As foreclosures mount and homeowners attempt to downsize in the face of rising mortgage rates, renters of apartments in NJ look more intelligent with each passing day. The U.S. housing crisis has ruined many real estate dreams, but renters are currently in position to take advantage of the situation.
One would imagine that foreclosures and rising unemployment figures have driven thousands of homeowners into rented properties. According to MSN’s real estate blog, however, rents nationwide fell a record 3.5% in 2009.
The writer confirmed that with the vacancy rate “at a 23-year high of 7.8%, the opportunities are endless for renters with the means to pick up and move. They can shop around for a better apartment, a better location and, of course, cheaper rents and myriad perks,” (“Roll out the red carpet for renters”).
Amazingly enough, the writer suggested, the thousands facing foreclosure haven’t yet moved into apartments in NJ or across the nation. As the national unemployment rate hovers around 10%, “more people are choosing to move back in with mom and dad or into shared housing,” (Roll out the red carpet for renters”).
But what happens to those without the luxury of trading a mortgage payment in favor of putting up with parents again? Well, renters are in the driver’s seat.
While the aforementioned writer did not specifically address apartments in NJ, landlords are offering surprising perks to both prospective and current tenants. The article mentioned two months of free rent, flat-screen televisions and gas cards, among other extras. Some management companies are even paying brokers’ fees (“Roll out the red carpet for renters”).
If such benefits aren’t offered up front, it can’t hurt to ask. One renter who recently renegotiated her monthly payment suggested that those seeking a bargain should survey what friends and neighbors pay, speak to the super about vacancies to determine how desperate the landlord might be and consider multi-year leasing options to reduce costs.
The bottom line is renters are at long last in power. While homeowners have been celebrated as stable and forward thinking, plummeting real estate values have changed the game.
As MSN’s real estate blog verified, renters are finally in position to take financial advantage of the struggling housing market, even without securing a mortgage.
