North Carolina is among the US states that have seen the highest increase in housing in the last year, ranking 5th in the fastest growth, with 365,000 new housing units by the end of 2025. It's good news for potential residents, but what about current landlords?
An increase in housing inventory can mean more competition, lower rent prices, and prolonged vacancies. In a growingly competitive rental market, certain practices and adjustments can be the difference between negative and positive cash flow.
Key Highlights:
- Rising inventory in Wake County intensifies competition: With North Carolina ranking among the fastest-growing states for new housing, landlords face increased competition, downward pressure on rents, and longer vacancy periods.
- Strategic pricing is critical to cash flow: Competitive rent pricing based on comparable properties, local market data, and demand helps balance faster leasing without sacrificing profitability.
- Property upgrades can significantly boost demand: Strong curb appeal, modern interior features, and energy-efficient or smart amenities increase renter interest and set listings apart.
- Effective marketing and visuals drive visibility: High-quality photos, video tours, SEO-optimized listings, and multi-platform marketing expand reach and improve search rankings.
- Retention and professional support reduce long-term vacancies: Tenant retention efforts and assistance from property managers or leasing specialists can minimize turnover and stabilize rental income.
Price Your Rental Competitively
Research comparable rentals in your area and adjust your rent accordingly. Pricing too high will keep your property vacant longer, while pricing too low can lead to negative cash flow. Pricing strategically means considering factors such as market demand and property features.
Use rental market reports and local listings to determine the average rental price in your area, and be sure to consider only similar properties that offer the same amenities and features as yours.
Upgrade Curb Appeal
You will need all the advantages you can get, and your curb appeal might just be the selling point you need to attract tenants. Visual appeal directly impacts renter interest. Properties that look inviting generate more inquiries.
Focus on things like clean landscaping, lawn care, a fresh coat of paint, updated siding, new or cleaned exterior lighting, a polished entryway, cleaned address signage, or new plants. Set a budget for your upgrades and check which ones would benefit you the most.
Improve Interior Features
Certain upgrades have a high return on attracting tenants. Research which features or amenities matter to you. Right now, the most sought-after amenities include modern kitchen appliances, smart home features, and updated bathrooms.
You can always go for sure-hits, like a fresh coat of paint, polished floors (if applicable), and in-unit laundry facilities. Always consider your target market before making updates. Energy-efficient features, for instance, will attract eco-conscious tenants.
Highlight Marketable Features
Make your property stand out by emphasizing what tenants want, such as pet-friendly policies or high-speed internet. Include other offerings like assigned parking, storage availability, proximity to transit, school, jobs, and entertainment.
Include these features in your listing, with some of the best features in the title. This will help rank higher in search results, whether through social media or browser searches. Learn how to apply search engine optimization (SEO) principles to increase visibility more effectively.
Use Quality Visuals
You’ll notice that all top-ranking rental listings feature high-quality photos that showcase the property’s features and highlight its selling points. Include every room and the exterior of your property to paint a vivid picture for potential tenants.
Make sure that your images or video tours are well-lit to make key features more visible. Many landlords choose to hire professional photographers because they have the equipment and expertise to capture their rental property more effectively.
Expand Your Marketing Reach
As important as SEO principles are, the best way to reach as many potential renters as possible is to post on several platforms. Research which websites and social media sites your target audience often uses, and focus on marketing your rental there.
Look into major rental websites like Zillow, Apartments.com, and Rent.com. Check other listings on social media platforms like Facebook and Instagram to learn the best way to advertise your property. For example, Instagram is best known for video walkthroughs.
Offer Limited Incentives
Your rental property itself should be the main reason tenants choose to rent from you, but incentives won’t hurt. You can offer one-time incentives such as gift baskets, coupons from local partners, or rent discounts for the first few months.
There are also limited-slot incentives, where the first few tenants who rent your property can receive perks such as free access to facilities, rent discounts, or unique upgrades to their rental unit. Be sure that these incentives will not cripple your income by calculating the return-on-investment on each perk.
Hire a Property Manager or Leasing Specialist
Professionals will have the tools and experience to shorten your vacancy time effectively, such as market-savvy pricing strategies, faster leasing processes, broader market reach, and tenant screening expertise.
Research leasing specialists or property managers in your area, as they will have a better understanding of the local rental market. Check online reviews to determine whether their services are of good quality, and ask comprehensive questions when inquiring.
Don’t Neglect Tenant Retention
With the efforts you put into maximum occupancy, you might unintentionally neglect your current residents. Remember that tenant retention is just as, if not more important than, attracting tenants. Losing renters will just add to your costs.
Conduct regular inspections, resolve tenant concerns, address maintenance requests, and efficiently handle all your property management duties. If you feel overwhelmed by everything you need to do, hiring help might be your best option.
Reducing Vacancy FAQs
Why is the housing inventory surge affecting vacancies in Wake County?
- An increase in housing inventory means more rental options for tenants. With more properties available, renters have greater negotiating power, which can lead to increased competition, lower rent prices, and longer vacancy periods for landlords.
How can landlords price rentals competitively without losing money?
- Landlords should analyze comparable properties with similar size, location, and amenities. Strategic pricing balances market demand with operating costs, ensuring the property rents quickly while maintaining positive cash flow.
Which upgrades have the highest impact on reducing vacancy?
- Curb appeal improvements, modern kitchen appliances, updated bathrooms, smart home features, and energy-efficient upgrades tend to attract the most tenant interest and provide strong returns on investment.
The Answer to Landlord Stress
With the increase in housing options in Wake County, it’s natural for landlords to start worrying about the performance of their rental business. Between turnovers and prolonged vacancies, a lot can negatively impact your cash flow.
Stressful conditions can affect how you handle landlord duties, and that’s what we at Encore Properties want you to prevent. With our resources and the years of experience under our belt, worrying will be the last thing you do.
Contact us to learn the benefits of hiring professional property managers.