Fannie Mae is a government-sponsored enterprise (GSE) that buys mortgages from lenders, freeing up money for those lenders to make additional loans and injecting liquidity into the lending industry. Earlier this year, the GSE predicted that “the national multifamily vacancy rate will increase” due to “the excess amount of supply” delivered in late 2024. [1]

A vacancy occurs in commercial multifamily apartments when a resident’s lease ends, they move out of their unit, and a new lease has not been executed, leaving the unit empty. Delinquency refers to the state a renter is in when past due on their rent. 

While property owners might work tirelessly to minimize vacancies and delinquencies, they must still know how to navigate their way out once they find themselves in this unfavorable situation. Let’s discuss mitigating lost income in multifamily real estate, including proactive leasing, dynamic pricing, and effective marketing strategies.

MITIGATING LOST INCOME

Mitigating lost income due to vacancies or nonpayment of rent requires proactive leasing and renewals, dynamic pricing (adjusting rents based on demand), effective marketing, and exemplary resident relations. Here are a few best practices to keep in mind when navigating or preventing income loss with a multifamily property:

• Proactive leasing: List the property or available units on a wide-ranging spectrum of platforms. Of course, Apartments.com and Zillow offer free basic-level plans, but you should consider budgeting for an upgraded plan with premium listing services. While these are two of the most well-known platforms, you might still seek lesser-known services at the community level, engaging collegiate social media groups (if that fits your market and resident profile) and the like to draw new residents. 
• Proactive renewals: Make the lease renewal process as effortless as possible. Research automated renewal services or build an in-house one-click renewal system. Ensure residents understand your lease renewal policies and offer incentives for early, error-free submissions.  
• Dynamic pricing: You could achieve competitive apartment pricing by adjusting rents in real time based on current market conditions/trends, seasonality, market occupancy levels, and competitor pricing. This would involve scrutiny similar to a comparative market analysis (CMA). Many experienced owners/operators use revenue management software or property management software with dynamic pricing tools.
• Effective marketing: Both online and offline marketing channels can draw new residents to your property. Consider highlighting the property’s unique selling points (resort-style amenities, luxury finishes, proximity to school or work, etc.). Invest in virtual touring technology to reach broader audiences. Use social media to post about vacancies and request to place fliers or yard signs in high-traffic areas. Effective marketing involves knowing the market, understanding what strategies work locally, and implementing those strategies.
• Exemplary resident relations: Hold space for resident concerns and take their complaints seriously. Offer clear communication and regularly update the apartment community on policy changes (kept to a minimum), weather alerts, events, and office hours (especially near holidays). Resident engagement can go a long way. Host a family-friendly game or movie night and consider offering adult-only events such as complimentary wine tasting or wellness programming.

WORK WITH BAM CAPITAL FOR MULTIFAMILY REAL ESTATE INVESTING

BAM Capital partners with accredited investors who want to enjoy passive income and all the other benefits of multifamily private placement. As the private equity arm of The BAM Companies, BAM Capital has been focusing on buying the most profitable assets and staying disciplined in its investment thesis. BAM Capital’s investment strategy aims to create forced appreciation while mitigating investor risk. To date, the brand has successfully managed over $1.7 billion in assets across ~9,000 apartment units.

Remember that no investment is risk-free. Before making financial decisions, consult your investment advisor and schedule a call with a BAM Capital investment team member.

Disclaimer: All investments carry risk, including potential loss of capital. This content is for informational purposes only and is not financial, legal, or investment advice, nor an offer or solicitation to buy or sell any security. Consult an independent advisor for personalized guidance and contact BAM Capital for details on current offerings. BAM Capital and its representatives are not fiduciaries or investment advisors. The information provided is general and may not reflect individual financial goals. Any financial terms, projections, or forward-looking statements contained herein are hypothetical in nature and should not be interpreted as guarantees of future performance or safety. Such statements reflect Bam Capital’s opinion and are subject to market fluctuations, economic conditions, and investment risks. Past performance does not predict future results. BAM Capital and its affiliates do not guarantee the accuracy or completeness of this information. Bam Capital offers investment opportunities under Rule 506(c) of Regulation D exclusively for accredited investors as defined by the SEC. Verification of accredited investor status is required prior to participating in any investment.

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SOURCES:

[1]: Fannie Mae. (2025). “Multifamily Economic and Market Commentary.” https://www.fanniemae.com/media/54646/display#:~:text=Vacancy%20Expected%20to%20Increase%20Briefly,5.75%25%20from%202005%20through%202022.