Average rents: down
Here's some good news if you're a renter -- and bad news if you're a landlord: Average rents in the Baltimore metro area were 3.6 percent less this summer than they were a year earlier.
That's according to a new report from real estate research firm Delta Associates, which said the average was just under $1,400, or $1.35 per square foot. (These figures are for so-called "Class A" apartments -- nicer places.)
The declines ranged depending on location:
Effective rents in the southern suburbs dropped 2.4% from third quarter 2008 and the northern suburbs fell 3.7% from last year at this time. Effective rent growth in the Baltimore City submarkets was negative over the year, falling 6.1% in both the Fells Point/Inner Harbor and Downtown submarkets.
Another report -- this one from rental listing site Rent.com -- focused on property owners and managers. In a survey, more than 70 percent said they're seeing more vacancies. Most blamed job loss as a factor, while half "said that tenants moved out because they were trying to save money on rent, or could no longer afford it at all."
One money-saving tactic at work: more "'doubling-up' with roommates."
So what are landlords doing in response?
Many property owners are lowering rents (69 percent), providing one or more months rent-free (65 percent) and reducing the amount of required deposits (35 percent). In addition to adjusting prices, property owners are drawing renters by offering upgrades to the rental unit (16 percent), allowing tenants leniency for breaking leases early (14 percent), offering storage or parking at reduced rates (10 percent) and relaxing pet policies (6 percent).
What are you seeing (if you're a renter) or doing (if you're a landlord)?
Posted by Jamie Smith Hopkins at 7:00 AM | Permalink
| Comments (4)
Categories: Landlording, Renting
Categories: Landlording, Renting
Comments
Jamie,What about commercial rents...are they down and where can you find info on commercial rents???
THANKS!
Posted by: Joe | October 16, 2009 9:59 AM
Research firms such as Delta Associates track office, retail and industrial rents as well. (I'm a residential real estate wonk, so I don't follow that side of things.)
Posted by: Jamie Smith Hopkins | October 16, 2009 10:13 AM
Our apartment complex has the same rent as last year (at least it didn't increase), but I see the signs "one month free" next to the leasing office. Don't think there are any other incentives.
Posted by: Jelena | October 16, 2009 2:42 PM
I own 2 rentals that are vacant, but thats OK because they are both paid for with no mortgage. I would prefer to have them rented but can afford to let them sit vacant until I am comfortable that I have a good quality tenant in there. So far all that have applied have shakey jobs bad credit and kids who appear to have little home training. At one point I said let me see what sec 8 has to offer and the ones that came by had an attitude like they were owed something because they nitpicked on details, I kicked them out and have no desire to even consider sec 8 again.
Posted by: Ralph Wiggum | October 18, 2009 3:42 PM