Recent data from Zelman & Associates reveals that total occupancy in single-family rentals fell to 91.7% in November, just above the all-time low of 91.5%. This decline underscores challenges for landlords as competition intensifies.
Key Factors Behind Declining Occupancy
Built-for-Rent Supply: An influx of new built-for-rent homes is increasing competition, putting pressure on older properties.
Aging Stock: Many homes are held off-market for repairs or upgrades to compete with newer units, temporarily reducing available inventory.
How Landlords Can Respond
Modernize Properties: Upgrades like energy-efficient systems and modern designs attract tenants.
Adjust Pricing: Competitive rent pricing reduces vacancy periods and ensures steady cash flow.
Focus on Retention: Strong tenant relationships and responsive management minimize turnover.
Staying Competitive
Despite low occupancy rates, landlords can navigate this challenging market by staying proactive.
Partnering with property management experts like Excalibur Homes can help you reduce vacancies, optimize rental income, and stay ahead of market trends.
Prepare for 2025 by aligning your strategy with the changing market—occupancy challenges can be opportunities with the right approach.
