Manhattan Rentals: Fewer Choices and Higher Prices
According to Wall Street Journal's Marketwatch, Manhattan is seeing some of the lowest vacancy rates since the peak of the 2008 real estate crash. While the country continues to boast a staggering 6.2% vacancy rate for homes, Manhattan saw a first quarter vacancy rate of 1.08%, down from 1.45% a year earlier! An exception to the laws of real estate supply and demand, New York manages to weather out bear markets rather quickly. As the city's economy bounces back under Bloomberg's administration, it continues to attract more of the newer and younger residents that drive its economy. This influx closes in on the gap of vacancies created by the housing crisis.
Waive the Fee?
What this means for you as an apartment hunter? Simply, there are fewer apartments to choose from and those that are available will cost a lot more than what you would have paid for it a year ago. According to Citihabitats, "From a home-seeker's perspective, apartment hunting is growing increasingly competitive." On average rent has increased 7% on all types of apartments. What's worse is that the landlords and brokerage firms now have the upper hand. Last year, you could have negotiated yourself out of a $3000 broker fee just for promising the broker that you would send your friend her way. Now the fee won't even be an item of question, as you line up just to get a glimpse at the apartment.
Take Heed
So you've been kind of lazy and don't want additional work. What are your options, you ask? Well, for one, don't move! If you live in a relatively comfortable place in the city and were lucky enough to have secured a decent rent last year - stick with it. The odds of you finding a better deal are now against you, and if you're lazy, do you really want to deal with moving all that crap, anyways?
If you're of the kind where you don't mind putting in some effort to find that killer crib, then our advice is to get smart and organized. No amount of prep work and homework ever goes unpaid. Here are some tips to help you through the process:
Look early - at least 3-4 weeks before you need to move. Get into the rhythm of talking to brokers and making appointments. It's a skill learned only through practice.
Hedge your bets - start tracking as many potential apartment listings as you can (10-20). You're going up against some stiff competition (other young people with a lot of disposable income), so be prepared to lose a few battles along the way.
Be quick - sometimes apartments can turnover within a day - be ready to sign if the opportunity presents itself.
Charm their pants off - if its still too early to sign, then sweet talk the brokers. Real estate brokers' work depends entirely on social relationships, and establishing one with them early enough could mean the difference between preferential treatment and the cold shoulder.
Stay organized! Start using something to keep track of all of your listings. Make sure your roommates stay abreast of what is going on. Keep all communications about the apartments readily available, and make sure you don't get confused between similar sounding apartment listings on Craigslist! You do not want to be the guy/gal who ends up seeing the same apartment twice under two different brokers! (Yes it has happened). Tools such as Mapthatpad are designed for the sole purpose of organization. Take advantage of them.
Goodluck, and Happy huntings!
View entire article here-
http://www.marketwatch.com/story/in-manhattan-low-vacancy-fuels-steep-rental-rise-2011-05-11
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