Desperate sellers turn to rental market

[flashl]

Glut making it tough to raise rent

NEW YORK—Renters may be the biggest winners in the current housing slump, especially in places like Florida, Las Vegas and Southern California, that have thousands of vacant for-sale and foreclosed homes and condos on the market.

Apartment vacancies are edging up in many areas of the country as frustrated sellers instead try to rent out their homes and condos in once red-hot housing markets. And that is making it harder for landlords to raise rents.

In the toughest markets, apartment owners are even offering lease incentives to snag renters.

This "shadow market" of investor-owned homes and condos accounts for almost half of the rental stock, and attracts displaced homeowners more often than your typical apartment renter.

Chicaco Tribune

Who woulda thunk, housing had a "shadow market".

[Warpy]

1. The other story is the vulnerability of these renters to foreclosure

because some strapped owners are taking that rent money and simply not using it to pay the mortgage. When the property goes into foreclosure, the tenant has no recourse and loses both the security deposit and the time left in the paid for month. They're out on the street even though they were financially responsible and had a lease on their side.

[raccoon]

2. Excellent point, and a caveat to would-be renters. nt

[TexasBushwhacker]

3. Yup, just read about a case like this

A family was evicted without warning. The only new rental property they could find that they could move right into didn't allow pets. So they had to take their two dogs to the Humane Society. It's just not right. I'm sure the evicted family could sue the owner, but good luck finding them. If you ask me, this amounts to theft though. The owners should be criminally prosecuted if they are just taking the rent money and not paying for the property.