September 1, 2014 has come and gone. Unfortunately for them, many landlords still have vacant units. The real time apartment vacancy rate as of September 3, 2014 is 3.9%. Last year around this time, we released a 3.4% vacancy rate on August 25, 2013. The difference is staggering. There are over 2,800 available apartment units in the BostonPads industry leading database, covering MA and Greater Boston. This database continuously grows and gathers data via its network of over 90 websites. The 3.9% is based on an extensive analysis of over 72,193 apartments. This number does not include approximately 50,000 luxury units (grand total of 122,193+ apartments in the BostonPads Database!) for data accuracy purposes.
In 2012 and 2013, we saw the Greater Boston apartment market tighten down and the vacancy rate plummet. Finally we have seen it start to turn around and rise again. What does this mean for the market? Some landlords are worried. While massive management companies may not feel the impact of a couple vacant apartments, a small landlord sure will. This number of 3.9% sure is higher than anyone would have predicted 6 months ago. When BostonPads did its last study, it found that the availability rate at the beginning of August 2014 was 5.1%. 3.9% rises above the expected range and there are multiple conflicting theories for this greater than expected average. It will be interesting to note if this trend continues upwards. For people who have somehow not found a place yet, there are still a surprisingly good amount of viable options. September will most likely be a very strong month for rentals due to the fact that many quality apartments will be available throughout the Greater Boston Area. We are predicting one of the strongest falls the Boston real estate market has ever seen.
Help! I am looking for an apartment still! What does this mean?
There is significantly more inventory in the Greater Boston region than last year at this time. More inventory = more negotiating power to the consumer. Plenty of landlords are nervous that they have gone vacant and will be open to cutting deals. Maybe they drop last month’s rent or pay part of the broker fee. The ball is in your court much more than you have seen recently. Customers should seek reputable real estate companies that provide them with the most possible viewings of different apartments so that the best choices can be made in the shortest period of time possible. Think about it, If you are still looking for a Boston apartment, why would you work with an agency that showed you less than 5 listings right now? With a 3.9% vacancy rate, unless you have unreasonable criteria, you should be seeing plenty of apartments!
Qualified real estate professionals at Boardwalk Properties (located at 1518 Tremont Street and 183 Harvard Ave), NextGen Realty (located at 1243 Commonwealth Avenue) and Jacob Realty (located at 279 Newbury Street Suite 200) specialize in all areas throughout the Greater Boston Area as well as MA. Real Estate Agents found on the Bostonpads.com utilize its industry leading database and are able to provide landlords and customers with the widest range of information on pricing real estate and providing housing options throughout MA. If a customer visits the Bostonpads.com website today, they will notice that prices are significantly lower than they were a few weeks ago. This is primarily because landlords do not want vacancies going into the fall and winter. It is also important to work with licensed real estate agent that will familiarize you with the nuances and subtle differences of surrounding areas of Boston. Qualified licensed agents have a vast understanding of the different areas of Massachusetts and will help guide clients in the right direction to match their needs. To find a qualified real estate agent at one of the companies listed above, visitwww.bostonpads.com
What does this mean for landlords?
For landlords that have an apartment still available for Sept 1st, it is time to work with qualified real estate professionals to get the best feedback and pricing options. Whoever you have worked with (if anyone) so far clearly didn’t get the job done. It may be time to readjust thinking about how strong the rental market has been this year. It might be time to be realistic and acknowledge that there is a reason a property did not rent. If the agency you worked with told you to lower your price and you didn’t, whose fault is that? Qualified agents like those found on www.bostonpads.com know and study the market regularly to best service their clients.
Maybe now is the perfect time for upgrades and renovations. It is important to talk with licensed real estate agents to see what is trending out there in terms of top rents and what other landlords have created in their properties that are getting them rented. Whatever the reason is, it may be a good time to drop last month’s rent until the time comes or start offering other incentives. Many groups are still looking for high quality units, and a new kitchen and bathroom with newly sanded hardwood floors could be very appealing for those looking to live in a more updated apartment.
It is early September, the available pool of people looking to move in Boston dramatically dwindles going into the Fall and Winter. Are you serious about getting your place rented before January? If so, you should listen to feedback from real estate professionals and potential tenants. If you notice both real estate professionals and groups viewing his place recommend certain improvements, you should take note. You should also consider stopping by leading real estate offices that have lots of pictures, videos and virtual tours of apartments in their database so that you can compare their product to others in the marketplace. Professional apartment leasing offices should be able to provide you with rental comparative market rates.
Obviously the last thing you want as a landlord is to go vacant. It is now time to come to terms with the fact that your property may not rent for what it’s worth. There was too much competition this year, and you got undercut. There could be a lot of reasons your apartment rented, but you need to adapt and make moves to cut your losses. Negotiate and take offers. Call your real estate agent daily to see what is going on. What price range are people looking for? What time should you start next year? Maximum rents are a result of maximum strategies. Qualified BostonPads agents can provide you with both.
BostonPads is the largest real time apartment database in MA with over 122,193 apartment listings and more than 15,012 landlords in the Greater Boston Area. BostonPads works with the most number of landlords in the Boston Massachusetts area. To learn more about the Boston real estate market, explore investment opportunities, check available listings, or get in touch with a qualified agent, visit www.bostonpads.com.