The Jackman Group has provided their latest research into the state of the apartment market.
Nothing very surprising in here. Renters are moving in together or moving back in with family. Some renters are taking advantage federal incentives to buy homes and leaving the rental market.
There is also still some oversupply since construction cannot stop as quickly as demand drops.
All that being said, apartments are still doing better than homebuilders based on lending by Fannie and Freddie.
Austin still has above average vacancies which is good news for renters to try and negotiate better prices and more concessions. Personally, I notice one exception in the properties around campus. Demand there is pretty constant as well as many places being run by lifestyle managers, so they are more comfortable having vacancies than they are lowering rent.
You can see the entire report here.
Well – maybe.
This pretty thorough article discusses the ins and outs of several apartments/condos downtown. I’d encourage you to read it but here is a quick summary.
While Austin hasn’t felt the crunch like many areas, the downtown apartments aren’t getting the rents or the occupancy rates they were hoping for. Many places are offering concessions that brings a the prices down 100’s of dollars a month.
You still take a bit of a gamble when you buy on concessions. Its much better to actually get a lower rent because you are very unlikely to get the concession if you renew your lease.
Depending on how long you think the recession is going to last, this is probably as good as you can hope to getting a place downtown. You have as much leverage as you can get. Don’t be afraid to tell them you want to think about it or ask about more stuff and lower rent.
Read it all here.
And you can always get the most recent prices for apartments in downtown here
A personal story this time. I received notice that I had to resign my lease. They told me that they were going to raise my rent. I put on my negotiating hat.
Long story short..my rent is still going up. I got a free steam cleaning, a bathroom refinishing, and maybe a new parking spot.
Here’s how I did it.
I went in and said I had some questions. I mentioned that several of my friends had their rents cut (true) so why was mine going up. She gave me a long answer that I didn’t pay a lot of attention to.
Without really acknowledging her explanation, I told her that if I went to a new apartment I would be able to get some covered parking, new carpet and a clean bathroom. She instantly agreed to clean the carpet and refinish the bathroom. She said that parking lot was impossible. We talked some more and she agreed to let me know if a covered spot was available after their pre-leasing period was over.
Honestly, I don’t think it was my power negotiating that got me anything. I think she had a certain amount of things she was allowed to concede and I asked for some of the things she was allowed to give. I also think they were the things that would happen in the apartment if I moved out.
I really didn’t want to move so I didn’t have a whole lot of negotiating power. I got a whole lot more than the people who didn’t ask for anything. Knowing that I can get the cleaning that they would do if I moved out…that is what I will ask for next time.
What I find interesting is that according to the article it is at 100 percent occupancy…but it has awful reviews
36 percent approval at the time of writing. Its tough to read too much into reviews, but the landlady not being around seems pretty consistent across much of them. Maybe new management will turn that around.
Summer Grove, a 124-unit complex at 7905 San Felipe Boulevard, was purchased in late February by Summer Grove Properties LLC of Santa Rosa, Calif. The seller was Bryan Stern with Baron Properties LLC of Greenwood Village, Colo. The purchase price was not disclosed.
From here. (Ignore the inaccurate title)