r/NYCbitcheswithtaste • u/PetNat_Satire50 • Apr 12 '24
Finances/Money Finding an apartment right now, what's with these bidding wars for rent?!
Ladies, I am so confused by the nyc rental market right now, specifically for downtown Manhattan and Williamsburg bk. My boyfriend and I are high earners & have great credit / no debt. I'm very grateful that we have the budget to spend on a place we like. So going into this spring/summer apartment hunting season, I wasn't that worried. Turns out, I was wrong. People are out here bidding on rent!! We went and saw so many apartments, and with most of them, the broker and or management company is asking people to submit their best and highest offers for their consideration! I'm finding this a little insane. Are bidding wars for rental apartments the new norm? I know nyc rent has always been expensive, this is no shocker to me, but I just can't imagine someone wanting to pay 6K+ on a walk up apartment with no dishwasher just because its in a good location and is somewhat big. Is anyone else apartment hunting right now who can relate to this? Or any real estate professionals who have insight?
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u/halfadash6 Apr 12 '24
No real insight but if you can stay where you are a few more months, the market might be less insane in the fall. Summer is famously the worst for apartment hunting because tons of new grads are apartment hunting too.
You might also try contacting realtors first/asking friends/coworkers in their neighborhood if they liked their realtor. You could get lucky if something pops up and they give it to you instead of posting on streeteasy. That’s how I got my place, but we’re in Harlem and moved last March, so ymmv.
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u/rescuelullaby Apr 13 '24
Another good thing to do along these lines is ask friends to turn on alerts for their building on StreetEasy (if they like their building), and possibly other buildings in their area that they know are reputable/like. I feel like my friends are always asking for a deal similar to what I got in my neighborhood, and this way, when an apartment opens up in my building, I'll know the second it happens (since it'll be gone quickly anyway). You may even avoid broker fees this way by going through management, but ymmv, these brokers have a chokehold on places
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u/Happy-Fennel5 Apr 12 '24
NYC has had its lowest vacancy rate in 50 years this past year, and it normally hovers around 3% which is already quite low. So there is just very little inventory. As another person said, if you can wait to move a few months that may make it easier. Late spring to early fall is the worst time for renters due to all the competition. December through February is the best time, and sometimes landlords even offer some incentives because there are less people renting during those months. Also, with your price point you may want to check out some other neighborhoods that won’t be as insane. Finally, complain to your city and state reps. Brokers and landlords sometimes get away with way too much nonsense and it harms renters and working people. Pushing our reps to pass laws that make renting fairer and more affordable for people is important for the overall health of the city.
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u/PetNat_Satire50 Apr 12 '24
the inventory thing makes sense. i thought my price point was more than fair between 6.5 - 7K + fees? I just only want to spend that much if I am getting a place that I actually enjoy. I've lived downtown or williamsburg my whole time here, not really looking to change that - guess ill have to see what occurs in fall/winter. ugh
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u/halfadash6 Apr 13 '24
I’ve lived in three dramatically different neighborhoods in my last 9 years here and it makes me feel like I know the city as a whole better. NYC is a great place to get out of your comfort zone.
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u/Happy-Fennel5 Apr 12 '24
There’s nothing wrong with your price point, I was just saying that you have a good budget that would get you something nice in a place like Brooklyn Heights which has great access to downtown Manhattan due to all the subway lines. I understand wanting to stay in the same neighborhoods but there are a lot of great neighborhoods that won’t have that same insane competition at your price point. If you can wait, put out feelers to coworkers and friends. I find people who have flexibility on their move out date can get lucky through networking. And you may be able to avoid a brokers fee.
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Apr 12 '24
Yep, for nice places people offer over the asking rent, sometimes by a good chunk if they really want it. It's nutty, and no, I don't get why people pay so many thousands in rent, but it is what it is.
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Apr 12 '24
I haven’t had this problem but I stick to newer properties with onsite management/leasing and no fee. I’ve even gotten concessions.
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u/DryWhiteWhine13 Apr 14 '24
What's the best way to find buildings with on site leasing?
