New Survey Reveals Lack of Preparedness of American Tenants

By Cassandre Juste

Landlords are well aware of the importance of things such as maintenance, security and insurance, especially when it can be a liability for landlords.  But do tenants understand the importance of these issues as well?  According to the latest research by Rent.com the answer is no.  After conducting a survey of 1,000 renters, it was shown that these crucial issues are often severely neglected.

In terms of emergency procedures, Rent.com found that 35 percent of renters have no plan for safety in case of an emergency.  Of those who do have an emergency safety plan, 54 percent are solely focused on fire emergencies and do not address other emergency situations.  The highest degree of emergency preparedness was found among renters between the ages of 45 and 64 years old who live in the earthquake-prone American West Coast.  Among tenants in the Midwest who often face tornadoes and droughts, a mere 36 percent are prepared for a natural disaster.

The survey also showed that as renters get older, there is a decrease in the frequency of routine household maintenance.  Crucial tasks such as updating smoke alarm batteries, changing air filters, checking door locks, windows and lighting tend to get overlooked.  Among renters 18-24 years of age, 27 percent make apartment safety a priority and perform maintenance about once a month.  Another 25 percent do it quarterly.  However, old age is not the only culprit resulting in neglected maintenance.  While it may sound like a no-brainer to some, 21 percent of 18-24 year old renters did not realize they were supposed to perform maintenance at all. Among renters in the 45-64 age range, conduct maintence a mere once a year.

What was discovered regarding insurance was particularly unexpected: over 55 percent of renters do not feel safe in their apartment and surrounding areas, however, 60 percent of them do not have renter’s insurance.  Among the uninsured renters, 60 percent claim they do not carry coverage because it is too costly. On the contrary, the National Association of Insurance Companies estimates that the median premium payment for renter’s insurance is just $15.75 per month.
Because this coverage does not protect the structure itself (which is covered by the property owner) coverage is fairly affordable for renters.  Renter’s coverage, coupled with liability coverage, essentially covers tenants’ prized possessions – that new 72 inch television purchased on Black Friday, the $600 smartphone that is permanently attached to one’s fingertips, etc.

Rent.com explains that the cost of insurance is very inexpensive when compared to other daily expenses. Renters insurance would be less than:

• The $80 a month that half of the American workforce spends buying coffee
• The approximately $148 a month more than half of American workers pay for lunch
• The cost of two movie tickets, at the national average of about $8 each

The other renters who don’t carry insurance say they either do not understand it or do not think it is important.  However, a quarter of renters who had to utilize their insurance found it helpful and the majority of respondents said that it helped to replace lost items or provided reimbursement.  Every renter in the 18-24 years old and 65 and older age groups, who utilized their insurance in the past, found it to be of use.