Learning the best ways to find an apartment in a competitive rental market can save you time and money. Use our tips to make your search easier.
Finding an apartment when everyone else seems to be looking for one, too, can test anyone’s optimism. Knowing how to find an apartment for rent quickly and with the least hassle can put you back in the positive zone so you can shift your energy from hunting for a home to moving into one. Below are 11 tips on how to get an edge on finding apartments, along with some expert insights to help you gauge when your landlord or property manager might be open to negotiation.
What makes the rental market so hot right now?
Competition for rentals has a big impact on the rent you pay, and rents likely change as demand changes.
According to Zillow senior economist Jeff Tucker, large numbers of people began moving in late 2021 as the economy began to reopen after nearly two years. Rental vacancies hit a 40-year low, giving landlords a lot of leverage to set rents.
By early 2022, the typical U.S. rent was up 17% in a year — a new record. Rents became so high that demand for rentals began to drop since people either didn’t want to move or couldn’t afford the higher rents. The drop in demand helped cool down prices and rebalance the market, Tucker said. By mid-year, more units became available and the rate of rent increases slowed way down.
Still, rent prices haven’t declined by any meaningful measure. One reason they haven’t declined, said Tucker, is that there is still demand from two large groups: older renters looking for a spare bedroom for a home office, and younger renters looking for their own place after bunking with roommates.
“Multiply those changes by even a portion of the millions of renters who move each year, and you get a sizable surge in overall demand,’’ he said.
One final factor is the number of people who have postponed their plans to buy a home due to high home prices and rising mortgage interest rates over the summer. Some of those would-be buyers are staying in the rental market. More renters postponing or steering clear of buying is likely to lead to fewer rental vacancies. Tucker said the low vacancy rate gives landlords leverage to raise rents.
Apartment-hunting tips for a hot market
1. Determine your maximum rent and stick to it (or under it) as closely as possible.
Experts say a home is generally considered affordable if it takes up no more than 30% of your monthly income. Don’t waste time and application money on apartments that will leave you with little cash for fun, savings and other expenses.
2. Stand out from the pack by being prepared.
Landlords often use credit scores when qualifying potential tenants so make sure yours is in good shape. A few months before you move, consider checking your credit score with all three credit agencies, correct any errors and consider not racking up large amounts of credit debt or making a large purchase before you find a place. Line up references and collect paperwork that shows you have the income to pay the rent they’re asking.
3. Make a wish list and start looking about four months before your move date.
Focus on apartments that come up in the first half of the month since that is when you are likely to have the most to choose from. The end of the month is likely to be the most competitive.
4. Focus your search about two months before your move date.
If the cost of rent is your primary concern, focus on neighborhoods that have the largest share of units in your price range. (We show you how to do that below.) If you want to be near certain amenities or live near your friends, focus on those areas.
5. Let friends, co-workers and family know you’re looking for a place.
The rental market is in a constant state of churn. The people in your networks may know of units opening in their buildings or know someone who is moving out. You could nab a place before it even hits the market. Consider posting in Facebook or Nextdoor groups for the neighborhoods you’re interested in to ask about any rentals coming on the market.
6. Set reasonable expectations for the locations you’re searching in.
Use Zillow’s Rental Market Trends tool to see the number of available rentals and their price range in any given zip code or metro area. Search for rentals based on the number of bedrooms they have, and compare rents and availability in two different areas. The tool also will tell you the median rent in the area you’re searching.
7. Search just outside your preferred area.
If your market is super competitive, try searching on the periphery of your preferred neighborhood to see if you can find a better deal while still being in proximity to your desired location.
8. Use filters and alerts.
Internet sources, including the Zillow app, can alert you to new listings that match your home preferences in your preferred area. Use search filters to narrow your choices by price, home type, bed and bath preferences, pet requirements, laundry access and other amenities. Listing tools like floor plans and 3D tours can also help refine your search and focus your in-person visits to apartments that have the most appeal for you.
9. Walk the neighborhood(s) where you want to live and check local sources of listings.
Owners of small buildings sometimes hang “for rent” signs or post notices in local coffee shops to attract people already living in the neighborhood.
10. Take the temperature of the market.
You don’t need to be an economics expert to understand when conditions lend themselves to getting a better deal by negotiating. Zillow’s Rental Market Trends will let you know whether the area you’re looking in is hot, warm or cold.
11. Consider negotiating lease terms and conditions.
In a hot market, negotiating the terms and conditions of a lease might seem like a waste of time. It’s not. Property owners manage complex businesses. Finding stable, reliable tenants takes time and effort. If you fit the bill, you might consider the following:
Offer to sign a longer lease. If you plan to stay for two or three years, offer to sign a longer-term lease. You could stand out as an applicant while also locking in your rent for several years.
Offer flexibility. If you have the flexibility to move in quickly or on a timeline that is convenient for the landlord, mentioning that could also lead to a potential discount or give you a leg up in the screening process.
Ask about rent concessions. If lower rent is not an option, a landlord may be open to discussing other perks and amenities that can save you money. For instance, consider asking for lower pet or gym fees or free parking.