Housing Crisis Did Not Stimulate Rentals
In a very unscientific survey - I talked with a friend of mine who is an apartment manager - I found it fascinating that the jump in home foreclosures did not provide a big boost to apartment and other property rentals. In fact, many companies that specialize in tenant housing saw the foreclosure problem coming and BUILT to accommodate the displaced homeowners in advance. Some are still building.
Instead of renting, people are doubling up. They can’t afford their mortgages, much less rent payments, so they’re moving in with family and friends instead of leasing somewhere else. Between this and the new construction of apartments, some rental communities are struggling to find tenants. For example, in Phoenix you can find some really great incentives to move into apartments according to the Arizona Republic,
At Papago Crossing Apartments, 4530 E. McDowell Road in Phoenix, Daniels is offering a $99 move-in special that covers a new tenant’s first month, which is fairly typical in today’s market.
The company is also promoting a drawing it plans to have in June for one lucky tenant to win six months’ free rent.
What can a current resident do when they see their neighbors moving in at a hugely discounted rate? Not a thing. They are still in a lease obligation until the contract expires. However, they may be able to renegotiate the terms of their new lease when the first one expires.
Finally, many possible renters may not realize that apartments and other property managers EXPECT renters to have low credit scores…. it’s a sign of the times. What’s most important is they have the income to pay the rent and they have a good reference from the apartment BEFORE the place they are now living. (Current landlords may give a great reference in an attempt to get rid of a problem renter).
It’s definitely worth the application fee to see if you can rent before you move back in with Mom and Pop. You may just find yourself living in a place with a swimming pool and no home maintenance fees!
Photo by CincyProject through Flickr Creative Commons.
