What's Your Best Tip for Reducing Vacancy?

Question

Whether it's better marketing, faster maintenance, competitive pricing, or tenant communication, what's made the biggest difference in keeping your units occupied?

Richard F. · Answer

There is no ONE thing that makes the difference.

The overall quality of the unit/property is a major factor for attracting the best tenants for the price tier. Proper Rental Preparation prior to showing/movein, combined with prompt and effective response for service requests during tenancy is key to keeping quality tenants satisfied.

Effective screening will weed out those lower quality applicants that have a history of frequent moves and/or are likely to become troublesome to the point you would eventually want them out anyway. This is the most critical task of a PM.

Annual inspections, combined with brief conversation with tenants to determine their current needs/plans; and reviewing current market conditions gives you the opportunity to adjust your renewal offer according to current facts and conditions while maintaining fair pricing for tenant and owner alike.

Mike Fisher · Answer

Good question. The other replies nailed pricing and turnover speed, so I'll add the angle that moved the needle most for me: attack vacancy before the unit is ever empty.

I've invested in and managed Chicago-area rentals since 1991, mostly in the south and southwest suburbs, and the pattern is consistent. My two biggest levers are lease-end timing and proactive renewals.

1. Time your lease expirations to the strong leasing season. In a freeze-thaw market like Chicagoland, a lease that ends in December or January re-rents slowly and at a discount. When I sign or renew, I try to land the next expiration in late spring or summer. If a tenant does leave, I'm then marketing into peak demand instead of a dead month. On a mid-lease move-out I'll sometimes offer a slightly longer or shorter term on purpose just to reset that expiration to the right season.

2. Start the renewal conversation early, around 90 days out, not 30. Ask about their plans, whether anything in the unit needs attention, and put a fair renewal number in front of them well before they start looking elsewhere. A modest, market-aware renewal that keeps a good paying tenant almost always beats chasing the last $25 or $50. Run the real math: one month vacant plus the turn (clean, paint, leasing time, a possible concession) usually costs more than a full year of that rent bump you were reaching for.

3. Make the current tenant want to stay. Fast, respectful maintenance response during the tenancy is what earns the renewal. The residents who feel taken care of are the ones who quietly re-sign and never test the market.

Reducing vacancy is really about not opening the gap in the first place. Screening and pricing get most of the attention and they matter, but the retention side is where I've kept units occupied for years at a stretch.

I run MF CashFlow Property Management out of New Lenox, IL, so I watch this play out across the south suburbs every leasing season.

Jim Johnson · Answer

I'd rank them like this:

1. Retain good residents whenever it makes sense.
2. Price the property based on the current market, not last year's market.
3. Standardize your turnover process so the unit is ready as quickly as possible.

None of those completely eliminate vacancy, but together they've had the biggest impact on keeping properties occupied over the long term.

Marc Winter · Answer

We've found a professional level of communication and prompt responses to maintenance requests are the ticket to tenant retention.

Billy Smith · Answer

I keep my price a tad below market in A-B area keep the property in good condition ,answer the phone as soon as they call .Last time I rented out a property first call rented it .

Stuart Udis · Answer

Quality housing in desirable areas with barriers to entry. It’s really that simple.

When people want to live somewhere and supply is limited, tenants stay longer. When they do leave, the property gets filled quickly by highly qualified tenants.

The same real estate allows owners to provide better customer service. Regular preventative maintenance, and extermination services are rounding errors. When larger CapEx items arise, the underlying real estate value can support proper repairs or full system replacements. That’s often not the case with lower tier real estate, where thin margins lead to band aid fixes, recurring maintenance calls, and unnecessary tenant friction.

It never ceases to amaze me why so many people continue to overcomplicate residential and multifamily real estate.

Mohammed Rahman · Answer

I’d probably put pricing at the top of the list. The rent needs to reflect what tenants are willing to pay today, not necessarily what you’d like to get or what a similar unit was getting a year ago.

I’d keep an eye on how quickly comparable units are getting rented and adjust if you’re not getting enough interest. Sometimes dropping the asking rent a little is better than letting the property sit while waiting for that perfect tenant.

I’d also make the listing easy to act on. Good photos, clear information, and quick responses can make a big difference once someone starts looking.

Bill B. · Answer

Most repairs are done the same day, I ASSUME that's huge to a tenant. BUT, property type probably makes the biggest difference over time. If you have a studio/1bd condo, you're going to have a lot of 1 year tenants. MAYBE you could get lucky and find a long term senior. But with 3-4 bed SFR I'm literally surprised when someone stays less than 4 years. They have kids with local friends and schools, they have a garage and a yard my only competition is other homes. My average is currently 7.8 years. But that's skewed lower by a couple of covid vacancies. I have 3 properties with their original tenants after 12+ years. Tenants can imagine a rented home is their purchased home. An apartment is obviously an apartment, something many consider a stepping stone to home ownership.

TLDR: The property you buy will probably make the most difference. Buy the right type of property in the right market and people will stay a long time unless you screw up. People hate to move.

What's Your Best Tip for Reducing Vacancy?

What's Your Best Tip for Reducing Vacancy?

Most Popular Reply

12 Replies