Vacancy Kills Cash Flow. Here’s How We’re Fighting Back
Staying informed is the key to making smart investment decisions. This month, we’re looking at Houston rental market trends, Emerson portfolio performance, and practical strategies to protect cash flow and strengthen long-term returns.
📊 Portfolio Performance at a Glance
Rent Collection Rate: 93.4% (vs. 92.6% Houston average)
Eviction Rate: 1.2% (vs. ~9% Houston average)
Occupancy Rate: 88.7% (vs. 90.8% Houston average)
Rent collection continues to hold steady in the low-to-mid 90s. While this matches the broader market, our goal is always to exceed it. A key focus area right now is Houston’s new eviction laws, which are reshaping how quickly owners can remove non-paying tenants. We’ll provide a detailed breakdown of these changes later this year.
Evictions are up slightly compared to past years, though our rate (1.2%) is still dramatically below the Houston average of ~9%. We’ll be conducting a Q4 review of all evictions to refine policies and stay ahead of the legal curve.
Occupancy has ticked down since peaking at 95.7% in July, driven mostly by condos and small multifamily units in less desirable submarkets.
Takeaway: Focus on making your property stand out with great presentation and proper pricing. And if you’re not a client, review your eviction policies now to ensure compliance with the recent changes.
📈 Houston Market Snapshot
New Listings (HAR): 6,188 → 7,415 (+19.8% YoY)
Average Rent: $2,410 → $2,412 (+0.1% YoY)
Average Days on Market (DOM): HAR – 35 days | Emerson – 18 days (48.6% faster)
The trend is clear: more inventory, flat rents, and increased competition. With nearly 20% more listings than last year, tenants have more options and are becoming more selective.
At Emerson, our leasing speed is cutting through the noise with 18 days on market vs. 35 for Houston overall.
Investor insights:
More supply means tenants can afford to be picky. This is why we’re strict on Rent Ready Requirements!
Flat rents put cash flow under pressure, so reducing vacancy and controlling expenses is essential.
Leasing speed matters. Every extra day vacant costs money.
Remember: Vacancy kills cash flow.
🛠️ Maintenance Update
Median Speed of Repair: 3.7 days (vs. national average of 6–7 days)
Resident Satisfaction: 4.7/5.0
Work Orders Cancelled: 74.8%
We resolve maintenance requests in just 3.7 days, far ahead of the national average. Speed of repair is one of the strongest predictors of lease renewals, which is why we track it weekly.
Resident satisfaction has been consistently high this quarter, with a perfect 5.0/5.0 score nearly half the time!
The biggest surprise? Nearly 75% of work orders were cancelled. But instead of wasted effort, this actually saved owners money: most cancellations were pest control (tenant responsibility) or AC issues resolved in-house at no cost.
Takeaway: A knowledgeable management team that knows the tenant responsibilities, as well as how to troubleshoot, can save you thousands each year.
💬 Owner & Resident Satisfaction
Owner Retention Rate: 97.1%
Lease Renewal Rate: 69% (vs. ~55–65% national average)
Owner retention dipped slightly last month, though nearly 60% of offboards were initiated by us because the properties didn’t meet our standards. We’d rather grow intentionally than manage anything and everything.
Lease renewals fell from above 80% last month to 69% in August. After reviewing each case, every non-renewal was due to lifestyle changes, not performance.
Why it matters: Renewals are one of the strongest tools to protect cash flow. Each renewal saves on turnover costs, leasing fees, and vacancy time.
📸 Value-Add Spotlight
When it’s tough to buy new properties, look for opportunities in your current portfolio.
2023 Rent: $1,775/mo
2024 Rent: $1,895/mo
2025 Rent: $1,945/mo
That’s a 9.6% increase over two years, even as much of the market has seen rent compression. For this investor, it means an extra $170/month (or $2,040/year) in cash flow.
As my mom always said: when life gives you lemons, make lemonade. In today’s market, that means squeezing hidden value out of the properties you already own.
🧠 Owner Insight of the Month
Use caution when deciding whether to sell or when factoring appreciation into your next deal.
Across the South, home prices are seeing modest compression, while the Midwest shows growth. In Houston, one-third of listings have price cuts. That sounds alarming, but remember: the South saw the steepest gains since 2020. Today’s pullback looks more like a healthy rebalancing.
Some analysts believe this correction could last until 2030. Unless you’re forced to sell, holding for the next 2–5 years may be the smarter move.
