Vacancy rates in Spokane County have been on the rise since Q1 2021, currently averaging 7.7%, a significant increase from the 3% seen in 2021. In my daily conversations with Spokane County multifamily owners, many are experiencing more and longer vacancies before their units are filled. Here are some ideas for multifamily owners to help attract tenants and fill their units:
- Move-In Specials: Offer a gift card to tenants for local restaurants, coffee shops, or Amazon upon signing the lease
- Referral Bonuses: Offer current tenants incentives (cash or rent discounts) for referring new tenants
- Allowing Pets: Attract a wider range of tenants, but be sure to include stipulations in your lease to prevent pets from causing disruptions to other tenants or property damage
- Creative Marketing: Use platforms such as Facebook Marketplace and Craigslist, in addition to traditional websites like Apartments.com and Zillow to advertise units for rent
- Waive Application Fee: Remove the financial barrier of application fees
- Shorter Lease Terms: Provide flexible lease options (6 months vs. 12 months) to attract tenants seeking shorter commitments
- Free Amenities: If you charge for amenities like garages, storage, or gym access, consider offering them for free for a limited time
- 1-2 Months of Free Rent: While this results in an upfront loss, it helps justify higher long term rents, benefiting both landlords and lenders
- Lower Rents: While not ideal, reducing rents can help fill vacancies quickly
Some owners may choose to keep rents unchanged and forgo incentives, even when faced with longer vacancies. However, for owners with upcoming maturing loans or those planning to sell, using some of these strategies could help fill units faster and meet lender expectations for lower vacancy rates.
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Jordan Lester, CCIM, MBA specializes in advising clients with the acquisition and disposition of multifamily investment properties. With a primary focus in Spokane County and an expert understanding of the latest market trends, Jordan is committed to maximizing his client’s financial goals to achieve their real estate objectives. To get in touch with Jordan, email jordan.lester@svn.com or call 509.496.6922