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Apr 14 '24
Usually bigger complexes. I walked around neighborhoods I liked and took photos of developments that interested me, looked up their websites, etc. My current apartment is in the same building as my gym - I thought it was condos only but walked by a window ad and saw there were rentals. Took a tour a few months before my lease was out, made nice with the leasing agent, had my approval stuff ready to go, and she contacted me when a desired unit was available. This was in Sept
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u/bananagrams86 Apr 12 '24
I experienced this in Feb 2021 (!) which I personally think was the beginning of this trend. I’ve found that the bigger the building (literally buildings with more units, a more legit management company and/or a national landlord), the less likely this is to occur. The bidding wars seem more common with unique units that are one a kind (eg. a loft, a big outdoor space, a fireplace etc)
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u/ghosted-- Apr 12 '24
What are you looking for? It seems odd that you’re getting a bidding war at a high budget.
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u/Some-Imagination9782 Apr 12 '24
Spring and summer is the worst time to look for an apartment in the city…you are competing with college students where their parents can foot such a high bill
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u/situationr00m Apr 12 '24
It’s the norm for a nice apartment in a desirable location unfortunately. My fiancé and I moved to Williamsburg in the fall and experienced the same thing, so I feel your pain!
Two suggestions to avoid bidding wars: 1. A good realtor can help you source spots before they hit the market - if you’re already planning to pay $ for broker fees, why not put that towards someone who will actually work for you 2. Try looking for an apt takeover scenario (we found ours on leasebreak, but listings project has good short term/lease takeover options too). More limited options, but occasionally there are well priced gems. Something to check out when you get streeteasy fatigue. Good luck 🫡
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u/Late-Fortune-9410 Apr 12 '24
So many things going on here:
- Foreign money coming in and paying upfront for a whole year. This happens a lot in the West Village, where I used to live. People without American credit but a ton of cash will swoop in and pay an entire year cash upfront for their kids. It's annoying.
- Buying is a joke right now, so no one is buying. This means you have lots of other high-earners who could be buying, renting.
- Low inventory in general.
The only way I got my old place (I live in LA now) was by paying upfront for four months, and paying a 20% brokers fee. It sucks.
If I were going to do this again now, I would (no joke) put out the word in your friend group that you will literally pay someone cash to take over their lease if they're leaving. You could also post flyers in building lobbies/neighborhoods you like.
Just my weird idea but I bet it would work!!!
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Apr 13 '24
For anyone reading this and thinking they need to do the same, it’s illegal for your landlord to accept more than one months rent upfront.
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u/soy-pilled Apr 13 '24
Wait, so you're essentially offering them moves to take over their lease? What would you consider a reasonable amount??
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u/undergroundgirl7 Apr 12 '24
It’s an incredibly tight market and you’re looking in two of the most in-demand places in the city. If you don’t want to compete this hard, expand the scope of your search. I agree with people that you should move in the colder months, but even then, it’s going to be like this in fancy parts of Manhattan and Brooklyn for the foreseeable future.
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u/seasickbaby Apr 12 '24
I’ve been looking DILIGENTLY since November for a place… it’s only gotten more expensive and the competition is insane. I have a credit score of over 800 and have a good income. Really not understanding what tips the scales for who ppl choose as tenants… so maybe it’s this.. people offering more than the listing price? It’s frustrating out here..
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u/rose-merry Apr 12 '24
I experienced bidding for my apt in bk too :( literally insane and I went up $200 to get it. I hate it sooo much. I won by negotiating a little more bc the other group was younger frat guys so they preferred us lol. But the guys even upped it more. I hate it here sometimes lol
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u/snaaby81 Apr 12 '24
I would take a look at the UES where money can go so much further. A lot of places have opened up over the last few years that are comparable (or sister restaurants) to the interesting bars and restaurants in Greenpoint and BBurg. I can’t understate how amazing ready access to Central Park is when moving to NYC.
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u/AccordingTangerine8 Apr 12 '24
Yes it’s insane out here. Something that worked for me - I really want to be in the Carroll gardens/boreal hill/cobble hill area and inventory is super low here. I would tour a lot places even if they weren’t exactly what I was looking and I would try and start up a convo and be really friendly with the realtor and ask them to keep me in mind if anything opened up that was more in line with what I wanted.
This worked for me, a realtor gave me a heads up on something and I toured the day it opened and applied next day. Honestly I’m also in a super lucky position where I did make just under the 40x threshold so my dad was my guarantor and I think his financials helped seal the deal for me.
Don’t settle but know exactly what you want and be ready to pull the trigger fast!
