rental market

Renting in a Hot Rental Market

June 18, 2013 by khproperties Leave a Comment

Rentals are flying off the shelves.

San Antonio has been experiencing a hot rental market since last year and it doesn’t look like it’s going to let up anytime soon. While the sales of homes have picked up, there are still plenty of renters out there and the inventory of property rental listings goes quickly. Since landlords know they can fill their rentals rather quickly, the application process has tightened and property managers are being more restrictive with their criteria for approval. In order to get the rental you want, you need to prepare yourself, be ready to act fast, and know the common issues property managers are looking for in applications.

Rules of the Rental Road

Prepare now. Gather all the info you’re going to need. Most applications will require your current and previous address, with contact info for your landlord or property manager. Fax numbers and email addresses make the process go much smoother. Same thing goes for employers. When your rental application is run, the property manager will check your rental history and verify your employment. If they have to track down these people, the application process gets slower. Any bottlenecks could cause you to lose the property. Don’t let something so simple cause problems. Also get copies of your drivers license ready (for everyone over the age of 18 that will be living there). Make a couple of copies in case you apply for more than one rental property. If you’re self employed, be prepared with copies of bank statements and tax returns. These will speed up the process greatly.

Money orders or cashier’s checks. Your application fees should be in certified funds. Cash is accepted by some property managers. Property managers can’t accept your personal check with a rental application because they will have to wait for the check to clear before processing the app. Again, anything that slows the process will hurt your chances.

First come, first serve. It’s a fast moving rental market and some properties can wind up with multiple applications. Most property managers run by the rule of “first come, first serve,” but not all do. Be sure your agent hand delivers the application to the office and checks to see if the property is still available. You may have to apply for more than one rental property, so be sure your agent is on top of it. If they’re not, find someone else.

Honesty is the best policy. If you have credit issues or a criminal record, tell the property manager up front. Write up a brief explanation and provide it with your application. Sometimes a simple explanation can help you overcome the obstacles. It’s not the job of the property manager to ask, so tell them upfront and let them decide. The more data you give us, the better we can process your rental application.

Pets. We’ve been seeing a lot of this as an issue. It’s up to the landlord to decide on pet policy, but almost no property manager or landlord will accept what are known as aggressive breeds. While your pit bull or rottweiler may be the sweetest dog on the planet, this is a blanket policy for most. The reason isn’t because they don’t like these dogs, the true reason comes down to insurance. While you maintain renter’s insurance, the homeowner/landlord needs to maintain their own insurance policy and insurers are not willing to take the risk associated with these dogs. If you have one, know in advance you may not find a rental very quickly. Here’s a list of points for Private Dog Training Vs. Group Classes and also on the most common aggressive breed dogs: Pit Bull, Doberman Pinscher, Rottweiler, Akita, Chow-Chow, Presa Canario, Husky, Alaskan Malamute, Russian Shepherds, German Shepherds, Great Danes, St. Bernards, Boxers, and Dalmations – mixes apply too.

Additional Documents. Most property managers will have you fill out and sign some additional forms, typically known as “rental criteria” forms. These forms explain to you what you can expect during the application process and what the property managers are looking for. They also detail why your rental application may be denied. These are important forms, in our office, we will not process an application without them.

Complete package. Every property manager has their own set of rules, but we will not process a rental application until we have the complete package. If anything is missing or we still need more information, the rental is still considered on the market and we will continue accepting applications on the “first come, first serve” basis. Do yourself a favor and follow the tips and advice above and you’ll better prepared to find the rental you want in a hot rental market.

image courtesy of blackTanso

Short Term Rentals

March 22, 2013 by khproperties Leave a Comment

So it seems you’ve found yourself in-between homes or in town for an extended stay or in a new area where you’re hesitant to make a huge housing decision without doing your research and want to know what options you may have for short term housing in San Antonio. Well, my friend, you’ve come to the right place.

