Spring is almost here, and for people looking for a new rental, they face a competitive market. Asking rent prices in the U.S. have risen to $1,959 in February, according to Zillow Group’s latest Rental Market Report. This is a 3.5% increase from a year ago. The national rental vacancy rate remained flat at 6.6% by the end of the fourth quarter of 2023, according to the Federal Reserve.
In some cities, vacancies have increased due to new builds, while some cities have few open apartments. New York City’s vacancy rate recently hit 1.4%, the lowest level since 1968.
When hunting for a new rental, consumers may come across different types of rental properties, from straightforward rental buildings to properties with specific quirks like condos and housing cooperatives. It’s important to consider the application process, fees, and amenities when looking at a rental property.
Properties like condominiums and co-ops tend to have higher upfront fees compared to traditional rental buildings. Condos and co-ops have their own sets of rules and fees, so it’s important to understand these before committing to a rental agreement.
Condos and co-ops cater primarily to people who want to buy, but these properties may appear in a rental marketplace if the owner decides to rent them out. Condos allow owners more flexibility in renting out their units, while co-ops may have a more intense application process with strict rules.
In traditional rental buildings, tenants have more certainty about how long they can stay. The application process is typically more straightforward, making it easier to understand the upfront costs involved.
Before signing a lease for a condo, co-op, or traditional rental, it’s crucial to understand all the fees, rules, and amenities associated with the property. Each type of rental property has its own set of considerations, so it’s important to do your research before making a decision.
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