1 00:00:00,040 --> 00:00:01,720 Speaker 1: Let's say good morning now to the host of How 2 00:00:01,720 --> 00:00:05,680 Speaker 1: to Money on KFI. It's Joel Larsgard. Joel renters have 3 00:00:05,720 --> 00:00:08,200 Speaker 1: an upper hand in the housing market. Please tell us 4 00:00:08,200 --> 00:00:08,560 Speaker 1: about that. 5 00:00:09,240 --> 00:00:12,400 Speaker 2: Oh yeah, so that's it's super interesting because for the 6 00:00:12,440 --> 00:00:15,480 Speaker 2: longest time, and man, I was getting so many phone 7 00:00:15,480 --> 00:00:19,919 Speaker 2: calls and emails from people during the height of the pandemic, 8 00:00:20,120 --> 00:00:24,599 Speaker 2: when we were just seeing incredibly rapid increases on rents, 9 00:00:24,640 --> 00:00:28,000 Speaker 2: like think about how quickly rents moved up right from 10 00:00:28,080 --> 00:00:30,560 Speaker 2: in twenty twenty one twenty twenty two, and it was 11 00:00:30,600 --> 00:00:34,240 Speaker 2: such a pain point, and people were devoting more of 12 00:00:34,280 --> 00:00:37,319 Speaker 2: their income, higher percentages of their income to rent than 13 00:00:37,360 --> 00:00:40,920 Speaker 2: ever before, across so much of the country. And that 14 00:00:41,440 --> 00:00:45,480 Speaker 2: seems to have changed, it subsided significantly. In some markets, 15 00:00:45,880 --> 00:00:49,840 Speaker 2: we're seeing rents decline meaningfully. And part of that is because, 16 00:00:49,880 --> 00:00:51,519 Speaker 2: I mean, truly, if you go back to econ one 17 00:00:51,560 --> 00:00:53,960 Speaker 2: oh one, we learned about supply and demand, and it 18 00:00:54,040 --> 00:00:56,760 Speaker 2: seems so quaint, and it seems like maybe it shouldn't 19 00:00:56,800 --> 00:01:01,200 Speaker 2: actually work out in reality as simple as as we 20 00:01:01,320 --> 00:01:04,800 Speaker 2: learned it. But it does, especially in the housing market. 21 00:01:04,880 --> 00:01:08,080 Speaker 2: It just takes time for this correcting mechanism to work 22 00:01:08,120 --> 00:01:11,679 Speaker 2: and in cities that have allowed more building, we have 23 00:01:11,760 --> 00:01:14,800 Speaker 2: seen rents starting to go down, for instance, in Atlanta 24 00:01:14,880 --> 00:01:18,480 Speaker 2: and Austin. Austin in particular Boomtown, they built so many apartments. 25 00:01:18,520 --> 00:01:22,520 Speaker 2: We're seeing rents go down LA the LA area. We're 26 00:01:22,520 --> 00:01:25,679 Speaker 2: seeing rents at least moderate. We haven't seen as much 27 00:01:25,720 --> 00:01:29,280 Speaker 2: supply go into this market, but we're at least seeing 28 00:01:29,440 --> 00:01:34,039 Speaker 2: rents become more stagnant and soft. And it means more 29 00:01:34,040 --> 00:01:35,920 Speaker 2: apartments out there saying hey, we'll give you a month 30 00:01:36,000 --> 00:01:38,440 Speaker 2: or two a free rent, or you have more ability 31 00:01:38,480 --> 00:01:42,039 Speaker 2: to negotiate with a potential landlord about the terms that 32 00:01:42,200 --> 00:01:44,120 Speaker 2: maybe before you just kind of had to suck it 33 00:01:44,200 --> 00:01:47,080 Speaker 2: up and deal with whatever they told you, and if 34 00:01:47,120 --> 00:01:49,080 Speaker 2: you wanted the apartment or if you wanted the house, 35 00:01:49,320 --> 00:01:50,920 Speaker 2: you just had to be like, Okay, I guess I'm 36 00:01:50,960 --> 00:01:52,840 Speaker 2: signing up for that. And now you have more ability 37 00:01:52,880 --> 00:01:53,480 Speaker 2: to push back. 38 00:01:53,760 --> 00:01:57,000 Speaker 1: Okay. So then, and I know you're always looking for 39 00:01:57,040 --> 00:01:59,560 Speaker 1: a good deal, So how do you do that gently? 40 00:02:00,440 --> 00:02:02,760 Speaker 2: Yeah? So I think there are ways to make it 41 00:02:02,840 --> 00:02:05,920 Speaker 2: kind of a win win situation as a renter. So 42 00:02:06,680 --> 00:02:10,400 Speaker 2: first off, like my little sister is the best at this. 43 00:02:10,639 --> 00:02:14,920 Speaker 2: What she does is she is. She's kind of a minimalist, 44 00:02:14,919 --> 00:02:16,600 Speaker 2: so moving is not nearly as big of a pain 45 00:02:16,600 --> 00:02:18,360 Speaker 2: in the butt as it is for most people, and 46 00:02:18,400 --> 00:02:20,919 Speaker 2: so she will take up those apartments on their offer. 