The Science of a Multifamily Lease-Up

When Ridgeview purchased the SkyHill Apartments last December, 18 out of the 36 units were vacant—50% of the property. We began renovating six units per month and had all 18 ready to rent by the end of March.

Sitting 50% vacant is not a comfortable position to remain in for very long. The negative cash flow at that level is significant, with tens of thousands of dollars lost each month. That’s when a strong lease-up strategy becomes critical—and it’s the focus of this week’s Ridgeview Report.

The challenge in a lease-up is finding the right balance—filling the building quickly while achieving the strongest rents possible. Move too slowly, and the ongoing cash burn eats into reserves. Drop rents too far, and it can take years to reach the property’s full income potential. Our typical goal during a prime leasing season is to secure six to eight leases per month. If we fall behind pace, we increase concessions; if demand is strong, we pull them back.

Side note: Leasing activity is highly seasonal, so it’s important to set expectations accordingly. In the winter months, renter inquiries drops dramatically, as much as 75%. Summer is typically the busiest time of year, while fall can also bring in a healthy level of traffic.

Leasing Incentives

In most cases, a lease-up strategy needs to include leasing incentives to get the apartments filled quickly. Our incentives scale with vacancy. If the property had only one vacant unit, no specials would be offered. But with 18 vacancies at SkyHill, we offered hefty concessions: one month free plus a $300 gift—tenant’s choice of a robot vacuum, AirPods, or a TV.

The priority at this stage is to fill the building with quality tenants—market rents will come later. Offering the right concessions at the right time helps attract applicants quickly without discounting rents more than necessary.

Pre-Lease Whenever Possible

We start leasing as soon as we take over a property, even if no units are finished. This might mean using interior photos from a different property and conducting tours while the unit is still under construction.

Leasing at this stage isn’t easy, but we’ve successfully filled many apartments this way, and it gives us a valuable head start in reducing those looming vacancies.

Turn Up Marketing Spend

During this period, we focus on our biggest renter lead sources and pay for premium placement to ensure maximum visibility. Our top platforms for leads today are Apartments.com, Zillow.com, and Apartments247. At one point, SkyHill was spending $2,000 per month across these services to boost our listings. This advertising spend gives our rental listing more visibility, reaching a wider pool of potential renters.

Turning Inquiries Into Leases

Leasing apartments is more than just answering emails and unlocking doors—it requires active salesmanship. Rental inquiries receive an immediate response by text first, followed by a call from an agent to answer questions and schedule tours, often in the same day.

Leasing agents use a CRM to track every inquiry, showing, and application. All applications and screenings are completed online, with approvals typically issued within 24 to 48 hours. These agents have refined the process, and they understand the importance of striking while the iron is hot.

Final Thoughts

A successful lease-up requires a strategy and execution. When a property is sitting at 50% vacancy, speed is critical. Our approach starts with leasing before renovations are finished, allowing us to begin building the pipeline right away. We invest heavily in boosting rental listings to maximize visibility. Finally, leasing agents move fast—responding to leads immediately, scheduling same-day tours, and processing applications online within 24–48 hours, making sure every lead is handled with urgency.

-Ben Michel

Ben Michel is the founder of Ridgeview Property Group, an investment firm specializing in multifamily real estate. Register Here to be notified of available investment opportunities.