Even with affordability near record lows, the fundamentals of rental real estate remain strong.
Final Thoughts
The Houston rental market is competitive, evolving, and full of both challenges and opportunities. Whether it’s keeping properties rent-ready, troubleshooting maintenance to save money, or holding through a rebalancing housing cycle, the fundamentals remain the same:
👉 Protect your cash flow, manage vacancies aggressively, and look for hidden value in your current portfolio.
👉 Want insights like this delivered straight to your inbox each month? Sign up for our free Houston Rental Market Newsletter.
Houston Rents Flat, Supply Rising - What This Means for You
The Houston rental market is shifting, and property owners need to understand both the risks and the opportunities. At Emerson Property Management, we track performance data and market trends closely so our clients can stay ahead. Here’s what’s happening in the market right now.
📊 Emerson Portfolio Performance at a Glance
Rent Collection Rate: 94.0% (vs. 95% national average)
Eviction Rate: 0.8% (vs. ~9% Houston average)
Occupancy Rate: 91.1% (slightly above Houston average)
Our rent collection continues to improve as we remove non-paying residents. While evictions are taking longer due to residents filing extensions or appeals, our overall eviction rate remains well below the market. Each case is reviewed as a risk-management exercise to ensure our screening standards remain effective.
Takeaway: Tenants are becoming more savvy at delaying evictions, which can increase lost income and risk. The best protection is strong upfront screening and being prepared for longer timelines if eviction becomes necessary.
📈 Houston Market Snapshot
New Listings (HAR): 5,764 → 7,869 (+36.5% YoY)
Average Rent: $2,430 → $2,424 (-0.2% YoY)
Average Days on Market: HAR – 34 days | Emerson – 31 days (8.8% faster)
Supply is climbing and rent growth is flat, but demand remains resilient. Houston continues to attract new residents and was recently ranked among the top U.S. cities where people want to live. Higher interest rates and affordability challenges are keeping many would-be buyers in the rental pool.
Builders are sustaining sales through aggressive financing incentives, but resale values are softening as price cuts hit their highest levels since the pandemic.
For long-term investors: This means strong rental demand, steady retention, and buying opportunities at better terms than we’ve seen in years.
For sellers and flippers: More competition, deeper concessions, and a higher likelihood of price cuts. If you can, waiting 2–3 years to sell may yield better results.
🛠️ Maintenance & Resident Satisfaction
Median Speed of Repair: 4.1 days (vs. national avg. 6–7 days)
Resident Satisfaction: 4.4/5.0
Lease Renewal Rate: 81.8% (vs. ~55–65% national average)
Fast repairs and proactive decisions are key to protecting properties while keeping residents satisfied. Last month, nearly 30% of work orders were resolved or appropriately declined — without sacrificing satisfaction.
Takeaway: Quick response times and smart repair decisions build resident trust, reduce turnover, and protect your bottom line.
📸 Value-Add Spotlight: Simple ROI Wins
Not every improvement requires a major renovation.
Example: 10918 Barker View Drive
Make-ready cost: $2,740 (HVAC service, rekey, code work, cleaning, touch-ups)
Result: Rent increased by $144/month = $1,728 more per year
ROI: 63% return on investment
Lesson: Small, cost-effective improvements can deliver outsized returns.
🧠 Owner Insight of the Month
Zillow confirms what we’ve long practiced: allowing pets reduces vacancy. Homes that allow pets lease an average of 8 days faster than those that don’t.
Tip: In today’s competitive market, pet-friendly policies are one of the simplest ways to keep properties occupied and cash flow steady.
✅ Final Takeaway for Owners
Rental demand in Houston remains strong, even as rents flatten.
Emerson continues to outperform the market in leasing speed, renewals, and resident satisfaction.
For long-term investors, this environment offers opportunities not seen in the past five years.
👉 Want insights like this delivered straight to your inbox each month? Sign up for our free Houston Rental Market Newsletter.
More Listings, More Competition — Are You Ready?
Stay ahead of the market with our June portfolio performance recap, covering key stats, market trends, resident satisfaction insights, and a spotlight on real returns from a strategic upgrade.
📊 Portfolio Performance at a Glance
Rent Collection: 92.9% (vs. 95% national average)
Eviction Rate: 0.39% (vs. ~9% Houston average)
Occupancy: 95.7% (vs. 90.8% Houston average)
We’re outperforming the market in occupancy and eviction prevention. Rent collection dipped slightly due to a few delayed payments that were resolved after eviction filings — a reminder to always follow through on your lease enforcement process.
