Archive for January, 2009

Will 2009 Be “The Year of the Tenant?” via the Village Voice

According to the Runnin’ Scared blog that covers national and local political news, City Assembly controller Sheldon Silver is the man who has made this lofty proclamation. Find out why by reading the article HERE.

East Village Dream Available…Email for Details (Address on the Sidebar to Your Right)

bright-east-village-living-room

Struggling Sales Brokers Suddenly “Not Too Proud for Rentals”

This article in The Real Deal covers the recent trend of  brokers who have previously only dealt with sales transactions now trying to incorporate more rentals into their business. When times were good in the sales market the rental market was neglected by many agents, but as both sales volume and home prices fall within the five boroughs and commissions are harder to come by, the previously-maligned rental side of the business is looking increasingly attractive. There seems to be a perception that working in rentals is easy and quick money and that an agent who is experienced in sales will easily turn a profit in the rental market with a bit of training, when nothing could be further from the truth. Continue reading ‘Struggling Sales Brokers Suddenly “Not Too Proud for Rentals”’

Rental Q&A via the NY Times

“Seeking to inherit Rent-Controlled Status”

“Leasing a home with a right to buy it”

“The lingering matter of a security deposit”

“When other units rent for less”

“Is a landlord responsible for losses in a burglary?”

“Who can pay for a rent-controled apartment?

Citi Habitats Releases December Rental Market Report

Average rents are up slightly in every single category. This is crazy to me: how can vacancies have risen as prices also rise? What about supply and demand? Some neighborhoods have seen quite a drop-off in prices, the LES and UES both saw fairly steep declines in the studio category but prices rose for one bedroom apartments, and overall studios were a weak category. Perhaps people are moving in with roommates rather than living alone? Soho and TriBeCa are now the most expensive neighborhoods, with the highest prices in all categories and the lowest vacancy rate. In contrast to the West Village, which seems to be declining in value somewhat.

A possible explanation for these price increases could be the impact that landlord incentives are having on the market. Many prospective tenants are going no fee and wind up paying a higher rent rather than a broker’s fee upfront. With the no fee option, rent for a specific apartment may be slightly higher (between 3-10%) and the cost of a broker’s fee is amortized over the life of the lease. Additionally, with many of the larger management companies offering one or two month’s free rent to entice potential tenants, on the books their rents are higher than the net monthly cost to the tenant.  Citi Habitats calculates these averages based on the amounts for which apartments actually rented and does not include the impact of any landlord-offered incentives on the net rent, thus accounting for the rise in recorded prices. If one takes landlord incentives into account there may actually be a decline in monthly net rents on a one or two year lease.

average-manhattan-rent-summary-december-2008

Citi Habitats December Market Report: Vacancy Rates by Neighborhood

This is one of my favorite parts of the market report–the breakdown by neighborhood. The big surprise is that the West Village now has one of the highest vacancy rates at 2.42% (up from .49% in August!) and the only neighborhood below 2% is Soho/TriBeCa.

manhattan-rental-vacancy-by-neighborhood-december-20081

Manhattan Vacancy Rates Continue to Rise

In October I wondered how fast it would take us to breeze past the 2% vacancy rate. Well, less than 2 months apparently, citywide vacancy is at 2.24% and set to rise. Think we’ll see 3% in another  month?

manhattan-rental-vacancy-rates-december-2008


About Me

Michelle Erfer is a licensed Real Estate Salesperson in New York City.
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