2026 Rental Owner Report: Market Trends, Challenges, and Growth Plans

In early 2026, we surveyed thousands of rental owners and managers and collected 2,870 survey question responses to better understand how they view the market, what challenges they are facing, and what they plan to do next. The results point to a rental landscape shaped by cautious optimism, rising tenant expectations, and a steady focus on long-term stability.

While headlines often focus on market swings and economic uncertainty, the owners in this report tell a more grounded story. Most are not making dramatic moves. Instead, they are staying measured, relying on data, and looking for ways to protect cash flow while keeping good tenants in place. That mindset shows up across nearly every survey response.

For landlords and property managers, this report offers a practical look at what is happening now and what matters most in the year ahead.

Who We Surveyed

The survey audience ranged from first-time landlords with a single unit to experienced operators managing large portfolios. More than half of respondents, 53%, own or manage 1 to 2 units, while 33% manage 3 to 10 units. A smaller share represented mid-sized and larger portfolios, with 10% managing 20 to 50 units and 4% managing 50+ units.

Experience levels were also mixed. About 20% of respondents have owned or managed rentals for less than a year, while 26% have been in the business for 1 to 3 years and 28% for 4 to 7 years. More seasoned owners were also well represented, with 15% reporting 8 to 15 years of experience and 11% reporting 15+ years. Taken together, that means nearly half of respondents have been in the rental business for three years or less.

That mix matters. It suggests the 2026 rental market includes both newer investors learning to operate in a more demanding environment and experienced owners adapting to shifting costs, tenant expectations, and market conditions.

Rental Owners Are Cautiously Optimistic About the Market

One of the clearest findings from the survey is that rental owners are not overwhelmingly negative about the market. In fact, more than 80% of respondents described themselves as neutral to optimistic about today’s rental market. Specifically, 39.12% said they feel very optimistic, 21.47% said somewhat optimistic, and 28.53% said neutral. Only a small group reported concern, with 9.71% saying somewhat concerned and 1.18% saying very concerned.

That does not mean owners think conditions are easy. It means they are realistic.

This is a useful signal for anyone watching rental housing trends in 2026. Owners still see opportunity in rental real estate, but they are approaching it with discipline. The mood is not aggressive. It is steady. Rather than reacting emotionally, many are staying focused on preserving returns, improving operations, and planning for the long term.

Rising Expenses Are the Biggest Concern for the Next 12 to 24 Months

When asked what concerns them most over the next one to two years, 55% of respondents pointed to rising expenses. That far outpaced every other issue in the survey. Tenant affordability came in next at 20%, followed by vacancy rates at 14%, interest rates and refinancing at 6%, and regulatory changes at 5%.

This is one of the most important takeaways in the report.

For rental owners, pressure is coming less from demand and more from the cost of operating a property. Insurance premiums, maintenance labor, materials, turnover expenses, and everyday operating costs continue to put pressure on margins. The concern is not just whether units will rent. It is whether the numbers still work after expenses keep climbing.

This helps explain why so many owners are taking a measured approach in 2026. When expenses rise, owners are more likely to prioritize retention, budgeting, and operational efficiency instead of making fast expansion decisions.

Tenant Expectations Have Increased

Another major theme in the report is the shift in tenant expectations.

According to the survey, 63% of rental owners and managers said tenant expectations are higher than they were five years ago. More specifically, 39% said expectations are much higher and 24% said slightly higher. Meanwhile, 33% said expectations are about the same, and only a very small share said expectations are lower.

This aligns with what many owners are already experiencing on the ground. Today’s renters expect cleaner move-ins, faster communication, better maintenance follow-through, and more convenient digital experiences. That can include everything from online rent payments to clear communication and faster repair coordination.

For owners, this shift has real business impact. Higher expectations are not just about service quality. They directly affect tenant retention, reviews, renewal rates, and turnover costs. In a market where keeping a good tenant may be more valuable than constantly replacing one, meeting expectations becomes a business decision, not just a customer service issue.

Tenant Turnover Is the Top Challenge in 2026

If rising costs are the biggest future concern, tenant turnover is the biggest current operational challenge.

When owners were asked about their biggest challenge right now, 42% said tenant turnover. That made it the top issue by a wide margin. Maintenance costs came in second at 29%, followed by pricing rentals at 13%, legal and regulatory compliance at 8%, and time required to manage at 7%.

This is a key insight for rental owners in 2026.

Turnover is expensive. Every move-out can create lost rent, cleaning costs, maintenance work, listing expenses, screening time, and leasing delays. For smaller landlords, even one vacancy can have a big effect on monthly cash flow. For larger portfolios, repeated churn adds up fast. The survey suggests that owners understand this and see retention as one of the highest-leverage ways to improve performance.

In practical terms, that means tenant satisfaction matters more than ever. Better maintenance coordination, stronger communication, and a smoother rental experience are not just nice to have. They can help reduce the very challenge owners say hurts them most.

Market Data Is Driving Rent Increase Decisions

When it comes to pricing strategy, the message from owners is clear: market data matters most.

