As apartment rentals have slowed across the country, landlords have added “sweeteners” to get more tenants interested in renting their properties.
A CNN report from last week detailed how landlords in some of the nation’s largest metro areas are adding in extras to entice prospective renters – like free parking or discounts on rent.
“They’re throwing in a bunch of deals and perks to sweeten the pot,” Zillow.com senior economist Orphe Divounguy told CNN.
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The outlet reported the number of landowners offering extra perks or discounts has risen as “apartment units are staying on the market for longer. Vacancy rates are rising. And rental growth is slowing.”
Real estate site Zillow recorded that the rate of rental listings offering these sweeteners has gone up nearly 10% in the last year – from 25.4% last July to 33.2% today.
These deals are most prevalent in several major U.S. cities, like Raleigh, Charlotte, Atlanta, Salt Lake City, Nashville, and Austin. Perks are attached to at least 50% or more of the rental listings in each of these cities.
CNN spoke to multiple young renters who said they were awash in promotions and deals when searching for their next place to live. 23-year-old graduate student Natalie Garcia, who lives in Arizona, told the outlet, “Honestly, all of the apartments I was looking at were running promotions.”
She added that she and her boyfriend settled on a one-bedroom apartment in Scottsdale and got their first month of rent half off. “The concession was a bonus,” she said.
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Another young couple in the state reported getting a free month of rent on a two-bedroom apartment after offering to fix a broken fence at the property upon moving in. “We totally lucked out,” 23-year-old Rylee Dunham told CNN, adding, “I think we would have gotten the free month of rent anyway.”
Though these rental perks help out aspiring tenants, shelter costs are still high and rising. The Bureau of Labor Statistics recorded that they’ve jumped 5.1% from last year, though this is a much lower spike than the 22.3% increase that occurred during the pandemic.
CNN noted that that rate of the price increase has lowered due to a “building boom for apartments” that has resulted in a “shift in the balance of power in favor of renters.”
Landlords are having a harder time filling vacancies, which explains the explosion of deals and sweeteners to go with listings.
“By being proactive, informed and realizing their leverage, renters can make the most of the perks landlords are offering,” Divounguy told the outlet.
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