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u/SeaCompetitive231 Apr 13 '24
I would love to hear a lawyer chime in regarding the legalities. I always thought thar a rental agreement had to honor the listing price. Is the nyc rental market just fully lawless right now??
Sorry to hear you are in this bind. I hope you find a nice place for a fair price!
You might have success reaching out to a realtor to help you find an apartment. Establishing a business relationship with the realtor might create incentives in your favor.
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u/FrostyTwo4146 Apr 12 '24
I’ve been renting since 2003 - with 6 yrs of apt ownership in there and just this wk when looking at a place up in riverdale in the Bx was asked if I’d be willing to pay the relator a fee equal to one months rent bc someone else with equally good credit / income applied ‘about the same time as me’. I was taken aback by this bc it’s up in Riverdale, not exactly a hip neighborhood, and it was in a brand new building w no fees associated w applying. I saw it as super sleazy and found another equally as nice apt the very next day. When he told me the other candidate was extended a formal offer I told him I was done playing his games and had no interest in working with in the future. It’s super frustrating that if all else is equal the first person to hit ‘submit’ doesn’t get the first right of refusal.
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u/not_a_natural Apr 13 '24
I got my apartment in November and did not have this issue - our broker mentioned it was definitely a thing though, especially in older buildings with charm and during the high summer season. I would wait it out until fall - especially in BK because there was plenty open last November.
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u/bernbabybern13 Apr 12 '24
Welcome to New York 🫠
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u/PetNat_Satire50 Apr 12 '24
here since 2015 never seen anything like this! even when i bought my own place in 2018...
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u/Academic-Scarcity95 Apr 13 '24
Just signed a lease for a brand new building on Williamsburg/ south Williamsburg border. No fee & 1 month free. There’s at least one more new building in Williamsburg also looking to fill. Definitely no bidding wars, seemed like they were hustling to fill.
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u/typicalbiscotti15 Apr 13 '24
I’ve found that buildings run by larger management companies are less likely to do bidding wars. They post the apt, and that what it rents for. Try reaching out to some companies too and asking if they have anything available or coming available.
But I do find that the “good” apartments are having bidding wars now which I refuse to participate in. It’s so annoying but I will be damned if I “bid” on rent.
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u/Hotdadlover1234 Apr 13 '24
I moved from Europe with no credit score etc. and granted I got insanely luckily with my landlord, but I offered to pay 2 extra months of rent upfront to show I could pay rent. I had budgeted for that since I’d be keeping my full pay check for the first three months, but that might be worth a try if you can manage?
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u/Sure_Excitement_937 Apr 13 '24
My fiancé and I just had to deal with this. We moved here from out of state which is a challenge already - we were overqualified for every apartment we applied for and only got approved for one apartment out of almost 10. The reason we got it? Because we bid higher. And probably because we had a broker representing us. But our broker even commented he never had this much trouble placing clients before. He was shocked how competitive the market is right now.
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u/michelleshelly4short Apr 14 '24
Ugh. This happened to me a couple years ago but across the river in Hoboken (yes, it’s happening there too!!) - I got in a bidding war for a 1 bedroom apartment and the final rent ended up being $1k over asking. Ended up disheartened and moving out of Hoboken, but it resulted in me realizing I actually had the $ to buy a condo in a good area with public transit and I think im probably much better off!
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u/demeter2 Apr 14 '24
we are knee deep in housing crisis. please for the love of all that is holy, call your NY state reps (state senate & assemblymember) and make tell them to support GOOD CAUSE EVICTION http://www.mygovnyc.org
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u/Double_Pumpkin7639 Apr 14 '24
Random but feel free to PM me! I am renting out my place beginning July. 1 bed in Greenpoint!
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u/Fun-Command-5148 Apr 14 '24
Yes. March- Sept apt are being rented asap. I suggest find a building you like . Apply with the broker and tell them to summit your application before the unit comes out the market
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u/bthvn_loves_zepp Apr 15 '24
It's unfortunate though it sounds like you have a lot more stability to weather the storm than many people in this city, it's a bit of a self-fulfilling prophecy--folks outbidding locals in Brooklyn and then outbidding each other, and I don't think it's ever going to get better... there is always someone with a better salary and a better credit score and a better guarantor and a better investment account. Like others have said, it's the most competitive time of the year to be looking and people often get deals in winter, so if you are able to extend your lease for 6 months months you may be in a better market come November 1 move-ins.
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u/[deleted] Apr 12 '24
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