 6%
Lake / River Front 3% 8% 5% 6% 6%
Golf Resort Area 1% 3% 2% 2% 4%
Mobile Home Park 1% 4% 3% 3% 4%
Hunting Area 1% 4% 4% 3% 3%
Ski Resort Area 1% 4% 3% 2% 4%
Retirement/Senior Complex 1% 2% 1% 1% 3%
Other / Another Resort Area 2% 5% 4% 3% 5%
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Condition of Rental Property
Which of the following best describes the condition
of this rental property?
65%
32%
3%
Property Assessment No Cosmetic ProblemsMinor Cosmetic ProblemsMajor Cosmetic Problems
62%of properties in an urban area have no cosmetic problems
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Value of Personal Property at Residence
What would you estimate is the total current value of all appliances and home furnishings you provide at this property?
Appliances Furnishings
$0 10% 56%
$100 - $1,000 26% 15%
$1,001 - $3,000 34% 10%
$3,001 - $5,000 15% 7%
$5,001 - $10,000 10% 6%
$10,001 - $20,000 4% 4%
$20,001 - $30,000 1% 1%
$30,001 - $50,000 - 1%
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Purchase Price of Property
4%
20%
25%
22%
12%
6% 7%
0%
5%
10%
15%
20%
25%
30%
Less than$20,000
$20,000 -$79,999
$80,000 -$149,999
$150,000 -$249,999
$250,000 -$349,999
$350,000 -$449,999
$450,000 ormore
What was the purchase price for this rental property?
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Typical Tenants
Which of the above best describes the typical tenants of this rental property?
Families with children
Tenants w/out pets
Tenants with pets
Single person
Families w/out children
Retired persons
College students
Graduate students
College staff / Faculty
Other
53%
45%
42%
29%
25%
16%
12%
10%
6%
2%
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Tenant Approval Sources
Credit reports
Check references
Require references
Length of employment
Criminal check
Bank / Income / Employment verification
Personally know the tenant
Intuition / Appearance
Property manager / Real estate agent / Partner decides
Eviction search
Skip trace
Other
54%
48%
44%
37%
36%
30%
27%
26%
24%
21%
7%
3% What criteria do you use to approve a tenant?
50+%more than 50% of tenants are screened through credit reports
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Property Management Tasks
Who usually handles the maintenance, upkeep and cleaning, and renter/tenant issues of this rental property?
46%
7%
25% 19%
2% 1%
68%
7% 4%
18%
3% <1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
I / We do Relative, friend,neighbor
Tenants PropertyManagement Co.
Real Estateagent
Other
Maintenance / Upkeep and Cleaning Renter / Tenant Issues
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Vacant Analysis
In a typical year, how many months is your rental property
without tenants or unoccupied?
59%
21%
11%
4% 5%
Never vacant 1 - 2 months 3 - 6 months 7 - 9 months 10 - 12 months