Daily Real Estate News January 22, 2009
Landlords and property managers are pointing out that they have never faced so many tenants seeking rent reductions, and fear of losing tenants is persuading them to negotiate."
In the apartment business before the downturn, it wasn't a 'Let's make a deal' climate," says Jessica Scully, president of Scully Co., a property management company with units in four states, “Now, it's something we are seeing more of."
Scully is particularly nervous about filling units that used to go to new graduates who are now likely to stay home with mom and dad.
Jared Wilk, an associate at Wilk & Welch Associates, a property management firm in the Boston area, even found himself working to keep a tenant whose rent check bounced. He was willing to lower her rent knowing he wouldn't be able to rent the apartment for more than the discounted amount. Trading a rent reduction for a lease extension is one way for both parties to get what they want, says Mitchell Rattner, president of Home Equity Savers in suburban Chicago.
Source: The Wall Street Journal, Dana Mattioli (01/21/2009)
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