S
ome people believe that landlords collude to keep rents high, a notion reinforced by software that advises them on pricing. However, even when the pandemic led to widespread rent cuts, conspiracy theorists dismissed it as an anomaly. In reality, cities with oversupply of apartments saw rents fall. Austin and Nashville are examples, where new construction outpaced demand.

    A landlord in Austin, Henry Gifford, validated this point by sharing his experience. During the pandemic, he received rent increases on every renewal due to a lack of new supply. However, since then, numerous new rental buildings have come online, and his rents have remained stable or even decreased. Gifford attributes this to people being economic rational actors, but notes that some tenants prioritize amenities over cost.

    Gifford uses RealPage software, which suggests optimal rent prices based on market data. However, he doesn't see maximizing rents as the smartest strategy, citing high turnover costs and burnout for his local manager. He prioritizes retention by offering breaks to reliable tenants and even going above and beyond to address maintenance issues.

    For instance, when a tenant complained about noise from their AC unit, Gifford flew from New York City to Austin to fix it himself. He also allowed a couple to build a chicken coop on his property, reasoning that it would encourage them to stay long-term. While this approach doesn't always work out, Gifford believes it's worth trying to retain good tenants and minimize vacancies.