47 00:02:21,040 --> 00:02:23,760 Speaker 2: If the apartment she got a couple months of free rent, 48 00:02:23,760 --> 00:02:26,799 Speaker 2: that is not offering the same deal the next year, 49 00:02:26,840 --> 00:02:29,480 Speaker 2: which typically they don't for someone sticking around, she'll march 50 00:02:29,560 --> 00:02:32,720 Speaker 2: right down the street and get a similar deal elsewhere. 51 00:02:32,800 --> 00:02:35,600 Speaker 2: Typically it's hard to negotiate the rent down, but you 52 00:02:35,760 --> 00:02:39,760 Speaker 2: can ask for a first free month or two, especially 53 00:02:39,800 --> 00:02:42,240 Speaker 2: in markets that are overbuilt. The other thing you can 54 00:02:42,280 --> 00:02:46,120 Speaker 2: do making it a win win for a landlord is 55 00:02:46,360 --> 00:02:49,560 Speaker 2: to say, hey, listen, I'm willing to sign a two 56 00:02:49,639 --> 00:02:52,720 Speaker 2: year lease if you'd be willing to decrease the rent 57 00:02:52,720 --> 00:02:55,000 Speaker 2: by one hundred bucks a month. And what you want 58 00:02:55,040 --> 00:02:57,280 Speaker 2: to do is you want to speak to a pain 59 00:02:57,320 --> 00:03:00,560 Speaker 2: point that a landlord has, and often the they're trying 60 00:03:00,600 --> 00:03:04,480 Speaker 2: to avoid is vacancy. And so if you're like, hey, listen, 61 00:03:04,560 --> 00:03:06,280 Speaker 2: here's why I'm going to be a great tenant. I'm 62 00:03:06,280 --> 00:03:08,079 Speaker 2: planning on sticking around for a while. Can you give 63 00:03:08,080 --> 00:03:10,040 Speaker 2: me a better rate? Can you give me a better price, 64 00:03:10,200 --> 00:03:13,160 Speaker 2: that's a good way to approach that negotiation, and often 65 00:03:13,200 --> 00:03:15,480 Speaker 2: a landlord's like, sure, that's good for me, and. 66 00:03:15,440 --> 00:03:17,720 Speaker 1: That's good for you, So it doesn't hurt to ask. 67 00:03:17,800 --> 00:03:19,920 Speaker 1: That's good to know, because, like you said, a lot 68 00:03:19,919 --> 00:03:21,240 Speaker 1: of times you just go in and you think the 69 00:03:21,280 --> 00:03:23,800 Speaker 1: price is the price. But everything's negotiable, right. 70 00:03:24,040 --> 00:03:27,320 Speaker 2: Yeah, everything is negotiable, even even with some of the 71 00:03:27,320 --> 00:03:31,680 Speaker 2: bigger apartment companies, but especially when we're talking about individual landlords. 72 00:03:32,520 --> 00:03:35,040 Speaker 2: There's just a lot of room to negotiate and to 73 00:03:35,120 --> 00:03:38,480 Speaker 2: find a situation, find a price, find terms that kind 74 00:03:38,480 --> 00:03:40,400 Speaker 2: of work out for everybody. 75 00:03:40,040 --> 00:03:41,920 Speaker 1: All right, And now if prices would just go down 76 00:03:41,920 --> 00:03:44,960 Speaker 1: in La. The host of how to Money on KFI 77 00:03:45,000 --> 00:03:48,680 Speaker 1: is Joel Larsgard. You can hear him every weekend Sundays 78 00:03:48,720 --> 00:03:51,160 Speaker 1: from noon to two, and of course you can follow 79 00:03:51,240 --> 00:03:53,440 Speaker 1: him at how to Money Joel and he's got lots 80 00:03:53,440 --> 00:03:55,800 Speaker 1: and lots and lots of great advice for you. And 81 00:03:56,160 --> 00:03:59,000 Speaker 1: next week I would love to talk to you about 82 00:03:59,240 --> 00:04:03,720 Speaker 1: creating a budget for Christmas spending because it's upon us 83 00:04:03,880 --> 00:04:07,119 Speaker 1: and if you're like me, you probably overspent last year 84 00:04:07,160 --> 00:04:08,720 Speaker 1: and you don't want to repeat it this year. 85 00:04:09,840 --> 00:04:12,360 Speaker 2: Let's do it, Okay, Thank you so much. Joel, you 86 00:04:12,440 --> 00:04:13,240 Speaker 2: got it. Talk to you soon.