Greg and Rachel Bagues have been married for four years and are expecting their first child, who is due in November. Though many American couples at this stage in their life purchase a condominium or a home in the suburbs, the Bauges, on the hand, simply aren’t in the mood to buy. Instead, they’re renting a one-bedroom, luxury high-rise apartment in downtown Chicago.
“We are willing to pay a little bit of a premium for flexibility and convenience,” according to Mr. Baugues, 34, who is a developer at a San Francisco-based tech firm. “It just feels at this point that we’re locking ourselves into something that we’re not ready to do,” Bagues states in regards to purchasing a home.
The sentiment is widely shared by renters across the country, especially in other metropolitan areas such as Philadelphia. In fact, there are a number of people thinking like the Baugueses, which is a big reason why downtown apartment landlords are having their best year in decades.
The occupancy of luxury, high rise apartments continues to steadily rise despite grim predictions from skeptics, who at one time thought these luxury rentals would be impacted by the cooling effects of a recent, sudden construction boom which has added thousands of units to the market.
However, it’s easy to see why these conveniently located, luxury units are in such high demand. Stories like the Baugueses’ paint an all too common picture. The fact is, many 20 and 30-somethings are postponing owning in favor of renting.
Many simply have no desired to be physically and financially tied down by a mortgage. Some new renters have recently relocated, and enjoy the freedom of working remotely with the flexibility to live just about anywhere. Others choose to rent in an effort to save for a down payment on a home in a lending environment that is now much tighter than it previously was in the pre-economic crash days.
Similar to Chicago, luxury apartments in Philadelphia, especially units in the most desirable of locations, are always in high demand due to the flexibility and convenience they provide. However, many people assume the rent for these unit are out of their budget. However, there is absolutely no harm in renters attempting to lower their monthly rent, or even negotiate a lower security deposit or a payment plan.
Landlords understand these properties are in high demand. However, they much rather rent these units to reliable renters who have negotiated their rent as opposed to irresponsible tenants. In fact, renters are encouraged to develop a good working relationship with their landlords or property management company.
Renters can enjoy the sophisticated style, comfort, and convenience of renting a luxury unit without the hefty price tag by negotiating the right price!