A student housing building spree and caps on student enrollment have driven downtown vacancies up, a circumstance that tenants may be able to leverage to their advantage.
\I'm seeing a lot more 'for rent' signs than I've ever seen for this time of year,"" said David Keller, a principal owner of the Keller Real Estate Group.
In the second quarter of 2004, the number of vacancies within two of the isthmus' main zip codes-53704 and 53703-climbed to 4.07 percent and 4.68 percent respectively, according to Madison Gas and Electric records.
""The new high-rises that have gone up, that correlates directly to the vacancy and that's why there [are] the vacancies,"" said Curt Brink, a consultant for CHT Apartment Rental properties.
High vacancy rates have plagued Madison landlords for the last 18 months, but increasing property taxes, energy costs and insurance rates are limiting how low landlords can drop their rents, said Nancy Jensen, executive director of the Apartment Association of South Central Wisconsin.
""I think you have seen the best of what's going to happen in terms of specials that are getting offered and negotiations,"" Jensen said.
While many landlords might resist lowering their rental rates, they may be willing to offer other incentives to lure tenants, according to Brenda Konkel, executive director of the Tenant Resource Center.
Normally the vacancy rates downtown are so low that tenants have no bargaining power, Konkel said.
""But now that the vacancy rates are higher, tenants definitely should be bargaining. If you're moving in someplace and you see something that needs to be done to the apartment ... it's worth it to ask. And if the landlord does promise any of these things definitely get it in writing,"" she said.
For students who don't mind housing a little rough around the edges and are not picky about locations, there may still be room to negotiate rent as well. While rental rates for new or well-maintained housing will probably remain the same, rental rates for lower quality housing may drop, Brink said.
""It's the stuff that's in not as good of a location and maybe not as well maintained. That's where there's going to be some softness,"" Keller said. ""If it's a brand-new building we know that it's going to rent, so we tend not to bargain.""
This is especially true for one -and two-bedroom units, which tend to be easier to rent, according to Keller. Tenants looking for a good deal may benefit from renting with a gaggle of friends, particularly once school has started.
Also, landlords struggle to rent large five-bedroom units after August 14th and are more likely to negotiate rent, Keller said.
In general, looking for rental property in the downtown area after the majority of students have already moved in is a great time to try and get a deal, Konkel said.
""That's an important thing for students to remember next spring,"" Konkel said. ""Those students who get out there right away and get the first apartment they can find are probably going to pay a lot more than those that take a bit longer.""
