The Expert Podcast

• Just when you thought bidding wars were limited to homebuyers, renters are now facing the same issue. With competition among tenants increasing, many are finding themselves compelled to offer more than the listed rent to secure a desirable property.
• Source: Wall Street Journal article discussing the rise of bidding wars in the rental market, especially as we near July 2022.

• Many desirable properties are seeing multiple tenant applications, with some offering higher rent to move to the top of the list.
• Tenants who were unable to purchase homes or had been shut out of their existing rental properties are now offering higher rents just to secure a lease.
• Are you seeing this in your market? Are rents going up? Is it becoming harder to find a rental?

• Donna Jones and her husband in Virginia were rejected from a rental because another tenant offered more money. They were unaware that bidding for rental properties could happen.

• This trend is growing among white-collar professionals reluctant to buy homes due to high prices. Now, they are applying the same strategies to rent.
• Is this practice a good or bad idea?
• For those planning to buy within a couple of years, paying a bit more for a rental could be worthwhile. A $200 rent increase could equate to $5,000 over two years.

• Some renters are rethinking rent increases. A tenant previously paying $3,200 saw their rent rise to $4,500, but after searching the market, they found rents for similar properties were around $5,000. Their $4,500 rent didn’t seem too bad after all.
• Negotiating with landlords to stay in the same property can sometimes lead to a better deal than moving.

• With fewer homes on the market and a decrease in home sales, will rent prices stabilize? The question remains: will waiting for a better price in the housing market make a difference?

• Are you experiencing bidding wars in your rental market? How are landlords setting prices? Let us know in the comments.