Key Takeaways
Start preparing for a potential vacancy well before the current lease ends so marketing, showings, and leasing can overlap when appropriate.
Use recent comparable rentals and competing concessions to set a price that attracts attention without relying on an extended vacancy.
Treat renewal conversations as a vacancy-reduction strategy by giving current residents enough time to consider a reasonable renewal offer.
Keep the property competitive between leases by addressing maintenance needs and making targeted improvements that support its appeal.
For a while now, vacancy rates in the city have been climbing and now stand well above the national average, at 7.5% compared to 5.8%. For property investors here, finding a way to attract and retain good tenants has never been more important.
Many of the factors that determine how long your property sits vacant – such as your pricing strategy, marketing timeline, and how well you treat existing tenants – are firmly in your hands.
If you are a Phoenix, Arizona landlord struggling to find tenants, there is no need to waste time wishing for a return to those days when you could list a unit and fill it within a week.
Service Star Realty will show you how to minimize vacancies in your rental property without resorting to endless concessions like most landlords across the valley.
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The Phoenix Vacancy Reality
The last two years have seen a wave of multifamily construction across Phoenix, with tens of thousands of units delivered across Tempe, Downtown Phoenix, and the Southwest Valley.
This apartment boom has naturally led to a significant alteration of the rental market in the city as renters now have far more options than in the pre-pandemic era.
In high-supply submarkets like the three mentioned above, vacancy rates have surged into the double digits (over 11% in some areas) while average asking rents have moved in the opposite direction (dropping roughly 3%).
As a result, concession gifts have become the go-to option for landlords trying to fill units faster, a rather unsustainable approach.
Start Marketing 60 Days Before Move-Out
Your single biggest lever when trying to reduce vacancies in your Phoenix rental is timing. Waiting until a few days before your tenant’s move-out date to start marketing the unit is a huge mistake.
With that approach, you lose several weeks that could have gone into advertising the rental and screening applicants.
The better way is to view the last 60 days of a lease as your pre-marketing window and take the following steps as the lease end date approaches.
Send an Early Notice
Sending a written notice 60-90 days before the lease end date will prevent last-minute vacancies. Include a lease renewal offer with this notice and a deadline for your tenant to reply, along with move-out procedures if they choose not to renew.
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Initiate Pre-Marketing Steps
Once you receive notice of the tenant’s intention to move out or the deadline lapses without a firm commitment from them, you may schedule photography or a video walkthrough and publish your ad on major rental platforms with a clear move-in date tag.
Pre-Lease the Unit
Most times, you can pre-lease a unit to a tenant who is willing to sign a lease today but wait 30-45 days to move into the property. It is easier to get tenants to accept this if you offer a small discount on the first month to lock in the deal fast.
This overlap approach can help you avoid a 3–4-week vacancy. To make this strategy work, however, you must reach an agreement with the outgoing tenant for reasonable access to show the unit in the final weeks of their tenancy.
Price to Fill Fast, Not to Test the Market
Under different conditions, you may price your rental unit optimistically and wait. In today’s Phoenix market, that strategy will hurt you.
What you don’t want is for your ads to gain “stale listing” status on rental sites, causing search algorithms to suppress their visibility. Instead, you want to price the unit competitively by doing a rental analysis. Here's how:
- Analyze 3-5 comparable units (similar square footage, comparable finish levels and amenities) in your submarket from the last 30 days, priced at or slightly below the median rent.
Before setting the rent, consider competitors offering concessions – like a free week of rent or a waived application fee - and adjust your pricing to make sure the unit isn’t overpriced.
If you don’t get any serious inquiries after 7-10 days of listing, the unit is overpriced. Think of adjusting your price downwards.
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Retain Good Tenants With Smarter Renewal Timing
Retaining a good tenant, even for one additional year, is better than chasing higher rents with a new one. With early renewal talks and modest rent increases, you can get your current tenant to renew and save yourself thousands of dollars in vacancy and repair costs.
Early Renewal Talks
Uncertainty about a landlord’s next move can force good tenants to start shopping before their lease ends. Prevent that by giving your tenants time to plan; start renewal talks 90 days before the tenancy ends.
Keep the Rent Slightly Below-Market Rates
Offer the tenant a modest rent increase below the going rate (maybe a 3% to 5% increase to their current rent). Avoid big jumps that end up pushing tenants away.
Offer Retention Perks
These small rewards make good tenants feel valued. They can include things like priority attention to maintenance requests, or minor upgrades to their unit (a fresh coat of paint, updated fixtures).
The Bottom Line
The reality is that in 2026, Phoenix’s rental market rewards landlords who are flexible, quick to respond, and price their rental properties realistically. If you have more questions about reducing vacancy in your Phoenix rental, contact Service Star Realty today!
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Frequently Asked Questions
How Can Property Owners Determine Whether A Rent Reduction Is Worth The Cost?
A rent reduction should be evaluated against the potential cost of leaving the property vacant, rather than looking only at the monthly difference in rent.
Owners should compare recent, truly comparable rentals in the same submarket and account for concessions offered by competing properties. The right decision depends on the property, market conditions, carrying costs, and investment goals.
When Should A Landlord Start Preparing A Rental For Re-Leasing?
Owners can begin planning well before the current lease expires, with the specific timing depending on the lease terms, the resident's plans, and the property's condition.
If the home remains occupied, owners also need to coordinate access carefully and follow applicable Arizona requirements.
Starting early gives owners more time to make informed decisions instead of trying to solve pricing, maintenance, and marketing issues after the property is already vacant.
What Should Phoenix Landlords Consider Before Pre-Leasing An Occupied Property?
Owners should establish a reliable anticipated availability date, make sure the property's condition and expected turnover work support the advertised timing, and communicate clearly about showing arrangements.
Arizona law generally allows a landlord to exhibit an occupied dwelling to prospective tenants, but, except in emergencies or when impracticable, at least two days' notice of entry is generally required and entry must occur at reasonable times.
Which Property Improvements Can Help Reduce Vacancy?
Owners can prioritize repairs, cosmetic updates, and functional improvements that make the property competitive with similar rentals while supporting the property's long-term condition.
For an individual investment property, the appropriate improvements will depend on its condition, location, comparable rentals, budget, and expected return.
How Can A Property Manager Help Reduce Vacancy?
A property manager can take responsibility for several operational tasks that influence how efficiently a rental moves from one lease to the next.
For an owner, the potential value is having these functions coordinated through one management process rather than handling each task independently.
Whether professional management makes financial sense depends on the owner's portfolio, availability, experience, property needs, and investment objectives.
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Service Star Realty
1525 N Granite Reef #16, Scottsdale, AZ 85257
(480) 426-9696
