If you own rental property, you’ve probably noticed something different this year: homes are sitting vacant longer. And this isn’t just happening here in Anderson; it’s a nationwide shift. Understanding why this is happening is key to protecting your returns.
Why Vacancies Are Lasting Longer
The rental market today looks very different from it did just a few years ago. The biggest driver? Tenants aren’t moving as much.
With higher costs across the board, moving expenses, deposits, and rent increases, many renters are choosing to stay put. That sounds positive on the surface, but there’s a tradeoff: when a vacancy does occur, it’s taking longer to fill.
At the same time, competition has increased. Multifamily projects that broke ground during the low-interest-rate era are now fully delivered and competing for renters. Many of these communities are offering aggressive concessions: think free rent or discounted lease terms, to stabilize occupancy. Single-family homes can’t (and shouldn’t) compete with those tactics dollar for dollar.
The Real Cost of Vacancy
Most landlords focus on the rent they’re “missing” during a vacancy, but that’s only part of the picture.
Let’s run the numbers:
Market rent: $1,600/month
Vacancy: 90 days
Lost rent alone: $4,800
Now add utilities, lawn care, routine maintenance, and unit turn costs during that vacancy. Suddenly, that empty home has cost closer to $6,000.
Compare that to a $100 rent reduction:
New rent: $1,500/month
Annual impact: $1,200
It would take five full years of that lower rent to equal the loss from just three months of vacancy. The math isn’t emotional; it’s practical.
What Smart Landlords Are Doing Right Now
The most successful owners are prioritizing occupancy and annual cash flow, not peak rent. That doesn’t mean underpricing a property; it means pricing it correctly for today’s market.
Here’s the key mindset shift:
You can always adjust rent at renewal.
You can’t recover lost income from the months a property sat empty.
Looking Ahead
There is good news. New multifamily construction has slowed dramatically as higher interest rates and construction costs have made new projects less feasible. Many analysts expect this to tighten rental supply over the next 12–18 months, creating better conditions for landlords.
Single-family rentals remain an excellent long-term investment. The owners who win are the ones who adapt to current conditions, not those clinging to peak-market pricing from 2022 or 2023.
The Most Common Mistake We See
Anchoring to old rent numbers.
If your property was last leased during the peak of the rental market, those rates reflected an unusually tight environment. Today’s market has normalized. Holding out for yesterday’s pricing often results in extended vacancy and lower returns overall.
A Practical Strategy That Works
When your property manager recommends a rent adjustment, it’s not about lowering your income. It’s about maximizing your annual return.
Property managers see real-time leasing data across dozens (or hundreds) of homes. They know what’s renting, and what’s sitting. Their guidance is based on market behavior, not theory.
Right now, occupancy beats optimization.
The Simple Formula
We own and manage a large portfolio of single-family rentals, and yes, we’ve run the models. The conclusion is remarkably straightforward:
Lower the rent.
That’s it. Lower it now. Keep the property producing. Re-fight the pricing battle when the market swings back in your favor.
At Foothills Property Management of Anderson, we’re always happy to talk through your rental strategy, pricing, and market positioning. Long-term wealth isn’t built by maximizing one month’s rent; it’s built by keeping good properties occupied and performing year after year