Consider pricing and incentives

To counter a tiny 7.6% national vacancy rate, landlords are offering discounts, free months’ rent, and gift cards, which have become standard marketing tools.

Use social media

If you don’t have a robust social media campaign with compelling, snappy walk-through videos of stylish, modern apartments, you will be left behind by the competition. The hard sell isn’t always the most effective tool to draw viewers. Offer practical tips and educational advice to attract potential clients.

The power of retention

Nationwide, about 6 out of 10 tenants are renewing leases. Midwest markets like suburban Chicago and Lafayette, Indiana, see those rates above 70%. Renewing leases is far more cost-effective than finding new tenants.

Demand drivers

Rental demand remains high due to high house prices and interest rates, and construction is limited in many areas. Even though markets have softened from post-pandemic peaks, rent prices remain roughly 15% above 2019 levels.

Appealing to would-be homebuyers priced out of the owner-occupant market by offering rents marginally lower than the competition’s could be a winning strategy in a tight market.

Vet management thoroughly

Paying slightly more for a reputable property manager who is acutely familiar with the local market and good at maintaining high occupancy will pay dividends in the long run.

Final Thoughts

There’s no one-size-fits-all solution for the current rental market. While overall it has softened in certain areas, particularly in the Sunbelt and some pricey coastal metro markets, there is still plenty of competition in other areas such as the Midwest, tech cities, and even small-town America to keep units filled, provided landlords offer an attractive, stylish product with amenities such as washer/dryers and a dishwasher, an open-plan layout, and modern finishes—and price competitively.

In this market, it’s not all about squeezing tenants for every penny from the start, but rather attracting them with a reasonable rental price and renewing their leases so they stick around and you remain vacancy-free.

I concur wholeheartedly with the last sentence of that post.

As long as I keep the rents close to market it pays for me to keep the tenants in the rental.

There is a shelf life to tenants. 3-4 years and then, like fish, some start to stink. Their place is no longer fresh and new - contempt for the known sets in - they want a new place but they don't want or can't afford to move.

And we can't help - we are not going to paint or re-floor or renovate a kitchen or bath with a tenant in place.

As Mom & Pops without a rehab crew to go in at turnovers though, it takes us longer to refresh an empty space. Usually we can charge more then though, so there's that. Plus just keeping the places up over time is important.

As always, there are exceptions to the rule.

I have two sets of tenants that have been in since 2022 that keep the place near perfect.

Have been in the apartments and I can honestly say they are rent ready, or super close to it, right now.

Another family in a nearby town has been there since 2023. I went in there, with only a knock at the door as warning, and the place is great. Lived in, but not trashed. Plus they have a bigger dog and a small child.

I have been choosing better the past few years. I have been lucky as well I guess.

Then there is only my not-mover tenant that I want out. Bought a house in Sep, has since moved into it, but still renting my apartment because it is full of stuff. Expensive u-store-it building.

She has been there since 2019, and the place is nowhere close to perfect. I should have rehabbed it before she moved in tho, so I will give her a bit on that. I have everything to redo her entire apartment. It is just sitting and waiting.