Rent Checks vs. Mortgage Checks

Another sign of the real estate market condition in these parts is the high volume of rental listings that we brokers are handling. Rental listings have typically been but a drop in the bucket of the total business done by a conventional real estate brokerage in Chicagoland. Not so much right now!

In my own office branch, a full 50% of our monthly transactions are now residential leases. That is a huge number for an office that is more accustomed to selling and buying homes in the higher price ranges.

Why is this happening? It is definitely a result of the housing market slowdown. Many folks cannot get a mortgage right now (credit score too low, not enough downpayment, debt to income ratios out of wack, have a house to sell before they buy but can't get a bridge loan). Others are relocating here from other cities and cannot afford to housing in Chicago, even with our depressed pricing. Others have sold their home and haven't found what they like to buy as the next home. Still others have been forced out of their homes due to foreclosure (or the threat of foreclosure and sold as a "short sale"). Everybody still needs a place to live. So what are the choices? Move in with your best friend (not always an option!), or rent.

The mortgage specialist in my office told me that she pulled 16 credit reports for leasing situations in one week. Again, that is a huge number for our office.

I have personally assisted more clients with a rental property this year than in all my years as a Realtor combined. And yes, there are lots of rental properties in the multiple listing system. Going on a rental home search is usually easier with a Realtor at your side, instead of going it alone. Case in point is a lease that I just wrapped up for clients, a difficult situation because it is a condo unit with an association and property management company that put many demands on them. Because I am so familiar with condo operations, I was able to guide them through it, anticipate the problems, and put out the fires that did erupt. The cost to a client for my help with a rental search? $0.00 if it is a MLS listed property. The listing brokerage shares the commission to my company, paid by the owner of the property.

So if renting is in your future, dust off your checkbook, boost your credit score where possible, and give me a call!