Freaking Over the Thought of Rental Bidding Wars?

Posted on Jun 15 2016 - 5:51pm by Lance Edwards

EXPTA61516Freaking Over the Thought of Rental Bidding Wars? Consider the power of one magic word: Transparency.

The recent launch of Rentberry, a rental application and price negotiation platform, has caused quite a stir among the young, the old and the restless. Before you share that next hate post, we ask that you stop and consider the power of one magic word: Transparency.

Definition of Transparency:

  • able to be seen through
  • easy to notice or understand
  • honest and open, not secretive

Source: Merriam-Webster’s Learner’s Dictionary

While some are screaming foul, and claiming that Rentberry may drive pricing off-the-charts in uber-competitive markets like San Francisco and New York, they fail to realize that its rental price negotiation concept actually levels the playing field.

Picture this, if you will: You and your significant other have found the apartment of your dreams, with all of your desired amenities, and more. It’s within walking distance to work for both of you. You want this apartment. You’ve submitted your written paper application to the landlord. All you need is for that phone to ring. And you wait. The landlord never returns your calls. You and your beloved are both devastated, and can hardly stand the thought of starting the apartment hunt all over again. A few weeks later, through a friend of a friend, you find out the couple who got your dream home only offered $20 more per month over the asking price.

What’s wrong with this picture (besides everything)? NO TRANSPARENCY.

Rentberry’s not the sinister tech specter that some might think.  Quite the contrary. The mission of this spunky new start-up is to improve the rental process for both the potential tenant AND the landlord. Open and honest rental price auction allows all players to fairly participate in the application process, which actually helps keep prices down and in-line with true market value. Therefore, knowing what the current offers are could save tenants from wasting an extra $70 per month, when just $30 may be enough to secure the property.

Furthermore, Rentberry automates and provides credit and background checks for free, saving money and time for both parties, and helping landlords make educated decisions about their tenant choices. The landlords are not obligated to take the highest offers. A second or third applicant may end up higher in the running due to other qualifications or the results of a background check. There are also two components to a price auction: security deposit, and monthly rent, allowing for a variety of financial scenarios. For example, one might offer $50 per month over initial price but ask for a $1,000 off a security deposit. By contrast, in slow markets, transparent application process may allow for faster turn-around and reduced vacant periods for landlords as well as help tenants secure properties with the discounts. Everyone wins.

Rentberry can save money for applicants in others ways as well. Nowadays, the average paper application fee is $45 per property. Think of the person who applies to 10 properties and spends $450 with no guarantee of acceptance. Rentberry’s free application process may make all the difference for a low income family who simply cannot afford to apply for multiple properties with the cost of the traditional fee. For these reasons, we kept the application process simple and absolutely free to everyone.

Moreover, Rentberry actually helps landlords follow Federal Housing Law. By automating the screening process, qualified tenants are not chosen based on discriminatory preferences. Instead, once they qualify, tenants can be selected based on their final price offers, which is fully allowed by the law.

Keep in mind, with or without Rentberry, savvy prospects will never pay more than what a property is inherently worth. No one will pay $20,000 for a studio apartment, no matter how hot the market. As for landlords maximizing their property’s rental potential…who wouldn’t want to try to get the highest return that the market will bear on their investment? There are certain housing market factors that Rentberry can’t affect and doesn’t claim to change. For example, those in the private sector high-profile positions will inhabit and fuel the “hot markets” and high rent areas, unless, of course there is a sweeping change in government philosophies and public sector salaries begin to rise.

Change never comes easy, but it can be the catalyst for progress. Now is the time for those seeking to rent a new home to digitally connect to those needing to secure qualified tenants. Now is the time to consider the power of transparent rental application and price negotiation process, and to experience the proficiency of Rentberry, a revolutionary new way to secure a mutually-beneficial long-term lease.

The future looks bright. When demand is high, and growth is exponential, take some time to investigate and discover efficient new rental platforms designed to help both tenants and landlords realize the full potential of this long-term rental trend.