A low occupancy rate may suggest what about a property?

A low occupancy rate generally indicates challenges in attracting tenants to a property. This situation can arise due to various factors such as unfavorable conditions in the rental market, issues related to the property's location, the rental price being too high relative to market rates, or possibly a lack of amenities or poor management. When potential renters see a high number of vacant units, it may lead them to question why those spaces are available—this can contribute to a perception of the property as less desirable or problematic.

In contrast, high demand for rental units would typically correlate with a higher occupancy rate, while a stable and secure environment would also suggest a healthy demand for housing. Low maintenance costs don't inherently affect the occupancy rate; they can benefit landlords, but they do not directly influence tenants' interest in renting a unit. Thus, the indication of challenges in attracting tenants is the most relevant interpretation of a low occupancy rate.