RentalProperties.com News: Rental Rates Fall Tenants may be able to bargain for a better rental property lease rate.
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Apartment Occupancy Rates Rise and Rental Rates Fall Updated April 9 2009
REIS is a real estate information service which reports quarterlyon trends in rental property markets across the country.
This quarter, REIS reported that apartment vacancy rates had risen to their highest levels in three years. Apartment rental rates had dropped to their lowest in ten years.
The apartment vacancy rates mirror the problems in the overall economy, with job loss and uncertainty leading some families to consolidate housing, ie post college age young adults moving back home rather than starting out in their own apartment.
New apartments are still expected to come onto the market this year, and unemployment rates may rise further, adding to the apartment vacancy rate.
Editors comment: Now may be the best time in years to bargain with a future landlord, or with your landlord when your lease comes up for renewal!
Business Week in the article cited below discusses the nationwide drop in rental rates. Landlords and owners are being forced to reduce lease rates as layoffs increase across the country and tenants cut back on their housing budgets.
Some markets, including Manhattan, with a high concentration of financial industry layoffs, are seeing rental rates drop for the first time. Landlords may also offer concessions, including one to three months free rent, free gym or club membership, or paying the broker fee for the tenant.
The message for potential tenants is so ask if a lower rate is available, and what can the landlord do to sweeten the deal, before you sign on the bottom line.
Here are the top ten cities and metropolitan areas Business Week lists as having the biggest drop in rental rates:
Salt Lake City
Nassau-Suffolk (Long Island, New York)
Raleigh-Cary North Carolina
New York-Wayne-White Plains metro area
Seattle-Bellevue-Everett, Washington
San Jose-Sunnyvale-Santa Clara, California : Silicon Valley
Rents Drop Nationwide as Vacancies Spike Good news for renters as landlords are forced to offer discounts to keep their properties occupied By: Prashant Gopal Business Week:Real Estate NewsJanuary 22, 2009
The information on RentalProperties.com is intended for informational purposes and not guaranteed. Please consult with an attorney or your own professional advisor regarding your specific situation.
