We are all well aware of the prevalence of bidding wars in the home purchase market by now. However, what about the rental market? As it turns out, this segment of the market is red hot as well. In many cases, there are multiple offers on rental units and oftentimes end up going above the asking rental price. In addition to bidding over the asking price on the rental amount, many prospective tenants are even offering higher security deposits in order to make their offer more attractive to the landlord.
A competitive pool of tenants
Many real estate agents and landlords are reporting that this is the strongest pool of prospective tenants in at least 20 years. In addition to higher credit scores, many tenants are offering higher security deposits and even showing extremely strong rental history as well. In addition to the regular pool of renters in the market, we are also seeing many would be home buyers that are also being forced to compete for rental units once again. While this is welcomed news for landlords, it is certainly more challenging for prospective renters.
According to the national rental listing platform Zumper, rents nationally rose 7% year-over-year in July for one-bedroom apartments and 8.7% for two-bedroom apartments, up from 5% and 6.5% annual gains in June.
As for single-family rental homes, the latest data for May showed rents increased by 6.6% year-over-year. This is nearly four times the annual increase seen in May 2020.
Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. At Live South Florida Realty, Inc., we have been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!