The Truth Behind Fluctuating Rental Rates
If you are working with a transferee who is considering renting, you need to educate him/her on the rental rate process. As rates change daily, your client needs to be prepared to act quickly.
The rental market uses LRO Software, which automatically adjusts rates based on supply and demand. Leasing agents input each transaction into the software’s database. The information is automatically shared with other users in the area, which causes rates to adjust according to day to day market conditions. When supply is low, the software increases the rental rates. When supply is high, rates decrease.
Across the nation, this software is used in approximately 50% of rental markets. In the Twin Cities, software use is closer to one third of rentals.
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