As the downtown condo market bottoms out, many owners are choosing to rent their property instead of settling for less than they consider fair market value in a sale. This trend is both local as well as national. MSNBC features this ARTICLE indicating that rental rates are going up.
I have indicated in previous articles that the demand for living downtown is greater than it has ever been. This has been fueled by many things, not the least of which is lifestyle. Over 600 units should change hands this year, and as that happens, most of those changes will be rentals.
Once again the laws of Supply and Demand take over. I have been working with several renters who initially wanted to negotiate down the price for a rental. What has been happening is that the rentals are being snapped up pretty quickly, creating a demand for the property, and pretty much eliminating any pressure on the owner to consider lowering the price. In each of those instances, my clients have lost out by not committing.
A quick look at YTD rentals of non-traditional rental properties, ie individual owners renting their own property, shows that 174 units have been rented, and the owners received 100% of the asking rental price