The Power of Vacancy in a Down Economy

Yesterday I moved my residence to an apartment complex.  The complex is very nice, has very strict requirements and many amenities including, but not limited to, a pool, exercise room, built in laundry facilities, and so forth.

To apply for an apartment in this particular complex, they ask for three references per person, two pay stubs, the ability to call and verify former living arrangements, and employment for each tenant along with other verifications.

Being a busy person who does not keep pay stubs, I turned in only two pay stubs from December and two references.  The complex never called my references, never called my job, and never called my former landlord.  For all they knew I could be jobless and simply applying so I can squat in a nice apartment for 90 days till they can evict me!

This proves the power of the vacancy.  If you have 250 units and charge over $1,000 a month, not having those units filled is terrible.  That is $12,000 or more you lose per unit, per year!  This is the basis we use for landlord negotiations.  Your landlord does not want a vacancy.  They want a stable tenant.  Would they rather have a lower monthly payment they can count on, or an empty slot?  They may get a tenant who will come in and pay more, but a bird in the hand is better than one in the bush and these days the bushes are close to empty.  If they are thinking with their wallet, which most do, they would rather reduce your rent than have a hole in profit.  They may own the building, but in a down economy, you have the power.