Low interest rates and an influx of new apartment buildings have Lawrence landlords frustrated and scrambling to attract tenants.

Nearly 8 percent of the city’s apartments in 2003 were unoccupied, according to a survey conducted by Lawrence-based Keller & Associates, a real estate appraisal firm. That’s up from 6 percent in 2001, the last time the study was conducted. The 2003 number was slightly lower than the 10 percent mark posted in 1997, which was one year after the city’s largest apartment building boom. There were 842 units built in 1996.

Lauren Rhodes, manager of Campus Place Apartments, 1145 La., describes the Lawrence market in one word: oversaturated.

Rhodes attributes the waterlogged market to affordable campus living and open dorms.

“Right now we’re bringing people in just because of the location,” Rhodes said.

Karin Deursch, manager of Cedarwood Apartments, 2411 Cedarwood Ave., said if any more apartments were built the older ones would go under.

“With all the new building, people who have been here 20 to 25 years don’t even have a chance,” Deursch said.

In the past, Deursch has offered up to three months free rent. This still has done little to entice prospective renters.

“Just no people calling,” Deursch said.

Sarah Dahl, assistant manager of Resource Management, said since August the company had an unusual amount of empty apartments. Resource Management offered $200 bonus for prospective tenants.

George Waters Management oversees more than a dozen properties and apartment complexes in Lawrence. George Waters, owner, anticipates this coming year to be very competitive.

“It’s more difficult to rent apartments right now than as little as four years ago,” Waters said. “It seems like it takes longer and longer for people to make a decision and put their name on a line.”

Waters said landlords must be willing to adapt. Waters’ company has budgeted for more money to be spent on advertising this year. Its apartments also are in more apartment guides this year.

“I’m pretty pleased how we did last year and how we’re going to do, but I’m also preparing for another war,” Waters said.

Apartments in Lawrence are offering move-in specials and other deals to attract tenants. This sign was at Highpointe Apartments, Sixth and Iowa streets.

He pointed out that low interest rates might also be the cause for empty apartments. He also said renters might be taking more drastic measures.

“With the economy and the job situation people are nervous. They might be pairing up a little more than they would like to,” Waters said.

Despite the market situation, Apple Lane Studios is almost fully occupied, said Janice Cunningham, business manager.

“I think we’ve overbuilt, but I’m fortunate that we’re 98 percent occupied,” Cunningham said. “There are signs everywhere and they are still building.”

Dahl was optimistic about the market and said things would get better.

“This isn’t permanent,” she said. “For whatever reason, maybe the economy, the population hasn’t caught up with all the apartments being built.”