What to Expect in NYC’s Spring & Summer Rental Market, and How to Be Prepared
Summer Cycles vs. Winter Cycles: Learning the Difference
While it is considered by some to be the greatest city in the world, NYC is also infamous for its exorbitant rental prices, high apartment demand, high broker fees and quick apartment turnover. If you didn’t know NYC rentals moved fast, you quickly learn the hard way during your first move.
To get a full picture of where the rental market is headed this Spring, it’s first important to understand the difference between “The Summer Cycle” and “The Winter Cycle” when it comes renting an apartment. Historically, a majority of people move to NYC during the Spring and Summer months (April-August). During these months, designated by some as “The Summer Cycle”, renters typically face higher competition, and therefore, higher apartment prices and broker fees compared to those who moved during the Winter. This time of year can also leave many renters confused and frustrated, as apartments fly off the market.
When it comes to moving into or throughout the city, trying to get on the Winter Cycle is ideal. Winter rentals are often slightly cheaper than their Summer counterparts, and if you plan to stay in NYC long-term, this can make a big difference (most leases are 12 months, so getting trapped in “The Summer Cycle” is common). Those few renters who are able to get their leases to end in Winter often face an easier, cheaper rental experience year by year, but keep in mind, landlords also know this and may offer you 16 month leases if you rent during the Winter.
Summary (Tl;dr):
Winter Cycle: Less demand, less competition, more bargaining power, less stress, lower broker fees, better deals (October-March)
Summer Cycle: More demand, more competition, less bargaining power, more stress, higher broker fees, worse deals (April-September)
Obstacles renters are facing right now and how we can help.
As mentioned, there are many obstacles that renters may face when searching for an apartment in NYC, especially during the Summer when apartment demand is high. The process of moving is stressful in and of itself, and in NYC’s market, stress and confusion for renters seems to be the norm, especially for first time renters. It seems everyone knows someone who has had a nightmare rental experience. ApartmentsTogetherNYC aims to finally address these problems.
1. Lines for an apartment tours are out the door.
If you’ve ever attended an open house during the Summer, you probably remember it as miserable. Chances are you had to wait in a long line, and boy, was it HOT! During the Summer, you will find busy open houses and bidding wars are common. This is a result of both the increased apartment demand, as well as the calculated choice made by the real estate agent/broker who is advertising the listing.
Setting open houses for apartment tours is a common practice for a number of reasons:
1. It is most convenient for the real estate agent/broker. They set a designated time to be at the building and then simply let the interested renters come by during this time.
2. Open houses emphasize the demand for the unit. Seeing all the other renters in one place at one time adds a ton of pressure to move quickly, which is what the broker/agents want.
3. Having a long line forces renters to move through the unit quickly, and having a packed apartment makes asking the broker any important questions difficult. This makes doing your due diligence nearly impossible; if an apartment has issues, you’ll probably miss them. For the Broker, open houses are typically a win/win. For you, it’s usually hectic, disorienting and often a big waste of time.
How We Help
ApartmentsTogetherNYC aims to empower and educate renters so they can confidently navigate NYC’s rental market. First step is helping our clients understand their apartment options. By providing our clients with ANY and ALL relevant information about ANY apartment listing online, we can ensure that time and energy aren’t wasted touring listings that have issues or aren’t even still available. We can also provide tenant complaints, building violations, landlord reviews, pest and noise complaints, apartment value compared to market averages, and (almost) anything else you may want to know.
In a lot of instances, this information may make or break your decision. Wouldn’t it be nice to know that apartment is right above that noisy bar BEFORE you spend your day going to tour it? Wouldn’t it be nice to know about a building’s notorious mouse problem BEFORE you move in? Wouldn’t it be nice to know that you’re actually getting a good deal and not overpaying? We think so.
At ApartmentsTogetherNYC, we know that in NYC’s past paced rental market, knowledge is power. By getting our clients organized and prepared, as well as helping them evaluate their options beforehand, we ensure our clients can maintain a competitive advantage over other renters. Furthermore, Our clients can also rest assured that when it comes to their apartment, they are not wasting time and not getting taken advantage of by NYC brokers & landlords.
Lastly, if you’d like a trusted expert to provide a full walkthrough of an apartment, we can also attend tours for you (and send a video) or with you (in person or via video conferencing).
2. “The broker’s fee is too high”
The NYC rental market is quite the monster and you’ll notice quickly how these problems all feed into each other, especially with the increase in demand that occurs during the Summer. Typically, this increase in apartment demand allows a broker to charge higher fees (and sometimes, renters will be forced into bidding wars which include offering higher fees). While some brokers may offer to work for you, because broker fees are also based on the monthly rent, this misalignment of interest becomes apparent: when you pay more, they make more.
Since broker fees can typically get as high as 15% of the yearly rent, avoiding bidding wars, knowing whether or not you have to pay a broker’s fee, and whether there’s room for negotiation is incredibly valuable information.
How We Help
As mentioned, ApartmentsTogetherNYC equips renters with the information about listings they’ll need to confidently make their apartment decision. With the information provided by ApartmentsTogether, clients can rest assured they are getting good value, and even try to negotiate down the rent or the brokers fee. In some instances, clients can avoid a broker’s fee altogether. By analyzing current market trends and using our expertise, ApartmentsTogetherNYC sets your expectations and arms you with the information you need regarding your apartment options with no misalignment of interest.
Plus, with so many other renters competing for the apartments you want, being prepared and organized is essential, and will give you the leg up you need to get approved at the best price possible.
3. “The listing doesn’t look like the photos”
Bait and switch listings are all too common in NYC’s rental market. Did you know that 1 in 3 NYC rental listings you see online are fake or inaccurate. This results in clients oftentimes, taking time out of their busy days to research and view listings, only to find that the listing was already rented, or that the listing looks nothing like the photos posted online. With an emphasis on getting the maximum number of deals done, some agents may post fake listings in an attempt to get as many renters in the door as possible. This may be a good trick for them, but it is NOT good for renters whose time is valuable.
How We Help
With fake listings everywhere, navigating NYC’s online listing services is a full time job. By helping our clients avoid fake listings, ApartmentsTogether saves clients a ton of time. are great for renters who are trying to avoid fake or inaccurate listings. With our team of rental experts, we can identify key indicators in ads, such as virtual staging, which may indicate a misrepresentation of actual apartment proportions.
Conclusion
The NYC rental market can be a scary place, and really is its own monster. Renters may spend weeks or even months scouring online resources and trying to figure out what’s legit. Even then, doing your due diligence is tough and time consuming Let us do it for you.
At ApartmentsTogether, we know rentals aren’t cheap, so to avoid a bad situation, renters need to be educated, prepared and organized. In the past, renters had to rely on themselves or brokers to get an apartment. This often resulted in confusion, conflict of interest and renters getting taken advantage of. By arming renters with all the information they need, without charging a brokers fee, we aim to save you time, stress and money. We aim to change the way you rent in NYC. Sign Up soon, our Spring Waitlist is filling up fast! You can also learn more at www.ApartmentsTogetherNYC.com.
