The Property Pulse by LandlordDoc | July 4th, 2025
Your weekly pulse of what's happening in the rental industry right now Issue #3 | July 4, 2025 | 3-minute read
This Week's Headlines
- New California deposit caps take effect: AB 2493 and AB 2801 limit security deposits to one month's rent and require fee refunds
- National vacancy hits record 7%: Apartment List data shows highest multifamily vacancy since tracking began, while rents edge up only 0.2%
- AI leasing tools show 73% boost: AppFolio's Realm-X Performers uses AI Agents to automate responses and save 10 hours per staffer weekly
Quick Wins: Virtual Tours That Pay
What: Create interactive virtual tours for your vacant units using budget-friendly 360-degree capture services.
Why: According to Growth Realty analysis, listings with virtual tours generate 87% more views, reduce no-shows by 40%, and lease 31% faster at 9% higher rents.
How:
- Hire local Matterport or Asteroom provider ($100-$360 for units under 1,500 sf)
- Embed tour links on Zillow, Rent.com, and social media listings
- Require applicants to confirm they watched tour before in-person showing
Cost: $150 average
Time: 2 hours setup, break-even at one week faster occupancy on $1,200 unit
By the Numbers
| Metric | This Week | Last Period | Why It Matters |
|---|---|---|---|
| National median rent | $1,401 | +0.2% month-over-month | Still down 0.7% year-over-year—renewal pricing power remains weak |
| List-to-lease time | 27 days | Down from 37 days in January | Marketing cycles improving but still 1 day slower than last year |
| Multifamily permits | 444k annualized | +1.4% month-over-month | Future supply pipeline active—prepare for continued tenant leverage |
📊 MARKET HEALTH SNAPSHOT - JULY 2025
Market Pulse
New Supply Alert: May construction data shows 1.526M completions (+5.4% month-over-month) flooding markets while starts dropped 9.8%—short-term pressure ahead.
Austin Cooling Fast: Two-bedroom rents down 17% from 2022 peak to $1,426, with vacancies at 9.85%—consider $300 move-in credits over blanket rent cuts.
Permit Pipeline Shrinking: 2-4 unit permits fell 7.3% year-over-year to 51k—small-plex inventory getting tighter for future acquisitions.
🚨 AUSTIN RENTAL MARKET ALERT
Legal & Regulatory
California: AB 2493 and AB 2801 now require "first-come, first-qualified" screening, cap security deposits at one month's rent, and mandate photo documentation.
Impact: Screening fee refunds for non-selected applicants could increase administrative costs and reduce revenue from application volume.
Action Required: Update lease templates immediately—non-compliance carries statutory penalties plus actual damages.
Tool Spotlight
Featured: AppFolio AI Performers (~$1/unit/month add-on)
Best For: Portfolios under 50 units spending 4+ hours weekly on leasing follow-up, maintenance coordination, and tour scheduling
Pricing: Approximately $1 per unit per month as add-on to existing AppFolio subscription
Bottom Line: ROI breaks even within two signed leases—worth testing if you're already on AppFolio platform.
Research Roundup
Study: "2025 Outlook" by RealPage Analytics
Key Finding: After record 667k apartment units absorbed in 2024, demand projected to fall 25% in 2025 while rent growth re-accelerates as new supply fades.
Takeaway: Plan for softer leasing through Q3 2025, then position for firmer pricing in Q4 as supply-demand balance shifts.
Looking Ahead
- Maryland's Tenants' Bill of Rights requirement starts July 1—update lease attachments now
- Zillow CPI forecast predicts owner-equivalent rent growth slowing to 3.3% by December—budget renewals accordingly
- Austin's SB 2508 squatter removal provisions begin September 1
Save This
- Current average days to lease: 27 days (down from 37 in January)
- Recommended move-in credit: $300 (more effective than rent cuts in soft markets)
- Virtual tour break-even: One week faster occupancy on $1,200+ units
The Property Pulse is compiled from verified industry sources and data. Individual results may vary. Consult local attorneys for specific legal compliance requirements.
