PHOENIX – We have heard of a bidding war over houses for sale, but bidding on houses for rent ?? This is what is happening in Arizona with a booming housing and rental market, with insufficient inventory to meet current demand.
Natasha Smith met with a real estate company that asked potential tenants to submit their “best and highest bid” of what they could pay for monthly rent. She bid about $ 2,100, which is $ 700 more than she is currently paying, but still lost to a higher bidder.
Smith has been struggling to find an affordable rental for almost three months now. She has lived in her current rental home for approximately seven years.
This is the house where she raised her children and said goodbye to her late husband. Earlier this year, Smith’s owner came to see her with tears in his eyes to let her know he had decided to sell the house.
“I can’t blame them. It’s definitely time to sell, for them. So I was told that I would need to move out so they can sell the house,” Smith said.
For nearly three months now, Natasha had been looking for a house in Gilbert that would meet the specifications of the house she was leaving. She currently pays about $ 1,400 for a 3-bedroom, 2,000-square-foot home. Most of the homes that matched this description Smith found online cost $ 2,000 and up, and they got rented quickly.
“It’s been extremely difficult trying to find a home that even meets your needs, let alone your budget,” Smith said.
Even with that, Smith said she was extremely surprised to see an email from a real estate company asking her to submit her best bid and bid on a house she wanted to rent. She spoke about it on social media.
Real estate agent Jennifer Kovach saw the message and contacted Smith to help him find a home.
“When I saw Natasha’s email saying they wanted her to somehow do the best and the best like we do in the resale market, it was quite shocking,” said Kovach.
She knew Smith from a previous job and didn’t want to see a friend end up on the street unable to find the right home, so she offered her services and expertise to Smith.
ABC15 contacted 4:10 Real Estate and Property Management, the company behind the email asking potential tenants to bid on a home. Owner Jason Geroux told ABC15 his company had no plans to list the property for sale, until several tenants contacted them, offering more than the listed price, for rent.
“I don’t remember this particular property so I’ll use easy numbers, but it’s advertised for $ 2,000 per month. I’ll give you $ 2,200 if you can consider my demand higher than the others,” explained Geroux. After talking with the owner, they decided to see how far people would go with their offer, to live in this house.
Geroux said they plan to use a similar strategy for other hot rental properties in the future, at the request of owners. He described the rental market as being as dynamic as the housing market right now.
“Actually even more. There’s actually only one rental for about five sales that occur, so the rental inventory is extremely low,” Geroux said.
The reason behind this was simply the demand. Senior housing industry analyst Tina Tamboer of The Cromford Report said it was because of the influx of people moving to Arizona, and that they were willing and able to pay the costs. higher rental prices. The Cromford Report is an insider’s post for real estate agents, showing them current home resale trends and market analysis.
“The industries that have been drawn to the greater Phoenix tend to be industries that have higher incomes,” 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 made it difficult to find affordable housing. “It’s just frustrating knowing when you wait four or five days and hear that you haven’t figured it out,” Smith said.
Real estate agents say the average rental price in Maricopa County was around $ 1,950 right now. That’s about $ 1,000 more than the average cost of a typical mortgage loan.