Why does a multifamily owner or property manager create vacancy? Strategic vacancy is always planned and has a purpose. Usually, that purpose is increasing rents, but it could be to retain customers in a tough market where absorption is slow.
As you know, rent is not always about price; we provide a service and our customers are looking for a comfortable place, a peaceable place to reside and security. If everyone in your market is at the exact same price point, then our potential customers are going to gravitate to the place they perceive provides the most value at that price.
The “differentiation” we create can sometimes include nothing more than color or freshness. Other times the changes are more overt like new… everything. Most times these changes are something in between. Tracking changes in rents on a real-time basis allows management to ascertain the potential increase in rents from implemented upgrades.
Read more...Property Management: The Case for Strategic Vacancy | Multifamily Insight Blog