Summer is over here in Austin Texas and all the students are finally settled. Apartment prices have been and always will be as high as they are all year long during June, July and August. This summer and last summer have been somewhat of a shock to renters that have not moved in the past two or three years. With a massive onslaught of people moving into the Austin area apartment prices have skyrocketed and renters just havent been expecting the dramatically increased rates that renters are seeing now. With a shortage of apartments and an overage of people relocating to the area apartment communities have kept their rates as high as possible and have maintained occupancy levels in the nineties for most of the summer. High occupancy levels and low availability have allowed for these communities to make a killing of all the new residents moving here that are seeking rentals or students here to attend UT. However with the massive onslaught of relocating residents have come many new apartment communities creating a market of competing apartment communities. Fall is here and new notices to vacate have flooded apartment community offices dropping occupancy levels in the nineties maintained by the summer months and shortage of available units across the city back down to the 70% and 80% occupancy levels. Now the apartment communities need new residents again. This happens every year, but this year the falling prices are historic. Rates are dropping faster everyday. With over 90 new apartment communities being built and over 20 having opened between July and August there are a plethera of new communities in the midst of a process referred to as a "Lease up" a lease up is a term used to fill up an apartment community once it is out of the construction phase and at a point where they are allowing residents to move in. A lease up is a great opportunity to get a rate well under the market and move into a brand new apartment community. For example the average rental rate 5 years ago for a Class A property in Northwest austin was between 5-$600 a month for around 700sf. Now the average rate is 7-$900 for the same units that mind you have also gained 5 years in age as the prices have increased. However during a lease up the consumer typically saves with an upfront concession. A concession is what the apartment communitites are offering new residents as an incentive to move in ie; 1 month free etc. Right now for example I have several clients whom of which rented a year or two or three years ago in the $550 -$650 range that have been hit with rent increases of up to $200. They now are seeking better apartments for cheaper. The best way to accomplish that is to look for an upfront concession that will bring the rent back down. For instance there is a Brand New apartment community in Northwest Austin, their rates start at $765 for 680sf which is not that great of a deal even though the apartments are Brand New and gorgeous. In leasing the consumer should look to be under a dollar per square foot unless leasing at an exlusive luxury community or at a community with a premium location or both. Tat same community however is offering 2 months free that will be put into the computer system as a credit. The credit comes out to $1530 and can be used however the resident wants $1 this month $1529 the next etc. The terms are that the resident sign a 14 month lease and decide within 24 hrs. which is referred to as a look and lease special ( a special offer only good for 24 hrs). Thus allowing a client that has only upwards of $500-$650 to spend monthly to rent an apartment that appears to be far outside of their pricerange for a rate that they can deal with financially. You would take the credit of $1530 and divide it by the lease term = $109.28 that is your average monthly concession. Then you take the $109.28 and subtract it from the rent amount bringing the average monthly rent down to $655.72!! Thus proving that up front numbers can startle a new renter however you should never let upfront numbers scare you away from a good deal. More importantly you should always seek the help and guidance of a Real Estate Agent or Realtor. All procurement of Real Estate transactions in Texas are 100% FREE in Texas with the exception of sellers who will pay commisions. Please feel free to contact us with your questions on the Leasing market in Austin Texas by visiting our website Austin Apartment Guy Nowadays in Austin if a renter is looking for something new within the $500-$700 pricerange they are typically out of luck but with the right representaion anything can be done!!
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Article added to SearchWarp.com on Monday, September 22, 2008 View other articles written by Michael Humphreys(2)
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