Single father put in pinch by rental bidding wars

U.S.

(NewsNation) —Bidding wars for rental properties are becoming commonplace in the American rental market, giving some prospective renters a headache while squeezing their pocketbooks.

Landlords have raised rents on tenants while simultaneously making them engage in bidding wars for rented apartments or homes where, in a situation not dissimilar to buying a home, the highest bidder wins.

For people like Brandon Schwedes, a single father in Florida, rising rents and rental bidding wars have taken a toll on him and his family.

Schwedes and his kids had to find a new place to live after their landlord raised rent to a price he could not afford. They were lucky enough to find a new home relatively quickly, or so they thought.

After touring the rental home, Schwedes told the landlord he and his family were ready to move in as soon as possible. That’s when communication with the landlord fell silent.

The next day, the landlord contacted Schwedes and let him know someone else had offered to pay a higher monthly rent and unless Schwedes wanted to match, they would go with the other tenant. Schwedes declined to pay the extra money and was back on the hunt.

He eventually found a place to live where he is paying the same amount in rent that he was previously; it is, however, a smaller home. His ultimate goal is still home ownership, but financial limitations are still keeping that dream at a distance.

Schwedes said he would need “a lot more cash on hand” to buy. “Moving costs, for example, is as much as three times your rent, so you look at a two-bedroom, you’re paying $1,400 to $2,000… that’s $6,000 to move in. Five to 10 years ago, that’s a down payment on a house.”

As far as his advice for others in a similar situation, Schwedes said the key is to keep looking and keep pushing.

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