Anyone else seeing higher vacancies lately?

Question

Hey everyone, I’m a property manager and also own 40 rentals myself here in Florida. Between my own units and the ones I manage, we’re sitting at around 300 total. Normally, we’re almost fully occupied, but right now I’ve got about 30 vacancies, definitely higher than usual.

Seems like tenants are slower to commit, more move-in delays, and fewer qualified applications overall. Rents are holding, but demand feels softer.

Here are some of the things I’m doing now, the same strategies I used back in 2008–2010 when the market cooled:

• Putting For Rent signs up wherever HOA allows (old-school still works)
• Teaming up with my property manager to get more exposure and push listings faster
• Sharing rentals on local Facebook and community groups
• Offering small move-in incentives or flexible deposits
• Pricing slightly below market to fill units faster, then adjusting later

Are other landlords doing something similar, or seeing better results with different approaches?

Drew Sygit · Answer

Days On Market have been increasing for several months:(

As a result, rents are also flatlining or decreasing.

The biggest challenge is getting owners to understand this as few actually follow any industry data.

One of the risks this will cause is lowering of screening thresholds to fill vacancies.

Add all the new AI-generated application fraud and it's a given that nonpayment, eviction & theft (fraudster tenants will also steal appliances +more) challenges will increase.

Create unique, attention getting ads & incentives, so your vacancies get more clicks!

Allison Park · Answer

I think it depends on the market and time of year.  Zillow has average time to rent and it has been pretty accurate for my area.

John Morgan · Answer

I’m in the Dallas area and market rent has dropped $150-$200/month in my area. My strategy is to offer my rentals about $200-$400/month under market rent to get a bigger pool of good qualified applicants. If I offer market rent or only $100 under market rent, I attract the undesirables. lol. If I have to go $300-$400 under market rent I will find good tenants that won’t ever want to leave which saves me a lot of money because I rarely ever have turnovers with my 31 SFR. Turnovers and vacancies eat up profits so I’d rather have people stay forever and make a little less rent then try and squeeze every penny out of tenants.

I blame a lot of this on accidental landlords jumping in the game recently and flooding the market because they can’t sell their homes. And most are locked in with a 3% interest rate so they can make a decent profit renting them out. So they rent their homes out becoming a first time landlord instead of selling.

And new multi family properties or renovated have been getting hammered with higher interest rates that have reset or weren’t budgeted for, so they are offering extremely lower rent and incentives for the time being to fill vacancies. This is all great news for tenants, but not easy for landlords who are only making $300-500/month expecting 2023 rent prices.

Adam Bartomeo · Answer

The vacancy rate has definitely increased over the past 2 years. It is 15% here in SWFL. We are currently at 7% and decreasing. We market on 30+ websites, FBM, our site, every property has a sign, drone video and photos, and we use AI to edit the photos. We also hired a leasing agent to help fill homes. We are continuing to create value for our owners and tenants.

Steve K. · Answer

I think the "accidental landlord" factor is part of this. The market has been stagnant with many properties sitting, and many sellers deciding to withdraw their listing and rent it for now instead of lowering their price enough to sell now. This has created "accidental landlords" and flooded the rental market with properties for rent. I see this in my area although inventory decreased a bit last month when interest rates dropped.

Isidoro Leon · Answer

Hello Jorge, I have a 2/2 unit in a fourplex in South Austin that I self-manage that has been vacant for 6 months now.  Austin is going through a housing market correction but this slowdown feels very different this time around.  There is a unit across the street from ours that is being advertised through Zillow by a real estate agent for just under 4 months now that and has received Zero inquiries let alone any submitted applications.  Our unit has generated over a dozen rental applications via Zillow but all have been way too risky.  Also, of all the strategies you mention, I have only tried the lower than market rent and, for a while, the 1 month rent free option but interest is still scary quiet.  I will go back to using a For Rent sign like back in the old days as well as and (for the time ever), try FB.  Thanks for the suggestions!

Ben Scott · Answer

Hey @Rhett Tullis, where can I find info on local NARPM meetings? I didn't know that group was active in Oklahoma. Thanks.

Rhett Tullis · Answer

Look for Oklahoma Narpm networking group on facebook and we will approve you for the group.  If you also can email me I can add you to the email list for future meet ups.

Amber Stout · Answer

Appreciate the tips for what you used back in 08-10. I have several rentals in the St.Petersburg market and we are having more vacancies than we've ever had and it's taking much longer to fill those vacancies.

Ben Scott · Answer

I'm a PM in Oklahoma City and it's pulling teeth to fill units. We're offering $500 off the first month and, in some cases against my better judgement, allowing tenants to pay security deposit over the first 3-4 months.

It's a pickle for tenants because it takes 30-45 days to get their previous deposit back, if they do. Not sure if it's the shutdown or economy but tenants seem to be scraping by?

Anyone else seeing higher vacancies lately?

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