The Expert Podcast

Just when you thought that renting might be a viable option In the face of huge bidding wars on home buyers You're going to find that the same thing is starting to happen with renting And you may think that well isn't this old news Right Isn't there a recession Isn't there a pullback Well this is the end of June almost July of 2022 And according to the wall street journal bidding wars are now starting For renters Competition among renters means that many tenants feel compelled to pay more than what the last is asking
There's a lot of properties that are desirable that come on the market For a certain price There's more than one potential tenant applying for that property Even without the management company Or landlord asking One of the tenants Wants to jump to the top of the list So they offer more
According to the article Many tenants who have been shut out of their existing property or had trouble finding a home to buy Are now resorting to offering higher rent For properties that are advertised Are you seeing this in your market Are you a renter that had your rent go up And having difficulty finding a replacement property
According to the article they interviewed Donna Jones and her husband They were looking to rent a home in Virginia And they were rejected because somebody else offered to pay more And according to the A person with interview They didn't even know you could do that Bidding wars have long been a staple of housing markets on buyers but increasing number of white collar professionals Are reluctant to buy because of perceived how high housing prices But they're now doing the same thing to rents. Is this a good idea Is it a bad idea
What you're going to find is a rent increase is temporary So for example if you know you're going to buy
In the next couple years You might be willing To raise your rent a couple of hundred to get that property You know you need think about it a couple of hundred dollars a month is maybe 2,500 a year 5,000 over the course of two years To get the right property Some people are willing to pay that extra money especially since it's spread out
Now the question is going to be is the purchase market going to be any better until years that remains to be seen
A lot of indicators say it's not even though there'll be less homes for sale And less home sold at a lower volume The prices may not come down They may not go up much more But waiting might not save you that much in a purchase price So what do you do if you're a renter Some renters are starting to look at their Raised Rent factor from their landlord or current property as maybe not being that bad after all Talk to a tenant couple weeks ago whose rent was 3,200 The landlord raised it up to 4,500 and they were indignant That was too much And it was a too much of an increase it put in there There are noticed they're going to leave But when they went out into the market to find properties To rent They found that everything else like there's was $5,000 So they're 4,500 Wasn't such a bad deal after all Sure It was more than what they were paying But it was less than what the rest of the market was So they ranged to to work with their landlord Fortunately their landlord hadn't rented it to somebody else And they were able to negotiate something because it was good for the landlord to they don't have to have a gap in between where there's no rent and have to get a new tenant where there's an expense So I believe they were they found a way they have a little bit less transition cost Plus they don't have to move and pay the expenses for security deposit first and last those kinds of things Tell us in the comments what's happening your market Are your rents being bid up By multiple tenants Or the landlords pricing them too low where people want to pay more money Tell us what you think