The new way many rental rates are set.

blog~simplesearchapts.com  June 8 2010 08:27:41 PM

On the last post,  we touched on how properties  set the rental rates. More and more properties are using rent optimizing programs like Yield Star. I understand the benefit to large property groups. You can see the justifications by Yield Star by clicking here.  

Programs like Yield Star reconfigure rates daily. The price can, and often does, change on a daily basis.

Now, my concern is how these types of programs effect the renter. We no longer see the “move in special” because the rates are already incentivized  by the program.   So, according to properties, you are already getting the best deal and the lowest rate.

What they do not want you to know is that you are not always getting the best rate. Since rates change so quickly, how can you ever know? The changes in rate are based on move in date, lease term and number of like units available to lease. Any change in any one of the factors can change the rate significantly.

So what does this mean to the renter? Well, it definitely complicates things. The leasing agent will tell you that you are “getting the best rate” and that “specials are built into the price”.  That is not always the case. For example, if your target unit is move in ready now, and you do not want to move in for 2 weeks, then you can expect to pay a lot more for that unit. That is how the program works. It charges more for  units the longer the move in date is from the 1^st day  of availability. That is just one example of the flaws I see in this program.

Granted, I have a different perspective. I am an advocate for the renter. I do not care about maximizing the bottom line of the property.  I care about finding a good deal for our customers. The reality is that these types of rent optimizing programs are in place to benefit the property owner.  

This change in the rental scenery increases the importance of using a professional apartment specialist or locator. A good apartment locator has information on market trends, comps and can see the big picture.

There is no way the “average Joe” can completely understand this shift in the rental market. Renting an apartment without the assistance of a professional locator is just silly.

So do yourself a favor, get a hold of a qualified apartment locator the next time you need a new apartment.

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Move in Specials

blog~simplesearchapts.com  May 7 2010 12:19:39 PM

The rental market is competitive with hundreds of properties vying for your business. Some properties use rent optimizing programs that build in the incentives into the pricing. That means they do not offer “1 month free” deals. The savings are already built into the pricing with reduced rents. Pricing can, and does change often with these programs. So, if you get a quote from a property, be sure to ask them how long the quote is good for.

Some properties still use “look-n-lease” specials as extra incentives. These incentives can include free rent or reduced move in costs. However, these extra incentives generally come with a time restriction. The property will ask you to make a decision within a certain period of time, usually 24 to 48 hours after your initial visit. So, it is important to understand what type of incentive is being offered and if you have a time limit to decide  on the apartment. It would be a shame to leave some money on the table by deciding to take an apartment after the special has expired.

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Washer/Dryer Provided vs Renting Washer/Dryer

blog~simplesearchapts.com  March 29 2010 12:48:33 PM

Many people prefer to have a washer/dryer in the apartment. It makes sense. Going to a laundry can be a hassle and the cost per load adds up quickly. The simple convenience of a washer/dryer makes it one of the top priorities for many renters.

Some properties offer a washer/dryer with their apartment.  This extra perk may be one of the deciding factors when choosing between properties.

Renters should be aware that you can also rent a washer/dryer.  A few companies offer this service. They deliver and install the set. Often times, there are no long term contracts. They will remove the set when you no longer have need of renting. This cost is around $30.

 Keep this number in mind when comparing properties. If you factor in this cost, you can make an apples to apples comparison.    

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Background Issues?

blog~simplesearchapts.com  February 24 2010 12:23:47 PM

So you need a new apartment and have a few issues on your background. Some folks  have credit issues from student loans, medical bills, credit card defaults or bankruptcy. Some may have rental history issues from a broken lease or eviction. Some may have issues proving income, whether it is from tipped earnings or some other undisclosed and untaxed income. Some people have a criminal record.

Well, an apartment locator can help. Part of the process for all locators is to inform customers the qualifying process for rental properties. This includes going over rental history, income requirements, credit criteria and criminal background. When your locator asks if there are any issues on your background that may raise a red flag, be honest. Do not hold back any pertinent information. If you do, it will come up in the qualifying process. It may lead to a rejected application. This will cost you time and quite possibly money from any application fee.

So, be upfront on any background issues. A fully informed locator can avoid properties that will decline you based on your particular issue. Some properties are less strict on credit. Some properties work with broken leases and evictions. Some properties work with criminal background.

There are options in the rental market. Your apartment locator will help find you the properties that best match your own particular rental needs. Just be sure to be honest about any background issues. It will save you time and money.

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Lower Rental Rates in the Recession

blog~simplesearchapts.com  December 15 2009 11:34:56 AM

We are still in the middle of a recession. Everyone is feeling the pinch. However, there is one small positive to economic downturn. Rental rates in Austin have dropped. In some cases the drop in rates has been significant. Now is a good time to get some of the best rates in years.

If your lease is coming up for renewal, you may want to check out the rental market before renewing. There are some fantastic rates in Austin right now. Plus, most properties are offering incentives to move in. One month free plus reduced rates is not uncommon.

Check with your Austin apartment locator to get a better understanding of the current market. It may be beneficial to relocate to another property.

At the very least, use the current market to negotiate your renewal. There is no reason for your renewal rate to increase. Some properties may even reduce your rate. It is worth taking the time to educate yourself on the current market. Then, you can make an educated and informed decision on what the best option is for you.

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Austin Apartments Update

blog~simplesearchapts.com  October 15 2009 08:19:05 PM

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It’s hot our there!

blog~simplesearchapts.com  August 21 2009 06:20:07 PM

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Austin Apartment Locating Adventures

blog~simplesearchapts.com  August 18 2009 07:13:06 PM

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Austin Apartments

blog~simplesearchapts.com  August 10 2009 07:14:27 PM

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Apartments in Houston

blog~simplesearchapts.com  July 6 2009 08:01:30 PM

Not a whole lot to report out in Houston.  Just leasing as usual.  The deals in Houston are getting better all the time.  I wish I had some good stories to pass along, but I have to say everyone has been behaving themselves lately.  I have been making my rounds and helping a lot of people so it's been good.  I hope everyone got their fill of fireworks for the 4th.  I got some much needed time to relax.  Everyone be safe and I will talk to ya'll later.

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