Like homebuyers, renters now face bidding wars

The licensed practical nurse could not afford a $400 increase in her rent. So she started looking for a new place.

She wanted to rent a three-bedroom house for herself and her two children and could pay up to $1,400 a month.

She had always paid her rent on time and her landlord had written her a letter of recommendation. But as she searched in Philadelphia and Delaware County, Pennsylvania, she received rejection after rejection, said Liora Israel, a real estate agent with Philadelphia-based eXp Realty who was helping her.

“In two weeks, I showed my client 44 houses and applied for about 30,” Israel said. “And that’s not an exaggeration.”

Her client lost out to people who applied before her and to others willing to pay more than the advertised rent. For a property listed at $1,200 per month, the owner went with someone who offered $1,700.

“I literally broke down and cried with my client,” Israel said.

In the recent competitive market, homebuyers have often found themselves in bidding wars over a limited supply. But rental demand is also strong and potential tenants are now scrambling, especially those looking at the bottom of the market.

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