The rental market is currently in a state of flux. With the continued scarcity and increasing demand for rental properties, prices are once again rising and rental properties are increasingly being outbid. The demand for rental housing increases sharply towards the summer, partly due to the influx of (international) students and young professionals looking to settle in the big cities.

Overbidding increasingly common

Recent reports indicate that overbidding on rental properties is becoming more common. Tenants try to increase their chances of getting a property with higher bids, resulting in final rents higher than the original asking prices. This causes the asking prices listed online to give a distorted picture of actual rental costs. In some cases, properties are deliberately priced lower to attract more interested parties, then engage in competition and drive up the price further.

Perfect storm on the rental market

Rising rents are the result of a combination of factors. The tightness of the housing market, inflation and an increase in the number of home seekers create a competitive situation. Students and first-time buyers who stick to a specific budget and certain requirements often come to the conclusion after several viewings that their expectations need to be adjusted. Also, more and more home seekers are coming to the realization that a rental agent is the increased chance to find a suitable rental property.

What does this mean for tenants?

For house seekers, this means that flexibility and speed are essential in finding rental housing. It is important to realize that market prices may differ from initial asking prices and there should be room for negotiation. In addition, it engaging a rental agent or narrowing the search criteria help in finding a suitable home.

Thus, the rental market remains dynamic and unpredictable. With the summer months approaching and a growing number of interested parties, the pressure on the market remains high and rents are unlikely to drop anytime soon. Therefore, home seekers do well to enter the market prepared and realistic to avoid surprises.