Rental Rates Continue to Rise
According to Gail Marks Jarvis of the Chicago Tribune “The high rate of people staying in their existing apartments, rather than moving, indicates that the market remains healthy for building owners, although painful for renters.” Business 101 teaches us that price is dependent on supply and demand. With more than 50% of current tenants renewing their leases year after year, the after effects of the housing crash and the surge of millennials entering the rental market monthly rent continues to increase 2-5% each year.
A recent Gallup poll of people throughout the country showed renters in every income level are far more worried than homeowners about paying for their housing. Nationally, about 49% of renters are afraid they won’t be able to handle their housing costs. That’s about twice the number of homeowners with concerns. If renters are more concerned about the cost of housing why aren’t they purchasing homes? For some, they simply can’t afford to do so.
Since the housing bubble burst the qualifications to purchase a home are much higher. With rental rates being at an all time high it’s tough for many to come up with a large enough savings to use as a down payment on a home while juggling student loan payments, health insurance costs, and general monthly bills. Others enjoy the freedom of not owning a home, this is especially true for many millennials. After work and on the weekends they enjoy not having the responsibilities of home ownership; i.e mowing the lawn, taking care of weeds, shoveling snow, spreading salt, home repairs, etc. Millennials are also more likely to move out of the area if given the right career opportunity. Breaking a lease usually requires a 30-60 day notice and a 1-2 month fee depending on the landlord and specifically on what the lease states. While breaking a lease can be expensive it is much easier and generally more cost effective compared to selling a home.
How much does it cost to rent in DuPage County, Illinois?
Average Rental Prices for DuPage County Illinois *Source Apartment Solutions market survey October 2016. **There may be apartments that rent lower or higher than the averages listed below.
1 bedroom $875/mo-$1,650/mo
2 bedroom $1,000/mo-$1,900/mo
3 bedroom $1,350-$2,600/mo
Single Family Homes $1,500-$3,000/mo
Do’s and Don’ts of Renting: Money saving tips below!
Don’t Break Your Lease .
(unless absolutely necessary) Moving can be very expensive. The cost to break a lease is usually 1-2 months rent plus a 30-60 day notice. Completing your lease term is the first way to save money when renting while keeping your rental history intact. If you skip out on a lease and don’t give proper notice and pay the necessary fees the landlord will likely go to court for the rent owed plus damages and court fees. Many people are surprised to see a $5,000 judgement on their credit when they only skipped out on a month or two of a lease.
Don’t bounce from apartment to apartment.
Rent from an apartment complex or landlord that you plan to stay with for awhile. You used to be able to move between apartments and sometimes even save money because most properties offered up front concessions. Now that more people are renting specials for the 1st month free are rare and are usually only found in newly constructed high end rental properties. During the slow season which is generally between October and March you may see some additional properties offer some “move in specials” such as $500-$1000 off your move in fees. The selection of apartments available will be less but statistically rents are lower in the slow months.
Pay your rent on time!
Late fees can add up especially if paid month after month. Some landlords will deny an application if during the rental verification they find that rent was late 2 or more times in one year. Other landlords may accept the application with a higher security deposit.
Rent from a reputable landlord.
Especially when renting privately! First, make sure they own the home or townhome you are interested in renting. Next, ask how long they have owned it for and how long they plan to own it for. If you are looking to rent for 2-3 years and the owner plans on selling next Spring it would be good to know up front to avoid unnecessary moving costs. Get a copy of the condo or homeowners association rules and regulations. A landlord might be fine with you having a Rottweiler but the association rules and regulations might limit dogs to a certain weight limit or not allow them at all. Lastly, check with the county to see if the owner has a pending foreclosure or is behind on their taxes both of which are red flags. If it seems too good to be true then it probably is.
Know the market!
We all want granite countertops, new carpet or hardwood floors, new appliances, dishwasher and washer/dryer in unit. If rent continues to go up 2-5% per year and you know that you are going to be renting for a few years before purchasing a home or moving out of the area then don’t start at the top of your budget. Figure out what your must haves are and contact a locator service for their expertise.
Use a Locator Service.
Locator services are staffed with highly trained and licensed leasing agents who know the apartment communities big and small in the area you are looking to live in and what specials they may currently be offering. They can narrow down your search based on many factors such as number of bedrooms, floorplan layout, upgrades, credit requirements, pet restrictions, price, school system, etc. Finding the best complex for your needs will save you money in the future by not having to move year after year. The best part about using a locator service is that they do not charge you a fee, they are paid by the landlords and apartment communities once they secure a lease. Put down the booklet you got on your way out of the grocery store and call a professional.