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A report by Realpage Market Analytics found that multifamily occupancy rates are now at a 10-year low. The 94.1% nationwide average in occupancy rates in December of 2023 is the lowest recorded since January 2014. Although the biggest declines are being experienced in the South, all regions of the United States are experiencing this decline to some extent.
Though occupancy has recovered slightly this quarter since its all-time low, record supply is still causing higher than average vacancy rates. Market conditions greatly affect property managers and owners, and it's imperative to have strategies to weather the storm during uncertain periods.
If you’re active in any multifamily circles, you’re likely noticing a lot more calls for advice on how to handle this steep decline. One property manager in the San Diego area posted to a multifamily ShareSpace Facebook page, illustrating her problem:
This doesn’t signal a nail in the coffin to occupancy rates, though. Plenty of properties are pulling through by enacting more creative strategies to get new residents coming in the door (and keeping the residents they already have).
Here are some expert-recommended strategies for you to try if you’re struggling with keeping occupancy high.
Before you dive into implementing more novel strategies, you want to ensure that all of the table stakes strategies are up and running.
Run through the checklist below to see if you need to do any foundational work to nip any occupancy problems in the bud:
All of these components are critical to keeping a health flow of residents coming in, even in the stablest of times. This is the easiest place to start to plug any clear holes in your system.
However, during times of historically low occupancy rates, these strategies alone may not be enough. If you’re already checking these boxes and still struggling, it may be time to give some of these additional strategies below a try.
One of the most crucial steps in maintaining high occupancy — especially in tougher times — is understanding your competition. Undergoing a detailed comp study gives you valuable insights into what other properties in your area are offering and helps you identify your strengths.
Kelley Ann, a property manager we spoke to, gave us the following advice:
“Complete a thorough comp study to understand what your strengths are, figure out what your target market is, and make sure you’re marketing to THAT market.”
Getting crystal clear on what your property uniquely brings to the table in comparison to all of the other options around you enables you to tailor your messages to resonate strongly.
For example, if you discover that your competitors are offering similar amenities at a lower price, you might need to emphasize what makes your property unique. Maybe it's your excellent customer service, a prime location, or community events that foster a sense of belonging. By focusing on these strengths, you can attract renters who are looking for more than just the lowest price — they’re looking for a place to call home.
Marketing is your opportunity to stand out from the pack. When the supply of apartments outnumbers the demand from the market, this becomes an increasingly critical consideration. Simply getting in front of the right people with the right message quicker or better than your competition can mean the difference in units sitting empty or not.
The biggest marketing asset that you have is current residents who love you. In addition to setting up a referral program with residents, you can also leverage stories from happy residents. Whether you run an organic campaign on social media, a paid campaign, or use a more innovative approach like Rentgrata’s platform where prospective residents can talk directly to current residents, highlighting why your residents love you has a massive impact.
Jesse Holland, owner of Sunrise Management and Consulting, is an advocate for good old-fashioned marketing strategies. Strategies like putting up flyers at supermarkets or asking local pizza companies to put your flier on their pizza box in exchange for marketing in your complex have been used for decades for good reason.
A more targeted approach is also highly effective. Our property manager insiders group mentioned one strategy they've seen success from: emailing everyone who visited between 12-18 months ago. The timing will likely align with their current lease ending, helping you get in front of them at the perfect time when they may be looking to make a new place home.
The people on your team are one of the most valuable assets you have. In a crowded market, what often sets a property apart is not the physical amenities, but the level of service and the sense of community that your staff can provide. Investing in your staff by offering training on customer service, conflict resolution, and property management best practices can pay off significantly.
As Property Manager Dana Cochran put it,
“Gimmicks and free rent never work. They only draw in the under qualified prospects. You want to sell what others don’t have, you and your team! People want to see a real community and place to call home, rather than just a complex.”
Investing in not only thorough training for all staff, but also events to engage your residents and foster a sense of community will help keep occupancy high. Not only will this boost retention for current residents, but you can also highlight it for prospective residents.
