Negotiate Better Rent With or Without Apt Finding Service? (Chicago: sales, apartments)

[millennialmom]

We'll be in Chicago next week to look at rental options for my daughter. We've been provided with excellent referrals for Apt Finding Services and know that it costs us "nothing." However, with the excellent guidance you all provided we have pretty much zeroed in on an area and have selected specific apartments to look at. I'm thinking that if we forgo the apt finding service and pursue on our own, that we should be able to negotiate a better rent than we would get with an apartment finder (due to the apt saving the finder fee). Is this a reasonable expectation? Or, is it generally recognized that we will get the best deal through an apt finder?

Again, by sharing the wisdom of your experience we feel so much better prepared and laser focused. You have been tremendously helpful. We can't thank you enough.

[lincolnparker]

It depends on who the owners are. Most if not all apartment rental buildings will offer you the same price and same incentive, regardless of a finder or not. More often than not, private landlords will not budge either, especially in sought after neighborhoods like lakeview and lincoln park. I have seen concessions being offered in gold coast, river north, lakeshore east, streeterville, etc as of late March 2009. Sometimes up to 2 months rent free and 6 months free parking. Large apt bldgs in southern part of Lincoln Park (eugiene terrace comes to mind) are offering about $100 less than last year, but many do not offer free rent. The most robust rental market is east lakeview and east lincoln park from Addison to the north, Lake to the east, Lincoln to the west until it hits ashland,and fullerton to the south. Expect to get almost no concession on hot properties from those hot areas. Nice properties in that corridor are just flying out of the door these days.

[millennialmom]

We're looking in The West Loop/Loop, within 10-15 minute (or less) walk to Union Station. Based on the Apt Finder ads on Craigslist, they are offering 2 months free in this area.

[Avengerfire]

I thought you were considering buying?

[lincolnparker]

You should be able to get some good deals in the loop like lower rent than 2008, possibly one month free, but I haven't seen them as juicy as GC, Lakeshore East, Southloop, where 2 months free, or a gift card in the range of $2k to $3k depending on size of apt can be had on a year long lease.

[millennialmom]

We decided to wait out the spring market, betting that there might be more motivated sellers in the fall. Also, it will give us a chance to see if this arrangement works ... living downtown and commuting to Buffalo Grove. It just feels better to rent, right now.

[Avengerfire]

Ok I understand.

[skipcromer]

Originally Posted by millennialmom

We decided to wait out the spring market, betting that there might be more motivated sellers in the fall. Also, it will give us a chance to see if this arrangement works ... living downtown and commuting to Buffalo Grove. It just feels better to rent, right now.

Yikes! Rough Commute.

[lincolnparker]

smart move! Unemployment rate is still rising and it trails recovery of the economy. Rising unemployment will deter demand, and as such will depress the price. Further, the supply of housing stock in Chicago is expected to be 20% more than in 2008, with more than 5000 new construction units coming on the market. Case in point, Superior 110 in river north has cut its price on 2/2 from 590k to 540k. Halsted Row in Lakeview has cut its price on 2/2 from 499k to 450k. And they are still not selling fast. The trend right now is to turn high end condos into rentals, further depressing the rent price. Also, most people are only willing to pay so much for a rental; rarely would someone put up with a $5000 a month rental, so many high end large condos are sitting pretty and vacant. Developers are stuck in between a rock and a hard place, with hands being tied by banks, who often dictate the terms on sales and rentals.

I am not trying to time the market, but I'd say that the best time to buy is just before the unemployment hits the peak. Many economist predicts that the unemployment rate will top out at around 10-12% range. Currently, the unemployment rate in IL is 8.6%. Obviously if you buy before 2010, you will get the 8000 tax credit. But I dont think thats incentive enough to move all the luxury condos priced at a half mil or more. We need to unfreeze the credit market, get people jobs, and let the market slowly come to an equalibrium.

Originally Posted by millennialmom

We decided to wait out the spring market, betting that there might be more motivated sellers in the fall. Also, it will give us a chance to see if this arrangement works ... living downtown and commuting to Buffalo Grove. It just feels better to rent, right now.

[millennialmom]

Originally Posted by skipcromer

Yikes! Rough Commute.

She lived in Buffalo Grove last summer and considers that to be more of a challenge. She'll be taking the train so that should help.