If you are one of the many landlords seeking tenants to fill rental vacancies today, you have my sympathy. Several things have occurred in recent years to make it a renter’s market. As a result, renting is a bargain in the metro Atlanta area today.

So where did all the renters go?

* Many of them bought homes of their own. Interest rates have been low recently, and modestly priced homes are more affordable than they have been in many years. This permanently removes your former tenant from the rental market.

* During slow economic times, some renters will double-up, and others will move in with parents or relatives. This is often a more temporary, but very real, reduction in the rental population.

* In addition, lenders have been pushed by Congress to offer special loan programs to "first-time" buyers and those who might not otherwise qualify.

* Many tenants of intown apartment communities have seen their buildings converted to condominiums, and have chosen to purchase their unit instead of losing it to a new owner.

* The dramatic job growth of the last decade has cooled for metro Atlanta, and fewer people are moving here needing a place to live.

To make matters worse, the low interest rates have encouraged developers to build new apartment communities now while they are affordable, and to worry about occupancy at a later date.

A decrease in demand coupled with an increase in supply can eventually mean only one thing: vacancy.

This is why apartment complexes on Buford Highway and other locations are offering cash incentives for referrals and several months free rent to new tenants at the property.

In addition, owners of single family homes are now going to the extreme measure of "stealing" tenants from nearby apartment complexes. This technique capitalizes on the theory that most apartment residents would rather live in a traditional detached house than in a multi-unit building.

All this bad news for landlords might lead you to think that investors are leaving the rental market in favor of greener pastures. But the opposite appears to be the case.

Investors, both big and small, seem to be betting on an economic recovery that has seemed just around the corner for several years. When the long awaited increase in economic activity takes place, investors expect interest rates will rise and rents will follow. At least, that’s the idea. And in the meantime, doing whatever is needed to hang on is the order of the day.

While discouraging a renter from buying is unlikely, it is always smart to try to keep current tenants happy. Tenant retention is the easiest way to keep your property full.

Here are some ideas for keeping your existing residents as happy as possible:

* Give each resident a free "Day with the Handy Man." The idea here is that your repairman can fix some of the minor daily irritations like leaky faucets and squeaky door hinges at relatively minor cost to you.

This idea assumes you have access to a competent handyman, which is easier said than done. Perhaps an easier variation is to:

* Give each resident a $25 gift card for the local hardware store or home improvement center. Everybody can find something they want to buy, and the gesture might go a long way toward keeping someone from moving.

* Offer residents a cash payment for referring new tenants if you are in a multi-unit property. My experience has shown that most folks prefer cash in their pocket to a reduction in rent, which seems to disappear.

* Another idea that works is to find a local restaurant that is willing to offer you a discount on the cost of gift certificates in exchange for the opportunity to meet new customers from your rental.

* Recognizing that your tenants may hope to become homeowners in the future, you might offer a "rent rebate" at the conclusion of a new two year lease. The rebate can be used for any purpose, but might be billed as a "down payment builder" helping the tenant qualify for a new home. This form of lease equity pays your tenants to stay with you until occupancy and rental rates improve.

Finally, know that you must be competitive with your rental rate in an environment such as this. In fact, you have no choice.

One of my targets has always been to get rent of approximately one percent of the market value of any property on a monthly basis. Under this formula, a modest three bedroom one bath home might sell for $100,000 or rent for about $995.

But in our current economic environment, you may not be able to command that much rent, especially if a major developer has recently opened a 300 unit upscale apartment complex around the corner.

And don’t try to fool yourself into believing that just because your monthly payments are at a certain level, you must get enough rent to cover that cost.

The bottom line is that the market determines what a renter will or will not pay to live in your property every month, and you have to find a way to live with it.