PHOENIX. Hearing about the bidding war when it comes to selling homes is not news, but bidding for homes for rent? This is what it has done in Arizona with a hot housing and rental market due to insufficient inventory to meet current demand.
Natasha Smith confronted a real estate company that asked potential tenants to submit their “best and best deal” on how much they could pay for their monthly rent. She offered about $ 2,100, which is $ 700 more than she is currently paying, but still lost to the higher price.
Smith has been trying to find affordable rent for almost three months now. She lived in the current rented house for about seven years.
This is the house in which she raised her children and said goodbye to her late husband. Earlier this year, Smith’s homeowner came to her with tears in his eyes to announce that he had decided to sell the house.
“I can’t blame them. It’s definitely time for them to sell. So I was advised to evict me so they could sell the house, ”Smith said.
For almost three months Natasha had been looking for a house in Gilbert that would match the characteristics of the house from which she was leaving. She currently pays around $ 1,400 for a 2,000-square-foot, three-bedroom home. Most homes that fit this description, which Smith found on the Internet, cost $ 2,000 or more and were quickly rented out.
“It was extremely difficult to find a home that even suited your needs, let alone your budget,” Smith said.
Even so, Smith said she was extremely surprised to see a letter from a real estate company asking her to submit her best deal and bid on the home she wanted to rent. She wrote about this in social networks.
Realtor Jennifer Kovacs saw the message and reached out to Smith to help her find a home.
“When I saw Natasha’s email saying that they want her to perform as best and best as we do in the resale market, it was pretty shocking,” Kovacs said.
She knew Smith from a previous job and did not want her friend to end up on the street unable to find a suitable home, so she offered Smith her services and experience.
ABC15 reached out to 4:10 AM Real Estate and Property Management, the company that wrote an email asking potential tenants to apply to buy a home. Owner Jason Geroux told ABC15 that his company had no plans to put the property up for auction until several tenants contacted them and offered more than that for rent.
“I don’t remember this particular property, so I’ll use prime numbers, but it advertises for $ 2,000 a month. I will give you $ 2,200 if you find my application higher than others, ”explained Jeroux. After speaking with the homeowner, they decided to see how high people would be willing to go for it in order to live in this house.
Jeroux said they plan to use a similar strategy for other hot rental properties in the future at the request of property owners. According to him, the rental market is now as hot as the housing market.
“In fact, even more so. In fact, there is only one rental for every five sales, so the rental inventory is extremely low, ”said Jeroux.
The reason is simple – demand. Senior Housing Analyst Tina Tamboer, with Cromford Report said this was due to the large number of people moving to Arizona and they were people willing and able to pay higher rents. The Cromford Report is an insider’s publication for realtors that shows current home resale trends and market analysis.
“The industries that Phoenix is attracted to are generally higher income industries,” Tamboer said. “They may not like what they can get for $ 2,500 a month, but they can afford it,” she added.
For renters like Smith, this makes it difficult to find affordable housing. “It’s just frustrating when you wait four or five days and get an answer that you didn’t get it,” Smith said.
Realtors say the average rental price in Maricopa County was now around $ 1950. That’s about $ 1,000 more than the average cost of a typical mortgage loan.