Let the bidding war begin. And I'm not talking about residential, condo or multifamily home purchases. I'm talking about rentals. Rental prices are now at an all time high due to foreclosure victims, college students looking for housing, and people relocating for jobs who are afraid to buy and unsure of where they may end up. Rental properties that may have been on the market for a while, are now getting multiple offers within days of listing. Realtors at this stage of the game need to be more creative in finding their many rental clients places to live. Placing calls to craigslist ads, calling the numbers on 'for rent' signs on the side of roads, asking friends if they or anyone they know is looking to rent; these are just a few things I have found myself doing in order to help out my clients find a place to call home. Paperwork needs to be in order before potential tenants set foot in their first rental prospect. Realtors should have all the paperwork ready to go beforehand so we can make an offer quickly. Rental applications, credit checks, proof of funds, ready to go! There's no time to waste as the property may be gone the next day, or more specifically the next hour.
Are there alternatives?
I've also been urging clients with good credit and stability to purchase instead of rent. House prices are low, low, low right now, as are the interest rates. Probably pretty darn close to the lowest they are going to get. Why not buy? If you are planning on sticking around for at least a year and have good credit, buying makes more financial sense. Gain equity in a home and stop wasting money. Stop giving it away on a high priced rent every month. A home able to be mortgaged for about $1000 per month, tenants are paying about $1500 per month for rent instead, and they are not getting it back. Ever. Buying a house right now just makes sense, and the home prices are only going up from here. And so are the rents!
by Cassandra Ritone May 6, 2012
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