📈 Houston Market Snapshot
New Listings: 7,117 (+12.7% YoY)
Average Rent: $2,400 (+0.97% YoY)
Average DOM: HAR – 35 days | Emerson – 22 days (37% faster)
The Houston market is shifting. Supply is climbing, and while rent and DOM have remained stable so far, we expect more pressure in the coming months. Tenants are increasingly selective, making property condition a critical differentiator.
Tip: Now’s the time to address deferred maintenance or minor updates. Clean, well-maintained properties are winning in today’s leasing environment.
🛠️ Maintenance Update
Median Speed of Repair: 2.2 days
Resident Satisfaction: 4.8 out of 5
Fast, professional maintenance is one of the most underrated drivers of tenant retention and long-term ROI. Our median repair time last month was just 2.2 days — faster than many in-house teams — with nearly perfect resident satisfaction.
💬 Owner & Resident Satisfaction
Owner Retention: 96.8%
Lease Renewal Rate: 57%
Some owners chose to exit underperforming assets — a strategic move given that 32.9% of listings in Houston had price drops, the highest in 5 years. On the resident side, most move-outs were tied to life events or property sales, not dissatisfaction. July renewals are already rebounding.
Tip: Always ask why a resident is moving. It helps you identify (or rule out) problems worth fixing.
📸 Value-Add Spotlight: 27.6% ROI From One Turnover
At 12322 Wild Pine Dr, we invested ~$16,254 in strategic upgrades (paint, LVP, fixtures, curb appeal). The result?
Rent increased from $975 → $1,349/month
Annual income increased by $4,488
ROI: 27.6%
Before buying your next property, look within your current portfolio — value may already be sitting there.
🧠 Owner Insight of the Month: Pest Prevention
Houston heat = pest activity. Roaches, ants, and rodents love vacant units, and even a short vacancy can lead to a major infestation.
Tip: Treat proactively and schedule a quick walkthrough after any extended vacancy. It could save you thousands in damage and lost rent.
And no — those aren’t chocolate sprinkles on the floor…
Need a pest control referral? We've got you covered.
👋 Want Insights Like This Sent Monthly?
If you’re not already working with us, you can still get these performance reports, market updates, and investment tips — for free.
👉 Join Our Monthly Newsletter and stay ahead of the Houston rental market.
To your success,
Cam
Founder, Emerson Property Management
Houston’s Expert in High-Performance Rentals
How Emerson Clients Are Beating the Houston Rental Market in 2025
At Emerson Property Management, we believe that performance speaks louder than promises. While many landlords are struggling to navigate a shifting rental landscape, our clients are consistently outperforming the market — in rent collection, occupancy, and return on investment.
Here’s a quick look at how our portfolio stacked up in May 2025 — plus a few insights you can apply to your own rentals.
📊 Portfolio Performance at a Glance
Rent Collection Rate: 96.2% (vs. 95% national average)
Eviction Rate: 0.77% (vs. ~9% Houston average)
Occupancy Rate: 93.5% (vs. 90.8% Houston average)
Strong collection rates and minimal evictions aren’t luck — they’re the result of proactive tenant screening, disciplined lease enforcement, and clear communication. Our team’s systems are built to keep cash flow consistent and your risk minimized.
📈 Houston Market Snapshot: Resilient, but Competitive
Despite a 17.1% year-over-year increase in new rental listings, Houston’s rental prices have held steady:
New Listings (HAR): 5,699 → 6,672
Average Rent: $2,348 → $2,349 (0% YoY growth)
Average Days on Market: HAR – 39 days | Emerson – 21 days (46.1% faster)
Even with rising inventory, tenants are renting quickly — but they’re getting more selective. We’re seeing slower movement in multifamily units, properties with deferred maintenance, and less desirable locations. If you’re considering your next investment, ask yourself: Would a quality tenant want to live here?
💡 Investment Spotlight: 35.2% ROI on One Turnover
One of our recent projects at 20614 Park Row Dr shows how targeted improvements can unlock serious value:
Upgrades: Full repaint, new carpets, fixtures, deep cleaning (~$11,000)
Result: Rented in 10 days at $323/month more than prior lease
Annual Income Boost: $3,876
Return on Turnover Investment: 35.2%
You don’t always need to buy another property to grow your returns.
Sometimes, the opportunity is already sitting in your portfolio — it just needs the right improvements.
