Vacancy is a costly problem in multifamily, and with rising turnover and shifting renter preferences, keeping units full requires more than simply listing them. In 2024, the multifamily industry spent an estimated $7 billion on marketing to fill the ~1.9M vacant units nationwide. In Q1 2025, the U.S. rental vacancy rate rose to 7.1%, an increase from 6.6% in 2024. But that doesn’t mean high vacancy is inevitable for all property owners. Operators who take a proactive approach can drive stronger occupancy, smoother operations, and ultimately, higher NOI.
Reducing vacancy and boosting NOI in today’s multifamily market takes more than traditional leasing tactics. Operators need to think like revenue managers, leveraging dynamic pricing, maximizing vacant units, and diversifying renter types with flexible, furnished options. It’s also critical to tap into underutilized channels like corporate housing and search-based marketing while proactively managing lease expirations.
Key Levers to Improve Vacancy and Multifamily NOI
Leverage Dynamic Pricing to Stay Competitive
Pricing is one of the fastest ways to influence occupancy in multifamily assets. Static rent structures can cause properties to underperform, especially in volatile markets. Leveraging dynamic pricing tools can help you adjust rates in real-time based on: seasonality, lead time, competitor benchmarking and forecasted demand.
When implementing value-based pricing, it’s important to balance both the base rent as well as the concession to create value for the customer. And remember, while pricing can maximize conversion, it cannot create demand.
Reframe Your Inventory Performance Measurement
Multifamily assets are analogous to hotels and airlines in that an unoccupied unit on any given day represents a lost revenue opportunity. Consider evaluating your performance at a ‘revenue per available unit’ level vs the traditional view of occupancy and average rental price. Revenue per available unit helps better identify how large gaps in between tenants may be hurting your bottom line. For example, on a 300 unit property, every single percentage of vacancy could reduce the building’s value by $1.2M.
Diversify Your Customer Mix
In order to maximize occupancy, it’s crucial to diversify your renter mix beyond traditional 12-month lease holders. For example, there is a growing segment of renters searching for “flexible stays” (furnished apartments with leases less than one year), and by catering to this cohort, properties can drive higher NOI in two ways:
- Customers are willing to pay $600 to $800 above the market rent for furnished homes and lease flexibility.
- Properties do not need to be as aggressive on pricing/concessions as there are less vacant units at their property.
However, to be able to effectively execute flexible stays requires a large investment in resources (people, software, furnishings, etc), so finding a partner who can do all the heavy lifting is key. Landing, one of the nation’s largest flexible housing providers, has partnered with thousands of properties across the country with this model and has driven over $500M in revenue over the past 4 years.
The average Landing property partner sees a NOI increase of $18K per unit, driving significant incremental revenue vs. a vacant unit.
Utilize All Demand Channels
It’s no longer enough to rely solely on ILSs like Apartments.com or Zillow. Today’s renters discover properties through a multitude of channels: 98% of apartment seekers start their search online and 82% use at least three services before purchasing.
At Landing, we have seen that maximizing performance from search engines, AI tools, and listing sites is critical in keeping demand levels elevated. Investing in SEO/SEM strategies that compliment your core demand strategies can help drive the last bit of demand and reduce vacancy.
Tap Into Corporate Demand
Corporate travelers, relocation clients, and insurance-displaced residents represent high-intent, low-friction demand streams, often with premium budgets. Partnering with corporate housing platforms or local employers can open new demand pipelines for stays that don’t cannibalize long-term occupancy.
This strategy works especially well for:
- Properties near business districts, hospitals, or universities
- Portfolios trying to smooth demand across seasons
- Premium properties that have high rental rates but are seeing a softening in occupancy
While certain properties will have corporate demand that is well known (such as a Fortune 500 company’s headquarters nearby), there are plenty of SMB opportunities as well.
Proactively Manage Lease Expirations
Poor lease expiration management can create lumpy vacancy, especially in seasonal markets. If too many leases end during low-demand periods (e.g., winter), you’ll struggle to backfill. As part of the lease management strategy, ensure that the lease expiration curve is closely monitored and managed.
Build a cadence around:
- Staggering lease terms (e.g., offering 9 or 13-month options), including utilizing pricing that seems counterintuitive with lower rates for longer lease periods if it covers a low demand period.
- Monitoring expiration curves by property, evaluating future occupancy across the next 12 months.
- Offering early lease renewal incentives
If this has been a struggle for you, leveraging a partner like Landing can help bring stability – and additional revenue – during your low-demand seasons.
Multifamily Management in the Digital Age
In today’s multifamily market, reducing vacancy means more than just filling empty units. It’s about being proactive, flexible, and tuned into what renters actually want. From dynamic pricing and optimized online experiences to diversifying your customer base with furnished and flexible leasing options, staying competitive requires operators to execute across multiple fronts.
At Landing, we’ve spent years mastering these strategies, helping property partners nationwide simplify vacancy management and tap into new revenue opportunities. Our furnished apartment solutions, advanced pricing approach, and tech-driven leasing tools make it easier for operators to meet evolving renter demands, so you can focus less on empty units and more on maximizing NOI.
Want to learn more? Connect with us to join the 350+ properties we currently partner with.
