“I just found the perfect short-term apartment! But wow, it costs WHAT?”
Have you been relocated by your company, in between selling and buying a home, or assigned an extended assignment elsewhere? If so, you probably have some experience with researching and booking furnished extended stay (>30 days) rentals and have a sense for the market rates for these temporary accommodations.
For the largest market for furnished extended stay rentals, New York City, the process of searching for and booking a rental is a daunting task that comes with stress, frustration, and often, feelings of overpaying.
When you begin the search, you will notice that there is a plethora of options. You will find lots of housing providers in your target neighborhoods that offer varying types of furnished apartments.
Not surprisingly, the size of your desired furnished apartment is a driving factor in the monthly rate.
LocalBigwig.com, a NYC-based company that specializes in helping clients find and book furnished, extended stay housing, reports the current typical rental price ranges for furnished rentals in New York City as follows:
New York City
|Studio||$3000 – $4500|
|1 bedroom||$4500 – $6000|
|2 bedroom||$6000 – $7500|
|3 bedroom||$7500 – $9000|
Looking at year-over-year data, rental rates in NYC continue to rise.
A quick look at the Dec 2012 Manhattan Rental Market Report by MNS shows an 11% rise in rents across all unfurnished apartment rental types in NYC from 2010 to 2012. The vacancy rate for unfurnished rental apartments continues to be low at 1.59% as of Dec 2012, which motivates landlords to keep rental rates high.
The low vacancy rate and increasing rates in the unfurnished market significantly impact the furnished market and its prevailing rates.
Moreover, the cost of utilities continues to rise as well. The average price for electricity in NYC rose to about $0.19 per-kw-hr from about $0.17 from Jan 2006 to Jan 2011, but could double by 2014.
Another major factor in the rate is location. Neighborhoods such as TriBeCa and SoHo are in tremendous demand. There are numerous benefits to living in these desired neighborhoods, such as easy access to public transportation, shopping and dining options, and privacy. Keep in mind that rates are significantly higher in hot neighborhoods, even if the size of the furnished apartment is smaller.
So, how do you get the most value for your money? You need to do your homework, and find all of the providers in your target destination. In New York City, there are 100 professional providers, with inventory of 30 to 300 furnished rentals each. These providers offer very different value propositions, and you need to identify which one best fits your needs. In Brooklyn and Harlem, for example, a few housing providers offer no-frills rental units. These rental homes could still work for your purposes, but you would just need to find them.
As the global population becomes more mobile, demand for furnished extended stay rentals will continue to grow. Quickly finding the right furnished rental at a reasonable rate is more important than ever.