Avail's 2026 survey reveals that 18% of landlords are deliberately holding rents flat rather than increasing them. This strategy reflects a long-term wealth-building approach over short-term cash flow optimization.
Landlords who freeze rents cite several reasons for the decision. Tenant retention ranks highest among their priorities. Keeping reliable, long-term tenants avoids costly turnover expenses like vacancy periods, marketing, screening, and unit refreshes. A stable tenant also means predictable income and fewer maintenance emergencies tied to neglect or rapid occupancy changes.
Tax benefits play a secondary role. Some landlords structure their portfolios to show modest income growth, minimizing tax liability while building equity through principal paydown on mortgages. This works especially well in appreciating markets where property value gains compound over time.
For tenants, rent freezes deliver obvious relief. In tight rental markets, stability becomes precious. A tenant locking in today's rate avoids the 5-10% annual increases common in hot markets. Those renting in expensive metros like New York, San Francisco, or Miami see the clearest advantage.
For buyers considering investment properties, the frozen-rent trend suggests a market shift. Properties with below-market rents generate lower immediate returns but attract quality tenants and reduce vacancy risk. The math improves if local appreciation runs 4-6% annually.
However, not all landlords should hold rents. Markets matter enormously. In appreciating urban cores where demand exceeds supply, freezing rents leaves money on the table. In softening secondary markets, rent freezes make sense to prevent turnover.
Your decision depends on three factors: your local market's appreciation potential, your tenant's reliability, and your cash flow needs. If your property appreciates 5% yearly and your tenant pays reliably, freezing rents for two to three years builds good