I was anticipating a bit of problem in the local rental market because of all the houses that aren’t selling coming into the rental pool. That has caused a problem, with really nice houses that middle class people can’t afford to buy being rented out at what must be about 1/3 of the mortgage cost.
But apparently, as a separate issue, our local rental market seems to have completely died.
In 2 months, I have gotten 3 applications: one from people with no rental references at all who stated they plan to buy this spring. One from a woman with 3 kids and an income of $200 a month (yes, two hundred, I didn’t forget a zero). One from a couple who have never paid a bill in their lives, including utilties, bottled water, and a collection from a pizza restaurant. Just to make the last better, he is a registered sex offender with 2 sex convictions, two stolen cars, and 8 pages of criminal record for minor things like drunk driving and breaking and entering.
I dropped the rent $50. Then another $50. No difference.
I just called several ads in the newspapr with a $500 range of prices and nobody is getting applications at all. They are getting very few calls from people who are extremely unqualified. If I drop the rent $300, nobody is getting applicants in that price range either.
Most of the calls I get are from people who are moving to the area and planning to buy this spring, so they just need a place for a couple of months. (hey, at least the buyers are appearing again)
Things are suposed to be slow here in the winter, but it’s spring already.
I’ve never seen anything like this. It’s hard to find good tenants, but I normally get dozens of losers trying to rent from me. Even the losers seem to have disappeared.
I’m starting to see ads for very nice houses that say “no credit check”. Well, I suppose those houses will be cheap as fixer-uppers in short order.