Some things you can do to make this sense of community clear to prospective residents include:
In today’s rental market, pet policies can make or break a lease decision for many potential residents.
Victoria Cowart from PetScreening shared with us,
If your property is not pet-friendly or has restrictive policies, you could be missing out on a large segment of the market.
Reevaluate your pet acceptance policies to make them as inclusive as possible. Consider eliminating breed or weight restrictions, which can often be a deterrent for potential residents. Instead, implement a pet screening process that evaluates pets on an individual basis, allowing you to capture the pet-loving demographic while still maintaining safety and order within your community.
By promoting your property as “pet passionate,” you can appeal to a broader audience. In addition to a better screening system, you could also offer pet-friendly amenities like dog parks, pet washing stations, or even hosting pet-centered events. These efforts can help you attract and retain residents who view their pets as part of the family.
There are certain groups of people who are constantly on the hunt for new, flexible leases. If you’re struggling to boost your occupancy, targeting these communities and making it easy for them to find flexible solutions can unlock a new revenue stream.
Travel nurses, for example, are typically in one location for around 3 months, but their assignments can range from anywhere between 2 and 26 weeks. This makes them an ideal group to target with flexible leasing options.
Travel nurses are often looking for fully furnished, ready-to-move-in apartments that require minimal commitment, allowing them to focus on their demanding work schedules without the stress of securing long-term housing.
To reach them, you can consider partnering with healthcare organizations or staffing agencies that place travel nurses. You can also do targeted marketing that emphasizes flexible lease terms and, if it applies, proximity to major hospitals.
Military families are another great community to reach when you’re trying to boost occupancy. Military families often face the challenge of relocating due to new orders, sometimes on short notice. By offering short-term leases and military-friendly housing options, you can attract this community, particularly if your property is located near a military base.
One effective strategy is to run targeted ads at other Navy or military bases, especially if you’re located near one. Even if the base is not in the immediate vicinity, military personnel stationed there could be transferred to your area in the future.
You can also send out customized messages to previous residents who are in the military. One property manager has seen success sending out messages like the following:
There are few things that frustrate residents more than feeling like their feedback falls on deaf ears. Acting on feedback can have an immensely positive impact on not only your retention but also your ability to draw in new residents. Reputation management is a critical piece of keeping occupancy high, since a bad review can be a massive stop sign to a potential renter. Using feedback to continuously improve the resident experience will undoubtedly be reflected in your reviews.
Your reviews are also a great opportunity to see what went wrong with those who did leave, and make changes to avoid that in the future.
Regularly review move-out notices, follow up with prospects who chose other properties, and pay close attention to resident surveys and online reviews. These sources of feedback can give you in-depth insight into what you’re doing well and where there’s room for improvement.
“Sell the good, work to fix the bad, and use various marketing strategies to help tell the story that is conveyed,” Property Manager Katie Rigsby shared.
Parking options can be make or break for prospective residents. Regardless of how nice your amenities are, how updated your floorplans are, or even how competitive your rent pricing is, inadequate parking acts like a stop sign to those looking for a home.
Parking is consistently listed as one of the main deciding factors when renters are deciding on a property to lease.
There are several angles from which you can improve parking. One of the most common — and most impactful — areas for improvement is guest parking
For example, if you notice many people mentioning that the lack of guest parking was the deciding factor in renewing, you can look into new solutions to make it possible, such as implementing a solution that allows you to sublease empty spots on a short-term basis.
Improving parking operations may also include a better enforcement strategy, streamlined and transparent payment methods, and flexible pricing. When you get your parking in order, not only can you increase retention by minimizing frustration with current residents, but you can also have strong answers lined up when prospective residents hit you with questions about parking.
Although occupancy fluctuates often in the national multifamily industry, it doesn’t mean that you need to just accept that fate. There are plenty of ways to experiment, invest in improvement, and generate some really impactful strategies to keep your units filled, even if your neighboring properties sit empty.
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