The higher mortgage interest rates climb as the Federal Reserve continues to stave off inflation by increasing those rates, the more rental bidding wars become the norm for more prospective renters.

Demand for Renting Overtaking Demand for Buying

As mortgage interest rates have essentially doubled within the last seven months, demand for renting has overshadowed buying demand.  The results of this increasing demand for rental units?  Prospective renters seem willing to spend hours in line just to see available units.  If those units “fit,” prospects are then willing to pay quite a lot for those rentals, including brokers’ fees of 15%-20% of the annual rent.

According to a mid-May report from Douglas Elliman, 18 percent of all New York City rental listings from the bottom of the market to the top ended up in bidding wars.

Quiz: 

Please choose one answer:

1) I am ready to join EXP Realty. 

2) I am interested in EXP Realty and need more info. 

3) I am not interested in EXP Realty. 

Key:

* If you answered “#1” congratulations. You are about to join the fastest-growing real estate company in the world. Tim and Julie Harris are inviting you to join them at EXP Realty. Text Tim directly for the next steps: 512-758-0206. (text only please)

* If you answered “#2” please watch the videos and check out the other intel on this site. http://whylibertas.com/harris . 

* If you answered ‘#3’ no worries. You will want to check out whylibertas.com/harris so you can at least know what EXP Realty is and why so many agents are moving to EXP. 

Tips to Survive a Rental Bidding War

First and foremost, prospective renters need to decide on their maximum budget and then start looking for apartments with rental prices below that maximum budget.

Why?  Because chances are prospective renters, just like prospective buyers have been doing, may need to pad their offers to the broker, the landlord or both.  How large a pad over the asking rental price?  It depends but brokers report that many apartment units are currently renting for several hundred to several thousand dollars over the asking rent price.

Second, prospective renters need to come prepared to make an offer with all the necessary paperwork in hand, such as pay stubs, bank statements, proof of employment, letters of recommendation, etc.

Third, show up early.  According to Nicole Hechter, an associate broker with Corcoran, “It’s first come, first served.  There will be a bidding war.  (The apartment) will go up in price.”

Lastly, read the lease before signing the lease.

Next Year’s Rent Depends on This Year’s Rent

It’s not enough for prospective renters to decide on their maximum rental budget for today…they need to have a ballpark sense of their long-term rental budget before they sign a lease.

Why?  Because future rent increases will be based upon the price prospective renters agree to pay today.

Again, read the lease before signing the lease.

Thanks to the New York Times.

URGENT! Exclusive Invite: Join Premier Coaching for FREE! You read that correctly, Premier Coaching for the first 30 days is 100%, no strings attached FREE. Here is what you get: DISC Personality Test, Seller and Buyer Scripts, Presentations, Lead Generation Systems, Market Shift Plan, Real Estate Treasure Map, Members Only Community Groups (and a ton more). The best part is you will have a DAILY Live Coaching Call with a Harris Certified Coach. Yep, you read that correctly….every weekday you will attend a semi-private coaching session with your coach. All of this is 100% FREE. Of course, you want to join Premier Coaching. There is Zero Risk and joining costs you nothing. This is the Real Estate Success system you need in this quickly changing market. Join Premier Coaching NOW.

Claim Your FREE Real Estate Treasure Map!