With the current rental market in San Antonio exploding, homeowners often feel as if they are in the position of power. This means that they’re looking for higher rents, less concessions to tenants, and the dreaded longer term lease. In addition to that, San Antonio is a military hub, with a huge portion of the city’s tenants here on two year assignments. This means that landlords are accustomed to the longer term leases (12+ months). But that’s not to say that you’re out of luck by any means. Here are a few options to consider:

Extended-Stay Hotels. Many hotel chains have created a new business model designed for business or family travelers staying in one place for weeks or months at a time. Many times these setups are pet friendly, offer complimentary dinner and snacks, contain in-suite kitchenettes, can lower your rate with longer stays, don’t have to charge hotel tax, and even offer true one and two bedroom layouts.
Corporate housing. Check with your employer, or your spouse’s employer to see if they own executive property in San Antonio. Many times large companies will buy homes or condos and furnish them as an investment or perk to its employees who travel. It’s worth checking into, especially if you’re wanting something already furnished and ready to go with minimal hassle.
Talk to an experienced rental agent.
- Many agents know which apartments are willing to accept short term leases. There are high quality apartments out there that will accept leases as short as one month, although most hover in the three to six month range. You’ll pay a higher monthly rate, but it may be worth it for the shorter obligation.
- Good real estate agents know the MLS inventory and they know other agents. These connections are important because good relationships get you more information on upcoming inventory, seller flexibility, and even that little extra push to convince an owner to take rental with terms that they may be hesitant to otherwise consider.
- They can help you with timing. Landlords are more open to short term leases in the slower fall and winter months than in the popular summer or spring months. A three month lease in January puts the property back on the market in the much busier March or April where an owner is less likely to have losses due to a vacancy.
- Need furniture or other amenities? No problem. There are great furniture leasing companies in San Antonio that can provide you with good quality furnishings to go along with your rental. We work a ton with CORT, but check with your agent on available discounts they may be able to secure for you as well.

image courtesy of nan palmero, a local San Antonio resident

How’s the Rental Market in San Antonio?

September 18, 2012 by khproperties Leave a Comment

“How’s the rental market in San Antonio?” I’ve been asked this question numerous times in the past few weeks, and the answer is simple: the rental market in San Antonio is booming.

Homes for rent are being snapped up off the proverbial shelves, and owners of rental properties are often in a newfound position of strength, with higher rental prices and multiple tenants to choose from. By the time you view the home, there might already be multiple applications on it.

Why the rental market boom?

There are several factors:

It’s harder to qualify for a mortgage. Tightened lending regulations over the past few years have made it more and more challenging for homebuyers to qualify for a home loan. And even if they qualified in the past, the added scrutiny in the process can easily push a buyer into the “denied” pile. Even government backed mortgages, specifically FHA loans, have had an increase in costs (minimum downpayment remained steady at 3.5%, but MIP, or Mortgage Insurance Premium nearly doubled this year).
Foreclosures. While San Antonio wasn’t nearly as hard hit as other areas in the country, let’s face it, we still have had an abundance of homes going back to the bank. With foreclosures or short sales on their credit, many more families cannot qualify for a loan. And many sellers (especially those who bought in 2006-2007) who want to sell have seen their home values impacted enough by these foreclosures that they can’t sell without losing money. So, their option is to rent those homes out, or to rent themselves until they can find the right buyer.
Military. San Antonio is a huge military city with bases like Randolph AFB, Ft. Sam Houston, and Lackland AFB. Many military families are stationed in a location for just a few years, so it doesn’t make sense for them to buy (their home won’t have had enough time to build equity and overcome costs of selling).
Relocations are up. With the recession, there was a sharp drop in the number of large corporations paying out relocation fees to bring on new employees or relocate existing ones to other cities. However, as the markets start to come out of this slump, we’re seeing more and more companies jump back in. Many individuals relocating to a new city for work want to take some time to get the lay of the land and become more familiar with the city they’re moving to before investing a ton of money in a house. So they rent for a year, or even two, and then decide where to go from there.
Elections. Election season is always a funny time in real estate. The purchase of a home is often the largest financial investment most people will make. Elections bring out a sense of uncertainty: Who will be in power next? And what does that mean for me? For my job? For my tax status? All questions that leave potential home buyers stationed firmly on the fence. But they still have a place to live, and paying $1,500/month is far better in many people’s eyes than losing thousands on a bad investment or foreclosure down the road.

What does this mean for renters?

In a nutshell – higher prices and more competition. If you’re looking for a property to rent, make sure you are prepared to act quickly, and that you have all of your documents – application, proof of income, etc. – in a row early. If your credit is shaky, be prepared to put up an extra deposit. The more flexible and reasonable you can be, the better your odds of finding the right place for you and your family.

image courtesy of busbeytheelder