Dust off your rental application. Check your credit report. Update your resume. Get a haircut. Suit up for your "Rental Career."
Rental Wars are returning.
A growing number of rental market reports point to a tightening rental market nationwide largely do to the cost of owner-occupied housing.
If you want to land affordable rental housing in the changing market it's time to change your shopping strategy to a more "Rental Career" approach.
Most recently, the National Multi Housing Council's (NMHC) April 2006 Quarterly Survey of Apartment Market Conditions recently found that 72 percent of the 75 senior executives of apartment-related firms nationwide who also serve on NMHC's Board of Directors or Advisory Committee reported tighter conditions -- higher rents and occupancies. That was the second highest number on record.
John Burns founder of Irvine, CA-based RealEstateConsulting.com dubbed "2006: The Year of the Apartment" because home prices -- up 13 percent in the last year and 58 percent in the past five years nationwide -- have moved beyond the reach of many middle-income households, forcing them to rent. Novato, CA-based RealFacts said first quarter data revealed demand for rental homes generated a 94 to 95 percent occupancy rate and a 5 to 6 percent annual rent increase rate in many markets in monitors in a swath of 15 states largely concentrated to the west of the Mississippi River, but also Florida and Indiana. National Real Estate Investor's senior associate editor Parke M. Chapman, reported recently a ripple effect was moving through the homes-for-sale market in the South, where lingering increases in home prices are destined to set off a similar trend in rents. Instead of the old approach to renting -- schlepping from one apartment complex to the next looking for affordable shelter -- it's time to get an edge on the competition.
Develop a "Rental Career."
Approach your rental-housing search like you would a job search. Be organized, serious, and professional in both actions and appearance so that you stand out as the best applicant. Leave the shorts and flip-flops for the beach. You want to make a good impression and demonstrate that you will be a good steward for the landlord's property. Contact your references ahead of time to be sure your information on them is current and that you have their permission to use them as a reference. Keep your credit in good standing. Obtain a free copy of your credit report from the one and only federally-sanctioned AnnualCreditReport.com. Examine it, correct any errors, and make sure what you say in the rental application is consistent with what the landlord will see on the credit report. Likewise, any data compiling agency, including major rental screening operations regulated by Fair Credit Reporting Act (FCRA) and its Fair and Accurate Credit Transactions Act (FACTA) amendments are required to give you access to your data for free. If a report isn't free and you can purchase it, do so.
ConsumerAffairs.com's five-part series "Behind The Screen Door: The Ins and Outs of the Rental Screening System" is required reading for all renters.
Be prepared with all the information you need to complete a rental application. That includes, full, prior addresses, bank account and credit card numbers, a list of references. Landlords will not respond to incomplete applications. A rental application form, available online and from legal self-help, community and social organizations, prepared in advance, may be acceptable. Even if the landlord rejects it, it is a good way to compile your information for on-the-spot easy transfer to the landlord's application. Consider preparing a renter's resume -- a chronology of your rental life, just like a job resume is, in part, a chronology of your career or work life. You may have to repeat the information on the application, but you will stand out as well-organized and prepared. Let all your friends, family members, associates and co-workers know that you are looking for an affordable rental and what you want in a rental home. Explore newspaper classified ads, renter magazines, and the Internet for listings. Post notes on bulletin boards at public places you frequent. Check the latest listings first thing every day, and call early. Respond quickly when a landlord calls you back. If you have a cellular phone, leave that number and have it on while you are out looking at other apartments or forward your land line to your cell phone when you are out. If you leave a message on an answering machine, be sure to speak clearly and slowly, and repeat your name and phone number. Don't leave messages if you aren't going to be available for the next few hours or more. If you won't be immediately available to accept or return calls, state when you will be available when you leave a phone message. Know what you really want, and what you don't want in terms of square footage, rooms, housing type (single family home, apartment, duplex, etc.) and shop that market. Be flexible with the rest of your criteria (amenities, concessions, etc.). Be prepared to decide on the spot and be prepared to leave a deposit and/or credit check fee. Finally, rents are rising. If you are renewing your rental contract or renting anew, lock in your rental costs as much as possible by negotiating for the longest rental contract your lifestyle permits. Certainly, don't lock into a long-term contract if you know there's a chance you may be relocated or will have to move after a short period. Any savings you hoped to enjoy from a long term contract could be lost in costs to break the contract. Before signing on the dotted line, be sure you understand the terms of the contract, the monthly rent, due date, deposits, required care and upkeep, community or house rules and any other details. Get help with any of the terms or details you don't understand.
