SWEETENING THE DEAL

It pays to be a renter these days, especially if you're in the market for an apartment.

Flexible contracts, relaxed policies, free trips and electronics are among the offers local apartment companies are making to attract new renters and entice them to sign leases.

But the best and most common incentive these days is one that renters need more than anything, experts say: money.

"Because of that occupancy loss, apartments are either lowering rents or offering one or (two) months' free rent," says Arlene Mayfield, president of Apartment Guide, a publication that offers listings of local properties and their amenities.

They're also waiving application fees, offering to pay for utilities and holding apartments for a fraction of what companies required when the housing market was booming and apartments were in high demand, she adds.

"When the market was really good, we saw companies charge for water, submetering for utilities," Mayfield says. "Because it is so tough to get renters these days," companies are picking up those tabs.

At the end of the third quarter, occupancy rates in the valley were 91 percent, down from 93 percent the same time in 2008, says Jake Joyce, analyst for Applied Analysis.

That is down significantly from the 95 percent and higher rates of the boom years, notes Robert Correa, district manager for Camden properties.

People think apartments should be doing great because the foreclosure rate is so high, he says. But many people are cutting back, moving from three to two bedrooms, doubling up with a roommate or renting a house. The glut of empty houses in the valley creates a shadow market that drains renters away from apartments.

All of this has driven rent prices down, too, Correa says. The average monthly rent for an apartment in the valley was $840 at the end of the third quarter of 2009. That's $50 less than the $890 average in the third quarter of 2008, Joyce says.

Montego Bay in Henderson is sitting at about 96 percent occupancy, says former property manager Jill Panyi. Still, rents have been lowered significantly to attract new business. There seems to be fewer people to fill more vacancies.

A one-bedroom apartment was $850 a month, Panyi says. It now rents for $719.

In 2008, management offered new renters a chance to pop a balloon and win a prize, anything from DVD players to MP3 players. With unemployment increasing and job security faltering, people would rather have fewer expenses than a new toy, she says.

In recent months, management has waived application fees and given renters the chance to "win" discounts through drawings or scavenger hunts.

Customer service becomes more important in this type of climate, Correa says, so management must listen and respond to tenants' needs.

A stable job history and good credit have long been industry requirements for leasing apartments, but with the valley's employment market, companies have become more flexible. They will take a renter with only three months on the job, Correa says, when they might have required a 12-month history. Camden properties offer a bankruptcy forgiveness program because the company knows that even someone who forecloses on a house and files for bankruptcy may still be able to afford rent, Correa says.

Apartments also are becoming more flexible on their pet policies, Mayfield says. In the past, they charged pet deposits and even restricted renters from owning pets of certain sizes. Now, companies are working with potential tenants who have animals.

It is a renters' market, Correa says, and consumers can find great deals. The best thing to do is shop around for the deal that is right for you. But, like all good things, it will one day come to an end. Experts think that the market will pick up and absorb vacancies, creating high demand again. When that happens, prices will increase and incentives will vanish.

But, if you're looking for an apartment now, you have plenty of time. At least until 2013, when things are expected to get better, Correa says.

Contact reporter Sonya Padgett at spadgett@ reviewjournal.com or 702-380-4564.