Real Estate Investing with Coach Carson · Chad Coach Carson

#442: Why My Rents Dropped 30% (and What I'm Doing About It)

·15 min·1 clip

Chad Carson reveals his four rental properties are completely vacant, forcing him to slash rents by 30%.

Chad "Coach" Carson shares a transparent, behind-the-scenes look at a current challenge in his rental property business. This Coach's Corner episode details his experience with four vacant units in his Clemson, South Carolina market. Carson explains his immediate response and long-term strategic thinking regarding this unexpected vacancy spike. He currently has four unrented properties: a single-family house, one unit in a fourplex, and two units in a triplex. These units have been on the market since March without securing tenants, missing the typical pre-leasing season in his college town. Carson's original house, bought with $5,000 down and seller financing, saw its rent drop from $1,900 to $1,795. A two-bedroom apartment previously rented for $720 is now listed at $800, and two triplex units near downtown Clemson have been aggressively reduced from over $1,400 to $1,000 and $1,100. Carson attributes the problem to a significant supply-demand imbalance specific to Clemson. He estimates roughly 3,000 new student apartment units have been built since 2020, while university enrollment has only grown by about 2,500 students in that time. He describes Clemson's economy as a "little pond" where this influx of supply creates major market waves. An additional factor is homeowners with low mortgage rates choosing to rent their properties instead of selling, adding more inventory. A surprising insight is his observation that property managers and investors, including himself, may have grown "lazy with marketing" during recent years of high demand. His immediate strategy is to "find the market" by dropping rents weekly until showings increase. For the mid-term, he plans to enhance property value through cosmetic updates and improve marketing tactics, potentially using paid advertising. Carson stresses that this situation, while challenging, is manageable due to the cash flow from his other dozens of units and his maintained cash reserves. He frames this as a stress test for his portfolio and a reminder of real estate's cyclical nature. He contrasts this with his experience during the 2009 recession, noting his stronger financial position now buffers him from calamity. The episode maintains an informal, educational, and reflective tone, blending personal narrative with analytical market breakdowns. Carson uses visual aids like market maps and whiteboard explanations to illustrate his points clearly. Listeners interested in the practical, unvarnished realities of running a rental business will find significant value in this case study. Investors in stable, non-college town markets or those seeking only success stories might find less immediate relevance.

As heard by us

A candid look at how oversupply, vacancy, and rent cuts collide in a small Clemson market.

Four vacant rentals frame a blunt look at vacancy, rent cuts, and the pressure local oversupply can put on a landlord. Coach Carson says he is sharply lowering rents on those properties and uses the situation to examine why the market has tightened.

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Why you'd press play

When vacancies force a rent reset, you want the numbers, not the spin.

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