Offering Rental Incentives
February 8th, 2007 The cost of renting is primarily affected by supply and demand. When there are more renters competing for a limited number of rental units, rents typically rise. On the other hand, when there are more vacancies than the supply of qualified applicants, rents usually drop.
Currently, the rental market in the Sacramento Valley region seems to be heading in the direction of stable rents. One indicator of the changing rental market is the growing number of €œfor rent€? signs around town. Another indicator is an increase in the move-in incentives offered to renters. Although one month of free rent or lower security deposits are common move-in specials, some apartment communities are offering a free DVD player and even a chance to win a trip to Europe.
One reason for the change is the large number of renters who took advantage of low interest rates and bought their first home. That reduced the number of renters in the market, and the slow economy and lack of significant job growth in our area has not yet replenished the supply of renters. The current competition for renters is forcing rental owners to lower rents and offer incentives.
All of this is good news for renters. If you are new to the area or renting for the first time, take advantage of the incentives available to you. By signing a long-term lease for six months or one year, you may receive one month of free rent (usually the last month of your lease).
For existing renters, if your lease is up or you are renting month-to-month, you may be considering a move to someplace with lower rent, or looking for more space for the same price you are paying now. However, before you make such a move, contact your current property manager or owner. If you are a good renter, they may offer to lower your rent or perhaps install new carpeting. In times likes these, they know that finding a replacement for a good renter might take awhile.