Landlords will hike rents by 8% this year
Don’t expect any rent breaks (or cheesecake) from your landlord this year.
Alex Thornton, 34, a video producer based in Fort Greene, a hip enclave of Brooklyn, N.Y., is looking for an apartment to rent in neighborhoods across the borough. What he’s found: Prices are up considerably over last year and, on at least one occasion, the rent even went up after he and his fiancé Christopher expressed interest in a property. “The rent is increasing faster than people’s salaries,” he says. “Landlords want you to make 40 times the monthly rent per year and want tenants to have an unrealistically high credit score,” he says. “Even those who have a decent salary can’t find a place that would match their financial status.”
And it’s not just in New York. The majority of property managers are planning on showing little mercy to their tenants this year. Some 88% of property managers raised their rent in the last 12 months and 68% predict that rental rates will continue to rise in the next year by an average of 8%, according to a survey of more than 500 of Rent.com’s property management customers, which the site says represents thousands of rental properties and hundreds of thousands of rental units. That’s nearly three times the wage increase that most employees can expect this year.
What’s more, 55% of property managers said that they are less likely to offer concessions or lower rents in order to fill vacancies. One reason why they’re getting even tougher: They are in a stronger position than they were this time last year. More than 46% of property managers surveyed reported a decrease in rental vacancies in Rent.com’s survey and, in the second quarter of 2015, vacancy rates in the U.S. for rental housing was 6.8%, the lowest it has been in almost 20 years, according to data from the U.S. Census Bureau.
Full article here: http://www.marketwatch.com/story/landlords-will-hike-rents-by-8-this-year-2015-10-07