Apartment Renters Locking in Longer Leases

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By Chelsea Kopta

Summary

It's harder than ever to find an apartment, and KEPR has learned the housing crunch may get even worse. Action News found many apartment renters are re-upping their leases for months to ensure they're not out of a home in the housing crunch.

Story Published: Sep 8, 2010 at 6:43 PM PST

KENNEWICK, Wash. -- Dozens of people might walk through the model, two-bedroom apartment at On the Boulevard every month, but good luck getting it. Of 202 units at the Kennewick complex on Gage Boulevard, just three renters were willing to part ways with their place last month.

"This is the least amount that I've ever seen in the whole time that I've actually done property management, which is about 14 years," Ayesha Grantham said, Property Manager for On the Boulevard.

The Tri-Cities currently sits at a 99-percent occupancy rate due to a stronger economy and job market. Action News found that trend has renters renewing their leases at unprecedented rates. According to Grantham, about 75 to 85 percent of On the Boulevard renters have renewed their lease in recent months. We also found, at the Timbers apartment complex in Richland, management estimated that 90 percent of renters locked into leases for another year, both to secure a home and keep rates down.

At the end of a lease, many landlords have the ability to reevaluate apartment rental rates based on market demand. Since demand has been steadily increasing in the last year. Most apartment managers have increased prices between $25 and $45 a month each time a lease is renewed.

"It was cheaper for me to lock in on a year lease rather than go month to month," Kurtis Brogoitti said, who lives at Timbers. "It just saves money and its so hard to get into apartments."

On average this month, KEPR found one bedrooms cost roughly $800 dollars and upwards of $900 across the Tri-Cities. We even found a one bedroom in Kennewick worth $1,149 which is about the same as some mortgage payments.

"I think it's extreme and the only reason is because of the demand," Kasey McComas said, Property Manager for The Crossings at Chapel Hill Apartments in Pasco.

McComas explained that the recent trends have actually created the opposite effect at her complex: a demand for more short-term leases. She said higher prices are driving many Pasco renters to not renew their leases and become homeowners instead.

"I have a resident, he's been here for four years," she said. "He and his wife moved into an apartment from a home to save money and now they're re-purchasing a home because it's cheaper for their mortgage than it is for their rent. And they weren't even at the market rate."

If you're looking to go that route, you may not even have to wait until your lease is up. Some property managers said the higher demand has made it easier for renters to break their lease, although policies vary depending on where you live, so make sure to do your research.

Brogoitti added one last piece of advice for those looking for a place: "My recommendation is to get an apartment quick and hold on it."



APARTMENT MARKET SURVEY
Completed by The Crossings
Completed: 9/1/2010

One Bedroom Apartment Rental Rates
Broadmor: $915 - $965

The Villas: $950 - $1,135

Bella Vista: $775 - $850

Grandridge: $1,100 - (no other price noted)

La Serena: $750 - $850

Seasons on 4th: $850 - $950

On the Blvd.: $655 - $675

Village at Grandridge: $545 - $625

Crosspointe: $899 - $1,149

Centerpointe: $850 - (no other price listed)

The Crossings: $850 - $875

Stonegate: $600 - (no other price listed

Silver Creek: $650 - (no other price listed)