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Scary Real Estate Trends Update: A Rental Market Appraisal

Yesterday, we listened in on rumors of a rental bidding war in Park Slope, and virtually asked broker/blogger Property Grunt for his take on the phenomenon. This morning, he responds:

Tell everyone to chill out and cut down on smoking so many bowls. That is what is getting everyone paranoid. What Callalillie experiencing is perfectly normal for this time of year.
His full appraisal of the rental market?including "Landlords are definitely enjoying this bounty and have turned the tables on clients"?awaits you, after the jump.

Property Grunt emails:

Tell everyone to chill out and cut down on smoking so many bowls. That is what is getting everyone paranoid. What Callalillie experiencing is perfectly normal for this time of year.

First of all this is one of the heights of the rental season due in part to students coming to the city and people coming back from vacation. So the demand is definitely there.

As we all know, beginning last year there was a chain reaction from the insane residential market. Because prices were so high a lot of buyers decided to sit this one out until things cooled off. This was great news for rental brokers because the assumption was that these buyers would now become rental clients. There was one problem. A lot of buyers simply re-signed their leases which resulted in a huge lack of inventory on the market which became evident when the spring arrived and ton of rental clients enterned the market but it was slim pickings all around.

Landlords are definitely enjoying this bounty and have turned the tables on clients. This has forced clients to become more creative in their housing needs. Which means expanding their search to other boroughs.

Although I do not do business in Brooklyn I have frequented the area many a time and I have noticed a signifigant number of young people who live and enjoy themselves in the area. So I am not surprised that Callalillie is experiencing this type of commotion. Manhattan is just too damn expensive for the majority of us. Besides they have better pizza in Brooklyn that is definitely worth the 2 bucks.

Do rental bidding wars occur? Yes. If a landlord gets a group of very qualified clients then a clients have to step up to the plate and offer more to the landlord. Some clients just offer a higher rent outright in order to secure the apartment.

Is this always the case? No. Sometimes the landlord will take the first qualified person they can find because they do not have the time or patience to go through all those applications.

I strongly advise Callalillie to keep looking because they might find that deal. Even though there is a ton of demand in Park Slope, a landlord will get a ton of applications that are chock full of bad credit reports or idiot clients who attempt to haggle over the rent despite not having a leg to stand on. If you have excellent credit, a secure job and do not play games with your landlord you should be fine.

You could also wait till the winter when the rental season usually ends and landlords are more generous with negotiating with the rent. It is up to you.
· Scary Real Estate Trends: Rental Bidding War [Curbed]