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If they raised the rent successfully on 2/3rds of the units to just over 3/2’s of its old value, then it seems like they could afford to keep 1/3 of units vacant and available for new tenants who are willing to pay that higher rent. (They’re no worse off on a cashflow basis and they have vacant inventory that represents possible upside.)

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This strategy only works because vacancy rates are low and interest rates are low.

I don’t think the second condition is even needed. As long as you can raise the rent by over 50%, you can keep 1/3 of units vacant and be better off than last year; that’s probably only possibly if overall vacancies are low.

companies that profit well in high inflation environments are studied in some business schools. Part of the equation you describe is the (assumed) constant demand, and the ability to adjust frequently compared to life of the asset.

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