When you live in a competitive rental market like San Francisco or New York, finding a great (or even decent) home can feel impossible. Preparation is everything, so here are a few tips and tools to help you get what you're looking for.
Of course, you could move away to a cheaper, less competitive city, but that isn't always possible. Maybe you have a job in the city, or family nearby. As long as you can afford to live there, big cities can be great—but finding an apartment can get insanely competitive, and you need all the advantages you can get.
Know What You're Getting Into and Prepare Yourself
It's much harder to find a place in a competitive rental market. This can be due to a variety of factors, but the bottom line is that you (the renter) may have to jump through hoops just to be considered as an applicant. Every landlord has different requirements, but most often these hoops involve you bringing excessive amounts of paperwork to open houses, being ready to throw down large amounts of money up front, and having to put in much more effort to convince someone to rent to you (even if you have stellar credit, a stable job, and good personal hygiene). Even if you're just trying to rent a room in a house, you'll face many of the same challenges.
Before you look at listings, you'll want to prepare yourself, both mentally and in terms of paperwork.
Start with a little research before you look at listings. Talk to friends, family, or search for online forums—like Quora—for stories of other people's experiences in the same market. You should also seek out local culture blogs (for example, here in San Francisco, we have The Bold Italic) that can provide information on what it is like from the renter's prospective (and maybe bring a little humor to the situation, too).
Make sure you can cover the financial costs. Beyond the basics like estimating rent, deposit, moving costs, you'll want to save some cash on the side in case other things come up. Look at the listings in your desired neighborhood to see if anything unusual—like dock fees or moving truck fees apply to you so you have the cash on-hand.
Prepare a paperwork packet. You'll want to bring all the paperwork you need to apply on the spot at an open house. You need this packet in a competitive market because you want to be able to apply as quickly as possible to beat out other interested parties. This packet should include:
A renter résumé that includes your credit score, household income, occupation, pet information and rental insurance policy information.
A filled out rental application
A copy of your credit report
A copy of your ID
Proof of income
For any pets, bring training certificates, proof of vaccination and letters of recommendation from previous landlords.
Your checkbook (so that you can pay application fees)
Have a backup plan. If your preferred neighborhood is just too hot for you and you can't get in, consider other neighborhoods in the vicinity that may be a little more accessible. You could also make things easier by being flexible about the type of housing you're looking for. If you're trying to live with other people and the search has been a struggle, think about if you should break off on your own to better your chances.
Once you have all this in place, only then should you start looking at listings.
Go Through Open Houses Like a Pro
In order to get a leg up on other renters, you'll need to take advantage of every tool at your disposal. That includes:
Automate everything you can. Decide how you'll discover listings (check out our favorites for suggestions). Next, spend a few minutes creating accounts on each at once so that you can use them ASAP. You'll also need to create a way to track rental information (like this spreadsheet that I used). By using a tracking system, you can keep all your information in one place and record contact information for every spot you like—in case the listing expires or is taken down.
Keep an eye out for scams. Niccole Schreck, writing at U.S. News, uses New York's rental market as an example of scams you may run into:
Does the deal seem too good to be true? Look out for words such as "cozy," "charming" or "unique." They could translate to shoe-box sized apartments, old and outdated features, or bizarre layouts that makes fitting furniture impossible.
Another term to be aware of is "converted," which means an additional bedroom has been created using a fake or temporary wall. So a converted two bedroom means you're actually renting a one bedroom apartment that has been rigged with walls that weren't there originally. Other alarming red flags to back away from: if you're asked to wire funds; if the landlord or broker is employing high pressure tactics; or if someone is attempting to sublet or rent out a place that belongs "to a friend." All of these are signs that things may not be quite right, and you should take precaution.
Have an "elevator pitch" ready. Practice a quick description of yourself and your housemates so that when you talk to the landlord or agent, you make a good impression. During your chat, your prospective landlord may ask you questions such as "Why do you want to move out of your current place?" Prepare answers to questions like this so that you can answer confidently. You can also try to stick out amongst applicants by sending a thank you email afterwards and reference something you two talked about.
Don't be afraid to ask questions. Even though a competitive rental market can make you feel like you must do everything to be in good favor with the potential landlord, you shouldn't be afraid to ask them questions about the home, neighborhood, or past tenants. You're the one who will end up paying to live somewhere, you don't want to be stuck in a bad apartment just to have a roof over your head. Bring a checklist with you so that you can make note of anything you see (good or bad).
Know your rights. Research your renter's rights in your state and county so that you know what landlords can and can't ask of you. Arm yourself with this information before you even go to open houses so that you can weed out listings with landlords that make illegal demands of applicants.
Preparing all of this stuff ahead of time will make a huge difference once you start digging into listings. You may want to clean up your social media accounts and check your privacy settings too in case your landlord searches your name. The last thing you want them seeing are photos from that wild New Year's party you hosted at your last apartment.
Make It a Priority and Move Quickly
The more competitive your rental market is, the faster you need to jump on listings you're interested in, even if it's just to take a tour. After all, in a competitive market, you don't have the luxury of waiting until the weekend to look at a place you saw on Craigslist on Tuesday.
Clear your schedule on evenings and weekends so that you have the time to go to showings—even last minute ones. You will probably find the whole process intense, so take time for self care during your search. This is even more important if you're looking with someone else since the stress of a competitive rental market can greatly impact your relationship. Remember, you want to find a place you'll be happy in, and that requires you keep a clear head.
Tough as it is, be on high alert to respond to landlords and agents. It is likely they have several people interested in their listing, and if you don't respond fast enough they'll move on to the next person. Set up push notifications from your apartment search app, or just watch your email like a hawk. . Once you're in contact with them about a lease, be clear about everything.. For example, I applied to a place on a Friday and signed the lease the following Wednesday. Part of why I was able to get the landlord to move so quickly is because I emailed them stating that I was ready to sign the lease and give them the deposit and rent now. Realize that unlike a "normal" rental market, you may not be able to do things like negotiate rent or other parts of your lease before signing since you have so much competition.
So much of our time and money goes into finding and creating the perfect home. With this guidance, you can now dive into a competitive rental market and come out with a place you love.
Images from Edgewater Media (Shutterstock), milestonemanagement, hagwall, and blmurch.