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APARTMENTS LURE TENANTS WITH DEALS

-March 5, 2010

Vacancy rates are up at many apartment complexes around the city. And that has some building owners offering specials to lure people in the doors.

CTN's Stephanie Ring joins us now from Hanson Boulevard with the story. Steph?

Steve and Karen, this is just one example of some of the specials going on in the rental market. Here at Baneberry Estates, this sign advertises the facility's latest promotion. The rental market has fallen victim to the economy and to the tax credit being offered to homebuyers.

"We just upgraded the countertops, here you can see newer appliances throughout."

At Heritage Heights Apartments, Renata Sandberg has a 92% occupancy rate. She would like it to be higher.

Sandberg says, "I think in March it's a little bit slower than we'd like to see...but we're anticipating with good weather we'll have more people coming in."

To get people in the door, Heritage Heights is offering one month of free rent with a 13 month lease. The facility is one of many offering deals to help fill their units.

Sandberg says, "It's really kind of sad, you don't want to have to offer specials but when occupancy decreases below a certain percentage, you're forced to decrease rents or offer a concession."

In the metro, apartment vacancies are over 7% according to recent numbers. Coon Rapids vacancies are about the same. That's about 2% higher than the end of 2008. Landlords say job loss is a major factor for why people are moving out. And the homebuyer tax credit is luring more people into home ownership.

At Summit Oaks Apartments, they too have felt the effects of the economy.

"It was pretty rough in the months of November, December, January and even into February.

But management says things are looking up so far in March. Here, they are not offering specials. Instead, they say the large apartments and the sense of community within the building sells itself.

Summit Oaks Property Manager Holly Wirtzfeld says, "What I am doing here in the building is more of a feeling than actually offering months off rents or other things that are going on the marketplace."

Whatever the strategy to sell apartments, one thing is for certain. When the economy turns around,, the bargain hunting will be over.

Sandberg says, "As soon as occupancy increases, you're not going to see those types of specials, really we want people to think of renting as a lifestyle."

The specials out on the market right now really vary according to the building you're looking at and in what area of the city you're in. And some facilities have higher vacancy rates than others.

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