Nearly 74% of survey respondents said they use market data to decide on rent increases. That far exceeded every other approach. Only 10% said they base increases on operating cost changes, 7% use a fixed annual increase, 6% avoid increases when possible, and 4% said property improvements drive their pricing decisions.

This shows that most owners are not treating rent increases as automatic. They are watching local conditions and trying to price competitively.

That is an important trend in the 2026 rental market. In a higher-cost environment, it may be tempting to raise rent simply because expenses have gone up. But the survey suggests owners know that rent decisions need to reflect what the market can support. Local comps, vacancy trends, and tenant demand remain central to rent-setting decisions.

For landlords and property managers, this reinforces the value of using real-time rental data instead of relying on guesswork. Pricing too high can lead to vacancy. Pricing too low can leave money on the table. Owners appear to be balancing both risks by staying close to the market.

Most Owners Are Focused on Long-Term Consistency

One of the strongest signals in the report is the mindset owners bring into 2026.

When asked which statement best reflects their current mindset, 65% said they are focused on long-term consistency. By comparison, 15% said they are cautiously expanding, 9% said they are holding and waiting, 8% said they are actively acquiring, and only a small share said they are reducing exposure.

That answer says a lot.

Owners are not chasing fast wins. They are not panic selling either. Instead, most are staying committed to rental real estate while taking a patient, steady approach. That often means tightening operations, making thoughtful pricing decisions, keeping good tenants longer, and staying disciplined about returns.

This long-term mindset also helps explain the broader tone of the report. Even with rising costs and more demanding tenants, most owners still believe in the value of holding rental property over time.

Many Rental Owners Still Plan to Grow in 2026

Even with all the pressure owners are facing, growth has not disappeared from the picture.

According to the report, 58% of owners plan to buy more rentals or complete a 1031 exchange in 2026, while only 4% plan to sell. That gap is striking and points to continued confidence in rental real estate as a long-term wealth-building strategy.

This does not mean owners are ignoring market challenges. It means many still see opportunity ahead.

That growth may be selective. It may not come with aggressive leverage or rapid scaling. But the report shows that many owners remain committed to building their portfolios over time. For an industry often shaped by fear-based headlines, that is a notable finding. The dominant behavior is not retreat. It is patience with a plan.

What This Means for Rental Owners and Property Managers

The findings in this report point to a few practical realities for 2026.

First, retention should be a major focus. Tenant turnover is the top operational challenge, and rising tenant expectations make that even more important. Owners who create a better tenant experience may be better positioned to reduce vacancy and protect cash flow.

Second, owners need strong market visibility. Since most respondents rely on market data to guide rent increases, having access to local comps and rental trends is becoming essential. Pricing strategy is no longer something owners can afford to guess on.

Third, controlling expenses matters more than ever. With rising costs standing out as the top concern for the next 12 to 24 months, owners need systems and processes that help protect margins. Budgeting, preventive maintenance, and dependable vendor relationships all become more valuable in this environment.

And finally, the long game is still winning. Most owners are not stepping away from rental real estate. They are staying invested, staying selective, and staying focused on stability. That mindset may be one of the clearest indicators of how the market is evolving in 2026.

Final Thoughts

The 2026 rental market is more demanding than it was five years ago. Costs are rising. Tenants expect more. Turnover remains expensive. But owners are not responding by freezing up or walking away.

Instead, this survey shows a group of rental owners and managers who are staying practical and focused. They are using market data to guide pricing. They are paying attention to tenant experience. They are concerned about costs, but many are still planning to grow. Most of all, they are thinking long term.

For landlords and property managers, that may be the biggest lesson from the report: 2026 is not about making the loudest move. It is about making the smartest one.

FAQ

What is the 2026 Rental Owner Report?

The 2026 Rental Owner Report is a survey-based report that shares insights from rental owners and managers on market trends, top challenges, rent pricing, and growth plans.

What are rental owners most concerned about in 2026?

Rising expenses are the biggest concern for most rental owners, followed by tenant affordability and vacancy rates.

What is the biggest challenge rental owners face right now?

Tenant turnover is the top challenge, with many owners also pointing to maintenance costs and pricing rentals as ongoing concerns.

How are rental owners deciding on rent increases?

Most rental owners use market data to guide rent increases rather than relying on fixed annual increases or cost changes alone.

Are rental owners planning to buy more rentals in 2026?

Yes. Many survey respondents said they plan to buy more rentals in 2026, while others are focused on maintaining long-term consistency in their current portfolio.

How have tenant expectations changed?

Most respondents said tenant expectations are higher than they were five years ago, especially around communication, maintenance, and the overall rental experience.

What does this report say about the rental market in 2026?

The report shows a rental market shaped by cautious optimism, higher tenant expectations, and a strong focus on long-term stability.

About Hemlane

Hemlane is a property management software and services platform built for rental property owners and managers. From rental advertising and tenant placement to rent collection, lease management, and repair coordination, Hemlane helps owners stay organized and save time while delivering a better rental experience.

About the Author

Alex Smith is a Product Manager at Hemlane, where he focuses on building solutions that help rental property owners and managers operate more effectively. He works closely with teams across the business to improve the landlord and tenant experience and bring practical tools to the rental market.