Heading into the second half of the year, independent rental owners are adjusting their strategies about where they put their money compared to six months ago, opting for fewer purchases, smaller renovations, and less rent hikes.
In RentRedi’s Q3 2026 “State of Rental Investing in America” survey it shows investors are still growing their portfolios, but they’re being far more selective about where they put their money.
Key findings in the rental owners’ report
- Renovation spending is shifting toward smaller projects. Only 12% of rental owners now plan to spend $20,000 or more per unit on improvements in the next year, down from 35% a year ago. Meanwhile, 36% plan to spend between $1,500 and $4,999 per unit.
- Purchase intent has cooled from earlier this year, but growth continues. 59% of rental owners expect to buy at least one property in the next 12 months, down from 68% in January, but still above the 53% reported a year ago.
- Rent increases remain modest. 45% plan a 1% to 3% increase, nearly flat compared to January’s 47%, while 30% don’t plan to raise rent at all.
- Small operational changes are driving measurable cash flow gains. Data shows autopay adoption pushes on-time rent payments to 99%, tenant screening improves on-time payment rates to 90%, and automated rent reminders make renters 27% more likely to pay on time.
- Insurance costs remain a top pressure point, especially in the Southeast. Additionally, materials and labor expenses and property taxes are leading financial pressures reported by rental owners.
- Rental demand stays strong. 72% of rental owners describe current demand as somewhat or very strong, and 75% plan no property sales in the next year.
Overall, landlords are growing more selective in their spending and smarter in their operational habits in order to maximize their cash flow. Big-ticket renovation spending has fallen sharply since a year ago. Rent increases are holding at the same modest pace rental owners set at the start of the year, even as insurance and property tax costs continue to climb.
