HOUSTON – These days, it might seem like there's a new apartment building going up on every street corner in the Inner Loop, and although the local economy might have taken a hit with the downturn of oil and gas, many new rental projects have persisted.
"When you're driving around Houston now, especially inside the Loop, everything looks completely different than it did even three years ago," said Realtor Brittany Taggart, of Urban Leasing and Real Estate. "Places that were just a small lot (are) now a huge, mid-rise apartment complex."
In September, occupancy rates dipped to 89.4 percent -- a sharp decline from 91.2 percent occupied in September of the previous year, according to a report compiled by Apartment Data Services.
The same report shows more than 17,000 new units ready for move-in as of September 2016 — only about 18 percent of which were occupied at the time the report was published.
Real estate agents said a downturn in the oil and gas industry is partly to blame.
"I think there are a lot of folks that planned to relocate and move here from other states and cities that haven't quite taken that plunge yet,” Taggart said.
But a glut in the apartment rental market means complexes are competing with one another, and offering a variety of enticing specials to lure renters.
"(Luxury apartment complexes) are offering insane specials right now,” Taggart noted. “Anywhere from one month to even three months free. They're offering iPads, they're throwing iWatches at you, TVs (and) Visa gift cards."
One such project is Market Square Tower [view photo tour] in downtown Houston, a luxury high-rise apartment that boasts the tallest swimming pool in Texas — suspended 42 stories above the ground, off the side of the building.
Like other new properties, Market Square Tower is offering big incentives, too: half-off rent for the first six months with a 13-month lease agreement.
Realtors caution that although introductory rates may be enticing, renters should be prepared to write a higher rent check when the deals expire.
"Those specials are definitely helping you up front, (but) long term ... again you can still negotiate, and see what you can do, (but) expect that higher rate,” Taggart said.
So, what does this mean if you're renewing a lease?
One woman, Lacy, knows doing some research can make a big difference when it comes to negotiating a renewal. When the lease at her Upper Kirby apartment was up this summer, management wanted to increase her rent, even though she noticed a lot of empty units in her building.
"I was not happy,” Lacy said. “So I called around other complexes to see what specials they offered."
Lacy also checked her apartment complex’s website and saw much lower rates advertised than what they were offering her for the same size and style as her apartment. So she asked for a discount. And she got one.
Lacy said she negotiated a rate that was about $200 lower, and she was able to secure a storage unit at her property for a discounted rate. She still agreed to a longer lease.
“Before you renew, do your homework," Lacy said. "Know the occupancy rate of your apartment. Know if you want to switch to a two-bedroom versus a one-bedroom."