Renters Have the Upper Hand, For Now

You would think with the high rate of foreclosures and difficulty many are having in making their mortgage payments that home ownership is falling out of favor and therefore, renting is the answer. And, if that theory holds, landlords and property managers are having a field day with more and more renters coming their way.

Well, surprisingly, an article in today’s Wall Street Journal reports that “apartment vacancies hit a 30-year high in the fourth quarter” and a recent post on Curbed shows rents in Manhattan are down. So, with news of higher vacancy rates for rentals and rent prices lowered, renters are in the driver’s seat, which is a rare place renters find themselves in.

If you are renting a place, now might be a good time to renegotiate that lease,” said Victor Calanog, director of research for Reis, who added that the sector could see a recovery in the second half of the year, buoyed by either job growth or at least the perception that the economy was turning around.

Why is the rental vacancy rate so high? According to WSJ, many would-be renters have moved in with family members or doubled up. Also,  more rental units hit the market including, “some busted condo projects that had to be converted to rentals.”

So, the bottom line is, if you’re a renter, go re-negotiate your lease and if you’re about to rent, there’s room in that price!

> Have a rental?  Post a rental ad on Zillow.