Why Do Rental Rates Change? How Can I Get The Best Deal?
Online rental pricing doesn’t always match the price you get when you call or visit, why is that? Rents keep going up, why is that? These are common questions we hear from the prospective tenants we work with.
Why are rental rates always changing?
In the Chicagoland area, many apartment properties are operating at or near fully leased. This means there is a high demand for rentals with very low supply. With a low supply of apartments and a growing demand, rental rates have continued to rise. Management companies are hired to not only manage the property’s day to day needs but to also maximize profits for the owners/investors. Many management companies are using revenue-maximizing technology such as Yeildstar and LRO to make their apartment’s rental rates competitive with the market while also maximizing their profit.
What is Revenue Maximizing Technology?
It’s a tool some management companies use to price each individual rental on their property. There are many factors that contribute to the prices these systems come up with including individual unit upgrades, location on the property, floor level, view, market trends, historical data, number of tours, number of leases, number of units available on the property, etc. Once the best price for an individual unit is reached the lease term options are then determined by the number of leases they have ending each month, current time of year vs when the lease will end.
What can you do to get the best rate?
- Apartment properties will often offer a “look and lease” special. This is a great way to save some money upfront. Look and lease specials are for prospective tenants that apply within either 24 or 48 hours of their tour. Look and Lease Specials often include reduced application fees and administrative fees as well as a sign-on bonus which is basically a credit towards your move-in costs.
- Work with an apartment locator service and visit the properties as soon as possible after receiving your personalized results. The rates and specials can change daily so if you like one of the options we provide please contact the property right away.
- In general, apartment properties offer lower rates at the beginning of each month. This is not a guarantee, however, when the supply of apartments is higher the rates are lower. Many tenants provide their written notice to vacate when they pay their rent. Once the notice is processed and the unit is listed as a future vacancy this immediately increases the supply which will in many cases cause pricing to go down.
- Sign a long term lease. Whenever possible sign the longest term lease offered. The revenue-maximizing technology will often offer lower rates for leases longer than 12 months which is a benefit to both the property and to the tenant. The property doesn’t have to worry about re-renting the unit as soon and you as the tenant get to lock in a lower rate for a longer period of time.
- Figure out what is most important to you! Apartment properties with fewer amenities and/or fewer in-unit upgrades will offer generally offer lower rental rates. Determining what’s most important in your search and communicating that with one of our relocation specialists will help us match you with the best options.