NYC Landlords: Doubling Down, Don't Do It.

During these Covid times, I have encountered countless landlords who are still thinking this is 2019. It ain't. The market is flooded with all kinds of rentals, many of them offering deep discounts, up to three months free and also paying the broker fee on a twelve month lease!

There is a saying that some of us NYC real estate agents joke about when negotiating with a landlord: "I can do the deal now at a lower price and then you can be mad at me in six months when the market goes back up, or we can try to get the deal done at a higher price, and you can get mad at me when it doesn't rent for the next six months."

Some landlords, but not all, rather have a lower rent NOW, than NO rent for the next six to twelve months. I research pricing every day and can tell you that the rental market has stayed just about the same since Q2. (see below) That said, the election will probably have another impact on pricing and another pricing litmus test will be in order. Here is a snapshot from the Modern Spaces Q3 report that highlights these price movements on rentals between Q2 - Q3.

Prices may actually start coming back, but let's not forget, we are in the waning rental season now as winter approaches and COVID numbers are up again! This will most likely make it more difficult to rent into next spring at the earliest.

This stark view is even more so in the condo rental market, where amenities are fewer, and some/most condo owners do not understand the pricing competition that has been created by a sluggish rental season with high supply and deeply discounted deals to be had. One of my fellow agents not only has asked the landlord to pay the broker fee, but to also offer one or two months free just like the luxury buildings do.

Yes, these are hard times for landlords/agents and the rental market. A long view of how to mitigate short term losses by offering lower prices and with more incentives for long term gains would appear to be a the strategy of choice!

"Damned If I DO, Damned If I DON'T"

This is a phrase that real estate agents often live by. If an agent is honest and straight forward with their landlords or sellers from the start, he/she often will lose the listing before one secures it, or at minimum, start off on shaky ground.

Truth be told, in good markets and bad, landlords and sellers often have unrealistic expectations for what their property is worth or what they can rent it for.

On the contrary, if an agent acts as a simple "yes man" for their seller or landlord, the listing usually sits and goes cold after a few weeks. Again, the landlord or seller tends to get impatient and the business relationship can quickly go south.

All said, what do I do to help minimize these outcomes? Number one, I always act in good faith with my clients. It always pays to take the high road and provide the best information available. However, it pays to be a bit of a psychologist as well. As my sales manager often reminds me, "All clients are different, one has to adapt."

I agree with this perspective 100%. A good agent is able to observe the situation and act accordingly. Every individual has a different threshold for new information, and chances are, if this information is unfavorable, the recipient will act negatively towards it and you.

Therefore, I try to balance the bad news with a lot of reliable data. I take the extra steps to provide my clients with real time, up to date, rental and sales data that they can easily understand and digest. Sometimes, that's not enough, and I have to wait for another opportunity to share information.

Lastly, there may be a time when the business relationship just doesn't work and it's better to walking away. As in other aspects in life, some relationships just don't work out and one is better served by going in a different direction.

At the end of the day, I want to get the deal done in the most professional manner possible, for all parties involved. I view every situation as a learning experience that I can take to the next transaction, "DAMNED IF I DO, DAMNED IF I DON'T!"

Have a great weekend!

NYC RENTAL MARKET - Renovations and Upgrades MATTER!

During these strange COVID times, the NYC real estate market has become flooded with empty apartments due to people leaving the city and an excess of new development rentals. As a result, there is a huge supply of rentals and not so much demand in the RENTAL market right now. Also, new development apartments are, well NEW!! Not only do they have amenities such as a full service front desk, gym, and outdoor leisure areas, but also the apartments are newly updated with washer and dryers, dishwashers, and other upgrades. As we all know, an in-unit washer and dryer can change one's life! It can also weigh heavily on one's decision whether to take an apartment or not!

The upfront costs to upgrade your apartment may seem excessive at first, but from my experience as a NYC real estate agent, one who is out there every day pounding the pavement, these renovations/additions matter! They can be the difference between finding a good paying tenant or having a vacant apartment for months on end.

Please contact me at 917.613.8135 for a free walk through consultation. Stay safe!