I’m not an expert in real estate but this doesn’t make a lot of sense to me. Sometimes tenants might do so much damage that it would be better to not have rented the unit at all, but this hardly seems likely for most tenants?

Also, it seems like an apartment building that’s mostly rented out would sell for more than one that’s mostly vacant and losing money? Assuming it’s not a teardown.

It seems like it’s similar to any other business. A profitable business would go for more than an unprofitable one.

I can see it as a reason to be picky about tenants, though.