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Perkins on Real Estate

'Career renter' skills are necessary in new market

By Broderick Perkins

Dust off your rental application. Pull your credit report. Update your résumè. Get a haircut. Suit up.

If you want to run with the renters in today's bullish landlords' market, you'll need the skills of a, well, career renter.

Even if you don't plan on renting for life, acting like you will could make a big difference in the rent you pay, concessions you receive and the amenities that come with the deal.

The improved economy has allowed landlords to lure shelter-seekers who are not quite ready to buy, but, like homebuyers willing to pay an $800,000 median price, are attracted to the area.

Housing demand in Silicon Valley's high housing-cost region boosted average rents in the San Jose area to $1,359 a month in the first quarter of 2006, a 5.8 percent increase from the same period in 2006. The average rent hasn't been that high since the third quarter of 2003, when the average was $1,355, according to Novato-based RealFacts.

Occupancy has grown, too, to 95.9 percent. The last time the occupancy rate was that high was during the second quarter 2001, at 94.8 percent.

"Occupancy numbers have been going up almost every quarter for eight or so quarters. And the same for rent," said Chris Bates, RealFacts' spokesman.

It's not just Silicon Valley. Even if you choose to look elsewhere for cheaper rental housing, you'll face tight markets.

John Burns, founder of Irvine-based RealEstateConsulting.com, dubbed "2006: The Year of the Apartment" because home prices--up 13 percent in the last year and 58 percent in the past five years nationwide--have moved beyond the reach of many middle-income households, forcing them to rent.

It's the kind of market where the old-school way of schlepping from one apartment complex to the next looking for shelter may not cut it. Instead, much as a job- seeker develops an approach to set him- or herself apart from the competition, renter hopefuls can also develop and use career renter skills.

Here's how:

* Approach your rental-housing search as you would a job search. Be organized, serious and professional in both actions and appearance so that you stand out as the best applicant. Leave the shorts and flip-flops for the beach.

* Contact your references ahead of time to be sure your information on them is current and that you have their permission.

* Keep your credit in good standing. Obtain a free copy of your credit report from the one and only federally sanctioned AnnualCreditReport.com. Examine it, correct any errors and make sure what you say in the rental application is consistent with what the landlord will see on the credit report.

Likewise, any data-compiling agency, including major rental screening operations regulated by Fair Credit Reporting Act and its Fair and Accurate Credit Transactions Act amendments, are required to give you access to your data for free. If a report isn't free and you can purchase it, do so.

ConsumerAffairs.com's five-part series "Behind The Screen Door: The Ins and Outs of the Rental Screening System" is required reading.

* Be prepared with all the information you need to complete a rental application. That includes full, prior addresses, bank account and credit card numbers, and a list of references. Landlords will not respond to incomplete applications. A rental application form--available online and from legal self-help, community and social organizations--prepared in advance may be acceptable. Even if the landlord rejects it, it is a good way to compile your information for on-the-spot easy transfer to the landlord's required application.

* Consider preparing a renter's résumè--a chronology of your rental life, just as job- seekers use employment résumès. You may have to repeat the information on the application, but again, you will stand out as well-organized and prepared.

* Let all your friends, family members, associates and co-workers know you are looking for an affordable rental and what you want in a rental home. Explore newspaper classified ads, renter magazines and the Internet for listings. Post notes on bulletin boards at public places you frequent.

* Know what you really want and what you don't want in terms of square footage, rooms, housing type (single-family home, apartment, duplex, etc.) and shop that market. Be flexible with the rest of your criteria (amenities, concessions, etc.). Be prepared to decide on the spot, and be prepared to leave a deposit and credit check fee.

* If you are renewing your rental contract or renting anew, lock in your rental costs as much as possible by negotiating for the longest rental contract your lifestyle permits. Certainly don't lock into a long-term contract if you know there's a chance you may be relocated or will have to move after a short period. Any savings you hoped to enjoy from a long-term contract could be lost in costs to break the contract.

* Before signing on the dotted line, be sure you understand the terms of the contract, the monthly rent, due date, deposits, required care and upkeep, community or house rules and any other details. Get help with any of the terms or details you don't understand.

Real estate writer Broderick Perkins, executive editor of San Jose-based DeadlineNews.Com, writes regularly for this newspaper.