As the 2012 Rental Season heats up, communications with many of Rentology’s property owners has revealed a larger than average renewal rate among their current tenants. Since many renters negotiated the rental prices of their current apartment, landlords are now asking their tenants to come up in rent for the renewal term, often with little resistance. Knowing that keeping their current tenants will be easier than finding new ones, but also knowing that an improved market would allow for better rental prices, landlords are giving current tenants the option to renew at a slightly below market price.
What does that mean for current apartment seekers? Less availability and higher prices! With fewer apartments available, the basic principles of supply and demand are in play; less available apartments are driving prices up! Those that have explored the rental market in hopes of finding a better deal have found similarly or even higher prices apartments. Additionally, an improving job market is making current rental rates, or even modest increases, more affordable to those with job stability. Weighing the cost of moving over increased rent, many renters have elected to renew at their current apartment.