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Oct 19, 2009 -- Look beyond standard one-year leases to lock in low rents
Are you among the one third of Americans who rents? The market is smiling on you with the potential for some great monthly savings.
Rents are undergoing the steepest year-to-year decline since 1995. That's because vacancies are fast approaching the highest level since stats started being kept.
If you're a renter, start shopping for a better deal two months before your current lease ends.
What you don't want to do is become a victim of your own inertia. Humans tend to be creatures of habit and that too often translates into wanting to stay put where you already are. But that kind of attitude will prevent you from taking advantage of the deals out in the marketplace.
Apartment owners are hurting. They have to compete with the shadow market, which is composed of those who speculatively bought condos and now are stuck renting them because they can't sell.
finally, this is also the moment that if you plan to stay put, you should negotiate the longest-term lease you can. Look beyond the standard one-year leases and lock in for two or three years at today's low rents if you're not planning on moving.
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We got $250.00 off of our July rent if we signed a new lease. Then when we went into the office, it turned out they were just giving us back $250.00 out of a $500.00 100% refundable deposit we paid when moving in 2 years ago. On top to that, we found out, that by State Law (Oregon) any rental deposits taken for any purpose other than security have to be refunded with in 12 months times. So, the complex really just gave us our won money back, and conned us into signing a new 12 month lease.
Any upset of ours, we have gotten onto Craig's List more than once, and discovered that this same complex is renting the same exacat unit like we have for a lot less money! We paid $650.00 a month, and they are advertising our same units for $615.00 and then most recently, $575.00 a month!!!
Quite A Few Things Have Not Made Sense..
I've been renting for a number of years, and a lot of things regarding renting have infuriated me, and (at first glance) don't make sense.
1. College-town leasing offices treat you like dirt, and don't offer 6 mos. leases.
2. I don't understand why I, as a friendly, RESPONSIBLE tenant, ALWAYS have the renewal notice with increased rent if I stay.
New renters will the the same or almost same rent I pay, but mine will be higher! Plus the rental office's time & effort for preparing a new lease for new tenants. Doesn't make sense!
Despite all the talk about apt. complexes needing tenants, I was still getting mediocre offers for apartments in Fulton County. Finally got a better deal in Alpharetta.
When I moved out of my old apartment in Duluth I they said it was the cleanest they'd had for a move-out!
I just don't understand why it's so hard for FRIENDLY, CLEAN, and RESPONSIBLE TENANTS WITH GOOD CREDIT & REFERENCES to get a break.
I don't give much credit to all the talk about "rental markets." Correct me if I'm wrong.
locking in long term leases
residential leases longer than one year come with risk. first, they limit your ability to relocate due to job loss, job advancements or other factors both good and bad. remember you are trading a small upside (fixed rent expense) for a tremendous liability if you have to move.
Second, for landlords, in many states residential leases longer than one year have to be notorized to be legal.
Personally as a landlord who owns two properties in the seattle area, I see little benefit to entering a lease longer than one year. If push comes to shove, a tenant will move irregardless of a valid lease if they either can't afford to pay or have other economic reasons to move elsewhere. In exchange, you are locked into no increases in rent. In other words, heads the tenant wins, tails you lose.
Negotiate hard!
My roommate and I negotiated rent to what I thought was a pretty good price. Over two years we were also able to win concessions from the landlord for various apartment issues, as well (to his credit, he never argued with us). We were the only apartment to be occupied for a full year with the same tenants, much less 2! It turns out there were apartments nearby of comparable quality for slightly cheaper. We should have negotiated harder. So my advice to you is: there are plenty of fish in the sea, negotiate hard!
