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How to Survive a Rental Bidding War

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Q: I recently joined an open house for rent on Park Slope in Brooklyn. The broker has informed the applicant directly in advance by email in advance that it will accept the best and final offer for rent and fees. This was not a luxury apartment. The building was not new and had no facilities. I have offered a list price: $ 6,000 per month, 15% commission. He has already received an offer of $ 6,800 and said he needs to offer more to consider. How should the lessee respond to these tactics?

A: A: An apartment is as valuable as a person is willing to pay for it. Due to the lack of listings and strong demand in this rental market, many future lessors are willing to pay a fair amount. According to May, 18% of all rental properties in New York City were involved in a bidding war. Douglas Elliman Report — Tendency to affect apartments from bottom to top of the market.Long line of Open houses are the norm.. TikTok is full Video posted by Battle-weary Apartment hunters lamenting many of them.

In New York, bid wars are legal for market-priced apartments. However, the landlord cannot accept a few months’ rent in advance. Brokerage fees are also unregulated and are now the responsibility of the tenant after the initial rest of the pandemic where the landlord received the fee. A fee of 15% of the annual rent is the industry standard, but nothing prevents brokers from making further demands. Don’t worryA Douglas Elliman sales representative said he had heard that brokers were getting 18% or 20% commissions. “For now, brokers are too powerful,” he said.

To find an apartment in this market, first determine your maximum budget. Then look at the apartments below that number. You may need to fill in offers to landlords, brokers, or both. How much do you need to provide? Unfortunately, there is no magic number. Brokers report that apartment rents are hundreds to thousands of dollars higher than offered rents. The answer depends on how desperate the other bidders are.

Appears ready to make an offer. Organize all your documents such as pay slips, bank statements, employment certificates, testimonials, etc. If you use a guarantor, be sure to have your financial information ready. And it will appear early.

“First come, first served” Nicole Hector, Corcoran’s Associate Broker. “Do your best. There is a bidding war. Prices will go up.”

Remember that future rent increases will be based on that price, no matter what rent you agree to pay. Therefore, be aware of your current and long-term budgets before signing a rental agreement.

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