Winter deals are coming
LOOKING FOR A BARGAIN ON A RENTAL UNIT? NOW MAY BE THE PERFECT TIME TO FIND ONE
An old method of getting a bargain — buying in the offseason — works well when you’re looking for a rental.
On average, renters pay about a 3.9 percent annual discount by signing a lease between December and March, a recent study from RentHop finds. Lower rates are also available in November in many markets.
“In most locations, there is a ‘winter’ season that represents a slower rental traffic time,” agrees Joe Greenblatt, CEO of Sunrise Management. “The season is not universal — think Sunbelt cities — and in some cases, it runs only through February,” Greenblatt adds.
Another report from Yardi Matrix finds that rental deals being offered now aren’t due solely to seasonal factors, but to a big supply of new luxury rental units in markets that landlords are looking to fill. The Yardi report doesn’t expect the oversupply of new units to last for a long period, perhaps just a few months.
Older buildings can offer lower rent rates compared to new projects, but competition from new rentals might force concessions at older apartment complexes, says Shane Lee of RentHop.
One big difference in snagging an apartment deal: Don’t expect a reduction on the stated monthly fee because property managers like to keep monthly rates stable throughout the building. What you’re likely to see is a period of “free rent” offered.
“Say the rent is $1,400 per month, and the landlord offers one month free with a 13-month lease. While the gross rent remains the same, the net rent comes out to $1292,” Lee notes.
Besides renting in the offseason, signing a lease term other than the traditional 12-month period might also result in concessions from a landlord, since they don’t want numerous vacancies occurring at the same time.
Renters shouldn’t be afraid of negotiating with a landlord, mentioning the offseason or their willingness to sign a lease for other than 12 months, Lee says.
“Generally, I find that the concession (offered) is a function of supply and demand foremost, not (a renter) credit,” Greenblatt concludes.