9012548 Landlord Market Facts 2014 - Foremost Insurance · Conﬁdential - Do Not Distribute 3 Prepared by: Foremost Marketing Research (2014), 616.956.2514 Foremost Insurance is

2014Landlord Market Facts

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


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


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.

Prepared by: Foremost Marketing Research (2014), 616.956.25145

Prepared by: Foremost Marketing Research (2014), 616.956.2514Confidential - Do Not Distribute 6

Respondents by State


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


<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


51% have full-time jobs



69%

18%

8% 3% 1% Married Single Divorced Widowed Seperated

Marital Status



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


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


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.


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


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?


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


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


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%


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%


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


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%


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?


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%


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


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


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

2014 Landlord Market Facts

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Documents

9012548 Landlord Market Facts 2014 - Foremost Insurance · Conﬁdential - Do Not Distribute 3 Prepared by: Foremost Marketing Research (2014), 616.956.2514 Foremost Insurance is