🛠 Maintenance Update: Fast Repairs, Happy Tenants
Median Speed of Repair: 3.7 days
Resident Satisfaction: 4.7 out of 5
Quick maintenance isn’t just about avoiding complaints — it directly impacts tenant retention and asset preservation. National data shows maintenance issues are the #1 reason tenants leave, and in today’s supply-rich market, renters have more choices than ever.
🧠 Owner Insight: Don’t Skip HVAC Maintenance
HVAC breakdowns spike every July — and cost landlords $1,500–$2,500 on average. But a $75–$150 preventative tune-up can catch issues like low refrigerant or worn parts before they become emergencies.
At Emerson, we schedule HVAC maintenance proactively before renewals, so our owners avoid the stress (and cost) of peak-season failures. If your system is over 10 years old or acting up, now’s the time to act.
👋 Want Insights Like This Sent Monthly?
If you’re not already working with us, you can still get these performance reports, market updates, and investment tips — for free.
👉 Join Our Monthly Newsletter and stay ahead of the Houston rental market.
To you success,
Cam
Founder, Emerson Property Management
Houston’s Expert in High-Performance Rentals
April 2025 Houston Rental Market Update: Performance, Trends & Owner Insights
Welcome to your monthly owner update, where we break down Houston rental market trends, Emerson’s portfolio performance, and key ownership insights to help you maximize returns. Whether you're self-managing or fully hands-off, the data this month speaks volumes.
📊 Portfolio Performance at a Glance – April 2025
April came with a few surprises. Here’s how our managed portfolio stacked up:
Rent Collection Rate: 91.1% (vs National Average of 95%)
Eviction Rate: 0.87% (vs Houston Average of ~9%)
Occupancy Rate: 93.8% (vs Houston Average of 90.8%)
Insight: The dip in rent collection? It stemmed from several evictions — all tied to tenants not placed by Emerson.
In fact, 93.5% of all evictions we handled last year were for tenants placed by the owner or an outside agent. That stat alone should raise eyebrows.
Takeaway: Tenant screening isn’t a formality — it’s an investment safeguard. If you're handling placements yourself or relying on third-party agents, make sure their screening process is air-tight. A bad tenant doesn’t just cost you rent — they cost you peace of mind.
📈 Houston Market Snapshot – April 2025
The broader Houston market remains steady, with signs of modest cooling as new listings rise. Here’s the latest:
Average Rent (HAR): $2,288 → $2,330 (+1.8% YoY)
Average Days on Market: HAR - 41 days | Emerson - 8 days
(That’s 80.5% faster.)
Slower rent growth and increased time on market are signs of a shifting climate — but our team is still leasing at high velocity.
Why Our Properties Lease Faster:
Professional photography + detailed floor plans for every listing
Real-time pricing adjustments based on hyperlocal data
A dedicated Leasing Specialist focused solely on converting leads
Spring and early summer are peak leasing seasons, and we're making sure your property doesn’t miss a beat.
🛠️ Maintenance Performance – April 2025
Average Work Order Cost: $317.44
Median Speed of Repair: 4.5 days
Issues Resolved Without Sending a Vendor: 54 (Est. $17,141 saved for owners)
While a few HVAC replacements bumped up our average costs, we’re continuing to hit our repair targets and minimize expenses by:
Avoiding unnecessary cosmetic work
Holding tenants accountable
Solving problems before dispatching vendors
Bottom line: Less spend. Faster results. More ROI.
💬 Owner & Resident Satisfaction – April 2025
Owner Retention Rate: 99.4%
Resident Satisfaction: 4.7/5.0
Lease Renewal Rate: 75%
Performance continues to exceed industry standards across the board.
Renewals dipped slightly last month, but not due to dissatisfaction — just typical life transitions like job relocations and upsizing.
Reminder: Happy residents renew. Fewer turnovers = more consistency = higher returns.
🧠 Owner Insight of the Month: Hurricane Prep
Hurricane season starts June 1st — here’s your quick prep checklist:
Review insurance coverage
Trim overhanging tree limbs
Clear gutters and inspect drainage
Secure outdoor items and check sump pumps
As a client, know that our team assesses storm risk during every turnover. But proactive prep today can prevent major headaches tomorrow.
📣 Let’s Hear From You
Which part of this update did you find most valuable? Want more charts? Less data? A corny landlord joke at the end?
Let’s connect on LinkedIn — I’d love your feedback and ideas for future updates.
To your success,
Cam
Broker/Owner, Emerson Property Management