Anyone that has attempted to purchase a home in the past several years has likely encountered a bidding war resulting in submitting a highest and best offer for the property. However, a lesser discussed phenomenon is that highest and best offers are also increasingly common in the rental market. In fact, throughout many metropolitan markets, renters are having to submit their offer early and likely waiting to hear back on a deadline to submit their highest and best offer in an attempt to secure a rental property.
Why is there such strong demand for rental housing?
Simply put, some markets such as the South Florida market, continue to experience significant population growth. A major driver in these migration patterns to South Florida is the gaining popularity of the remote workspace. We have previously written several articles discussing this topic and they can be found here and here. Furthermore, with home prices rising so dramatically and mortgage rates rising in an effort to combat record-high inflation, many would-be home buyers are remaining or reentering the rental market. This addition of renters is adding significant competition to the existing pool of rentals already active in the market. The result of these factors is fierce rental competition and skyrocketing rental prices.
Throughout many markets, we are seeing properties rent for 10% or more above list price. In some areas, we are even seeing bidding wars resulting in properties renting for 1.5 times their list price. For some additional tips on how to compete with rental bidding wars, check out the following article titled: “Inside the Wild World or Rental Bidding Wars – and What It Takes To Win”. Although this rental market can be frustrating for renters, the good news is that the tight market is spurring more developers to begin constructing more rental housing. As with any market, it is highly advisable to work with a local and knowledgeable real estate agent. Contact one of our South Florida real estate specialists today!
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. 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. Live South Florida Realty, Inc., has 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!