Remember when the home buying boom was in full swing and landlords were trying every trick in the book to fill up their vacant units? What a difference a few years makes. Even though house prices are incredibly low, it’s difficult for potential buyers to qualify for loans. That makes them renters. It also makes them increasingly desperate to find a place to hang their hat as rental vacancies plummet and landlords can afford to be choosier.

Here’s an interesting tidbit. In the first quarter of 2010, data tracker MPF reported 53% of apartments offered some sort of inducement to attract tenants. You know the kind we’re talking about. You’ve probably seen the signs. A free month’s rent when you move in. Maybe two. Forget about the security deposit. Landlords were forced to get creative in order in order to keep their units occupied. Everyone was buying and no one was renting.

USA Today offers a recent quote from Charlie Biter, a man who manages 2,000 units in the Nashville area. “Back then, everybody was being creative to bring renters in, but now I’m not aware of any units offering concessions.”

The latest numbers from MPF back up Biter’s assessment. The first quarter of 2012 saw the percentage of apartment units nationwide offering some kind of move-in incentive had dropped to just over a 25%.

And it’s not just that landlords are dialing back the inducements. They’re getting more selective too, requiring stricter background checks and some even asking for recommendations. And negotiating rent? Forget about it. They don’t have to and they probably won’t. Rental rates are rising around the nation, inching up regularly as the forces of supply and demand battle it out.

While tenants are surely feeling the financial squeeze, these things run in cycles and eventually home-buying will come back into vogue, which will ease the pressure on the rental market. Of course, landlords don’t want the pressure to ease at all. They’re loving this new reality and hope it doesn’t end any time soon.

Thinking about getting into income property investing? Come on in. The water’s fine. If you can afford the down payment to purchase your first property, it’s a no-brainer.

The AIPIS Team

Flickr / Loozrboy