THE HONEST BROKER: THE STATE OF THE CURRENT RENTAL MARKET

BY: DIANE LOTT, BROKER / PARADISE FOUND REALTY

The rental market has always depended upon supply and demand. When there is a large number of rental units available, the competition amongst the properties to acquire a renter keeps pricing affordable. Consequently, when there are fewer units available, the asking price for rent goes up. Currently, with the state of the hot housing market with increased selling prices, property owners are deciding to sell instead of holding onto an investment, which is causing a shortage of rentals available. This, in turn, has caused rental prices to elevate. Renters are finding themselves in a very undesirable situation. They are having difficulty finding an affordable home to purchase or an affordable rental. This puts them between a “rock and a hard place”. They can’t buy or rent something that is as desirable as what they would like.

Renters are also finding themselves in precarious housing situations due to landlords not telling them of their intention to sell the property until it’s too late for the renter to look and find a new home or apartment. I have heard from many people recently that assumed they were going to be able to stay in their present home and sign another lease term but found out that they had 30-45 days to move because the owner wanted to sell. Suddenly, they have no control with regards to the home they occupy.

There are realtors calling to see if they can arrange showings, which produces concerns for their belongings, pets, and security. Their normal daily schedules are interrupted and now they must work around other people’s schedules and circumstances. In the meantime, they now must go find themselves a new place to live because the landlord was not forthcoming of their intention to sell “until the last minute.” I have had recent clients inform me that their landlord verbally told them that they could renew just 3 months prior but are not scrambling to find a place to live at rent prices a lot higher than they were paying.