The U.S. rental market continues to represent a significant opportunity for landlords and property managers. Millions of Americans rent their homes, and many renters are moving, renewing leases and navigating an increasingly competitive housing market.
But a growing renter market also means landlords need to pay close attention to risk.
One area that deserves particular attention is renters insurance. According to Zillow’s Consumer Housing Trends research, just 48% of renters reported having renters insurance, while only 32% said their landlord or property manager required it.
For landlords, the numbers shed light on an important consideration: How can they protect their rental properties while also making informed decisions about their tenants?
A Large and Active Renter Market
Zillow’s 2025 Consumer Housing Trends Report provides a snapshot of today’s renters. The nationally representative study surveyed more than 24,400 renters between March and July 2025.
The research found that 66% of renters are considering moving within the next three years. Among recent renters who expect to move within the next year, 59% said they plan to continue renting.
For landlords and property managers, that continued renter mobility creates an ongoing pool of prospective tenants. It also makes an effective tenant screening process increasingly important.
Every new lease represents a business decision. Landlords need to evaluate whether a prospective tenant is likely to meet their financial obligations, follow the terms of a lease and be a responsible occupant of the property.
Renters Insurance Can Be Part of a Broader Risk Strategy
Renters insurance can provide an additional layer of protection for both tenants and landlords.
A landlord’s insurance policy generally protects the physical structure of a property, but it typically does not cover a tenant’s personal belongings. Renters insurance can help tenants protect their possessions and may also provide liability coverage.
Yet Zillow’s research indicates that more than half of renters do not report having renters insurance.
Landlords can help close that gap by clearly communicating insurance requirements to prospective tenants and making those requirements part of the leasing process. Requiring renters insurance may also help reduce potential disputes over personal property or liability when unexpected events occur.
But renters insurance is only one component of effective rental-property risk management.
Tenant Screening Is the First Line of Defense
Before a lease is signed, landlords have an opportunity to evaluate potential risks through a comprehensive tenant screening process.
Background screening can provide insight into information that may not be apparent from a rental application alone. Depending on the screening services used, landlords may be able to review information such as criminal history, eviction records, credit history and other relevant data.
A thorough screening process can help landlords make more informed leasing decisions while creating a consistent process for evaluating prospective tenants.
This matters because the cost of a poor leasing decision can extend far beyond missed rent. Property damage, eviction proceedings, legal expenses and extended vacancies can all affect a landlord’s bottom line.
More Renters, More Need for Consistent Screening
The continued strength of the rental market makes consistency particularly important.
Zillow’s 2025 research also found that 62% of renters prefer to apply for a rental online, while 40% of recent renters said they signed their lease electronically.
As more of the rental process moves online, landlords and property managers need screening solutions that can provide reliable information without creating unnecessary delays for prospective tenants.
A streamlined, consistent screening process can help landlords evaluate applicants efficiently while maintaining the same standards across their properties.
Better Data Supports Better Risk Management
Landlords can’t eliminate every potential risk associated with renting a property. But they can take steps to make better-informed decisions.
That starts with having access to accurate, relevant information before entering into a lease agreement.
ZipReports provides background screening solutions that give landlords and property managers the data they need to make more informed leasing decisions and strengthen rental-property risk management.
Want to strengthen your tenant screening process? Learn how ZipReports can help you make more confident leasing decisions.
