4th Quarter 2010

Apartment rentals have picked up considerably from the beginning of 2010.  Well priced apartments that are easy to show and in good condition will rent in under two weeks.  Units overpriced will not move because there is a large amount of inventory from which a potential tenant can choose. 

Apartment rents should increase about 6% per year over the next several years as pent up demand begins to be unleashed.  Many college students have spent the past few years living at home.  Many other previous homeowners are no longer in the rental market due to foreclosures.

Landlords: 

Apartments are renting quickly and can lease within days but be very careful of screening potential tenants.  Insist on a credit report, verification of income and always use a criminal background check.  Criminal background checks are expensive but worth every penny to find out that your applicant owes thousands in child support or just got out of jail for assaulting his past landlord.  They run $100.00 per person.

As the rental market heats up also beware of potential tenants approaching you directly from web sites.  Some sites that landlord use include Craigslist.com or Zillow.com.  Recently our office stopped a scam when a tenant approached one of our landlords and attempted to occupy an apartment using a fake cashier's check.  The actually check was real but washed with acetone which removes critical information.  The landlord spent four hours explaining to the NYPD that she was not part of the scam when she attempted to cash rather than deposit the check.

Always use a Realtor to ensure your tenants are legitimate and the lease is properly prepared. A simple mistake on a lease can inadvertently rent the entire house to a tenant instead of the intended apartment.  Once the tenant takes occupancy you then have to evict them even if their initial checks bounce.

For more suggestions or a free landlord guide, call me at 973-783-4500.

How is The Sales Market?

Sales in Northern New Jersey are predicted to decline another 6% in 2011

Ideally, the property must be priced at or slightly below market price.  This is a time for straight, honest, accurate and to-the-point information, not sales gimmicks just to entice a trusting client to list their property.