Buying a Home? In This Economy? 6 Ways To Find Affordable Rentals Instead
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
It’s hard for many Americans who are struggling to afford groceries and gas to imagine buying a home in the current U.S. economy. Whiplashing tariff prices, many months of inflation struggles and persistently high home prices and mortgage rates are not making for the friendliest homebuying environment.
With the average home value around $367,000 in the U.S., according to Zillow, (and that’s on the vastly low end for West Coast and East Coast states), the fact is that many Americans may need to keep renting.
What are the best ways to find affordable rentals, however? Real estate experts offered some tips.
Cast a Wide Net
Jonathan Ayala, a licensed real estate agent and founder of Hudson Condos, agreed that while finding affordable rentals in today’s market is not easy, “but with a smart strategy, it may still be possible to land a good deal.”
Ayala said you can’t think small when you look for a rental; you need to “cast a wide net.” He recommended using both digital tools and personal connections.
‘I would recommend using multiple platforms — Zillow, and Apartments.com, Facebook Marketplace, HotPads — or by getting involved in local community groups online.”
Use a Rental Agent
The key to finding a rental is to find a good rental agent, according to Jeff Lichtenstein, CEO and broker at Echo Fine Properties, but “that is much harder than it sounds,” he said.
The problem is that agents are more motivated by the commissions associated with homebuying than renting. The commissions an agent will earn on rentals “is so low that it basically buys a nice lunch, but not much more for the agent,” Lichtenstein said.
Additionally, agents are wary of prospective renters being fickle or working with multiple agents. Without a sense of commitment, they may be reluctant. “Once the agent realizes that the customer is working with multiple agents, most just drop off because it isn’t worth it for the little pay they are getting.”
Talk To People
The best search engine for a good rental may be the people you know, Ayala said. “Friends, colleagues, and even social media followers. Let them know what you want.”
He suggested that it’s common for affordable rentals to change hands through word-of-mouth and other informal communication before they’re ever posted online.
Be Specific
Word of mouth works best when you tell everyone you know that you are looking and offer finder’s fees to friends who connect you with good landlords, according to Eli Pasternak, a real estate agent and founder of Liberty House Buying Group.
Check Local Places
“I suggest checking with local coffee shops, gyms and community centers because they often have bulletin boards with rental listings.”
Pasternak has also found that his clients have better success searching on their own than using agencies. Not only do brokers add fees that increase your total cost by 10% to 15%, who better than the potential renter knows what you’re looking for.
One of his clients found his rental through Facebook neighborhood groups where landlords post directly.
Broaden Your Search Location
Ayala also suggested that sometimes if you aren’t finding what you seek, you may need broaden your search location range.
“By searching just outside the most high-demand areas, renters can save significantly. A few extra minutes commuting can mean hundreds of dollars saved a month,” he said.
Red Flags To Watch For
No matter how you go about seeking a rental, there are some general red flags to watch for. Ayala pointed out that things like “vague descriptions, missing photographs, or listings that invoke the presence of additional ‘fees’ with little specificity” could be sketchy. He also warned to be wary of listings that seem to be offering a much lower rate than the area calls for. “They can be bait-and-switch ploys,” he said.
Pasternak added, “I tell my clients to watch for ads that do not show the actual address or require application fees before viewing the property.”
If you’re not sure that the rental you find is appropriately priced, Lichtenstein said look for “comparables” — check that other similar apartments or homes are priced in the same range.
Lichtenstein said that the rental market may be better right now than it has been for a while because “inventory is piling up.” Sellers who can’t make a sale or are delaying selling, are renting instead, “making this a good time to be a tenant.”
More From GOBankingRates
