Q: Why did the rent change on the apartment I looked at last week?
A: In managed apartments, rent prices change frequently — even daily in some DC apartment buildings. Many companies use software that looks at a variety of factors each day to determine the rent price for a specific unit. Even though their algorithms are complex, pricing primarily boils down to the buildings’ vacancy rate. A 95 percent occupancy rate is considered efficient in multifamily buildings, and if the occupancy rate is above 95 percent, you will likely pay a premium for a unit in that building.
Tip: When touring an apartment building, ask about their vacancy rate. If less than 5 percent of their units are vacant, you may want to check out buildings nearby for better deals. Also, if you find a place you like at a price you can afford, you may want to lock it in at that price. Ask what you need to do in order to hold a unit.
Q: When are apartments the cheapest?
A: The rental market is always competitive in DC, but we do see a slight lull in demand during the winter months. With that decrease in demand comes slightly lower prices and increased negotiation power for apartments that have been sitting vacant. Conversely, the summer months are the busiest time because of students moving in and out of the area, and recent grads starting new jobs. Also, in election years, there is a shift in the late fall and early winter. However DC generally has a constant influx of people throughout the year and is more resilient to dramatic seasonal changes in rents.
Bottom line: Renters may have a slight advantage in winter months, but pricing remains relatively stable throughout the year. There are also deals to be had in new buildings trying to fill their units.
Q: Any tips on how to find the best deals?
A: Obviously, working with an agent is going to help you save time. They know the buildings, neighborhoods, and pricing best. Also, when working with agents that specialize in rentals, they often get “Hot Sheets” from the buildings weekly, so they know where the deals are. If you maintain a relationship with an agent, they can keep their eyes and ears open for you and let you know if something good comes up.
Also, looking into privately-owned units, you may be able to score a deal. With privately-owned units, pricing is based more on comps in the area, and their expenses, so you likely have more room to negotiate.
Tip: Get help from an expert! And, if you are working with a private landlord, you may be able to negotiate price, get them to throw in parking, or make some small upgrades to the unit prior to move in.
Q: What does it cost to work with a real estate agent?
A: In the DC area, it should be FREE. In some cities like New York, the renter often pays the agent fee, but typically here the agents get paid by the landlords. If you come across a company or agent that wants to charge you a fee, shop around.
Note: Because these brokerages and finder services do get paid by the landlord, it means they only work with specific properties. It also means they only get paid if you rent at a property they showed or referred. If you have a specific property you want to look at and the agent explains they do not work with that property, ask them if they have anything similar they could show you.
Looking for a rental, and still have more questions? Contact an agent for more assistance.
