Rental market has been fragile for a few years now with inventory levels going up and burgeoning neighborhoods adding units attracting a new population of renters. It was really only a matter of time until options were plentiful, rents capped off and the supply outweighed the demand. It’s not like we didn’t see this coming. Top it off with a “black swan” and the proverbial bucket runneth over.
We’re halfway through May and there are plenty of June options out there. Once June 1st hits, what were June options become July options which makes July inventory levels swell. It’s like adding water to an already full pool. It’s manageable for a little while but it’ll eventually overflow.
So here comes the million dollar question- “How do you move inventory?” This is not a one-size fits all strategy. Understanding your demographic, target audience and what’s doin’ in your specific neighborhood will help you understand what you need to do for your apartments.
First off, you’re likely going to need to pay the broker fee. And I would suggest you do it now. It’s my opinion that this will become the “new normal” (how sick are you of hearing that by now?). A few large clients of ours have deployed this strategy back in late March/April with a lot of success. As of right now, renters are seeing SOME inventory as “no fee” and are attracted to it. It’s an incentive right now. Once everyone starts to do it, the “incentive” piece falls off and it starts to become expected. Get in front of this and take advantage of the timing right now- pay the fee and get your apartment rented. Don’t get involved in the race to the bottom. Be forward thinking and ahead of the curve. Those are the people who win.
Cooperating with brokers is essential. While it may be important to have one or two offices be the point person for your inventory, be sure they’re marketing it to a wide audience. If they’re not, they’re doing you a major disservice.
Get creative! Keep rents stable and focus on securing a good tenant and getting the unit occupied. We can help guide you through these times- with a combined 40 years of experience in the local rental game, Kingston Real Estate & Management has all the tools and strategies to help you be successful in what can be stressful times.
See, we don’t get freaked out by these things. We see challenges, get a game plan together and rise to the occasion.
Let’s discuss what we can do to help. How are we different? What are we doing that other people aren’t? What are the advantages to working with Kingston REM & the #KREMCrew? I’m happy to discuss with you anytime either over the phone or by email. I’m easy to reach and always available. 617-308-6338 or [email protected].
