Episode•February 17, 2022•44 min

Rental Secrets with Justin Pogue | Ep. 89

Justin Pogue sits down with Tiffany to spill some real secrets on how rental markets work, and what you as a renter need to know before entering any lease agreements. About Our Guest Justin Pogue is an award-winning author and real estate consultant. His book, Rental Secrets, has already helped so many people around the country. FOX News, The Mercury News, SFGate, Realtor.com, and ApartmentTherapy.com have all featured his insights for the benefit of their audiences. Since 2003, he has developed and managed apartments, rental homes, and student housing across the United States. Justin holds a degree in Economics from The Wharton School at the University of Pennsylvania, as well as an MBA from The Darden School at the University of Virginia. Connect with Justin Instagram: @rentalsecrets Facebook: https://www.facebook.com/rentalsecrets/ Twitter: https://twitter.com/RentalSecret Connect with Tiffany on Social Media Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
Landlords define 'market' narrowly; renters can redefine it to negotiate better
Landlords compare only similar properties within ~1-1.5 miles; your market may include areas near your job or other comparable options
Present concrete alternatives and vacancy costs to give leasing agents ammunition to take to decision-makers
Even large corporate landlords can negotiate when shown real market data
2
Rent timing dramatically affects pricing—late fall/winter offers the best deals
Demand peaks late spring/summer due to graduations and school-year moves; landlords charge premium rents then
Late fall/winter sees ~80% fewer renters, creating discounts up to 7%
Lower starting rent compounds over time through smaller future increases
3
Amenities are priced into every unit regardless of usage—only pay for what you'll use
Costs of pools, gyms, dog parks are divided across all units via mini-pricing
Tour on weekends to see real amenity usage before signing
The best-value apartments often have fewer amenities you actually need
4
Always get receipts and avoid cash/money order risks when paying rent
Cash belongs to whoever holds it; never pay rent in cash
Money orders should have landlord name filled in immediately
Checks provide canceled-check proof; request receipts for every payment method
5
Ask questions and understand trade-offs—leasing agents steer you without revealing cheaper options
Questions like 'first or second floor?' eliminate cheaper units without disclosure
It's acceptable to request units farther from amenities for lower rent
Fair housing laws prevent steering, but agents can ask questions that lead you to self-select

Intro

Tiffany interviews Justin Pogue, author of Rental Secrets, about the hidden mechanics of renting and how tenants can negotiate better deals and avoid common pitfalls.
Justin Pogue is an award-winning author and real estate consultant who has developed and managed apartments, rental homes, and student housing since 2003. He holds degrees from Wharton and Darden and has been featured on FOX News, Realtor.com, and ApartmentTherapy.com.

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– Why Rental Secrets Exist

No financial literacy or renting classes exist in school. Real estate bookstore sections contain only books for owners and investors, despite 43+ million renter households paying half a trillion dollars annually.

There's no really discussion of the mechanics of renting. Why do landlords do what they do?
– Justin Pogue

– Understanding 'Competitive With the Market'

Landlords define market as a 1-1.5 mile radius around their property, comparing only similar amenities and finishes. Your market (near your job, across town) may be completely different.

Your definition of market is much broader than their definition of market is.
– Justin Pogue

– How to Negotiate Rent Successfully

Gather pricing from communities you consider comparable, even if outside the landlord's narrow market. Present data showing vacancy costs if you move out.

This is the marketplace you're competing in. And I get to define the marketplace that you're competing in.
– Justin Pogue

– The Real Cost of Vacancy for Landlords

Unlike inventory that holds value, an unrented apartment loses $30/day on a $900 unit permanently. Landlords have a bias toward action because lost rent can never be recovered.

Every day that passes is a day of rent that they will never be able to get back.
– Justin Pogue

– Best Times to Rent for Maximum Savings

Late spring/summer sees peak demand from graduates and families. Late fall/winter offers discounts up to 7%, with fewer renters creating leverage. Lower starting rent means smaller future increases.

Your best bet is late fall into winter.
– Justin Pogue

– Where to Find Apartments and Verify Claims

Craigslist avoids paid ranking bias. Talk to current residents about maintenance responsiveness. Tour the neighborhood at different times to verify parking, noise, and amenities.

Come back at five o'clock. See if there really is street parking.
– Justin Pogue

– Amenities: Don't Pay for What You Won't Use

Amenity costs are divided across all units. Tour on weekends to see real usage. The cheapest, most satisfying apartment Tiffany ever had had no pool, gym, or dishwasher.

Nine times out of 10, that's not going to happen. You're going to end up paying for the same gym membership plus the added amount in rent.
– Justin Pogue

– Ask for What You Want—Trade-offs Are Hidden

Leasing agents ask questions to eliminate units without revealing cheaper options. It's acceptable to request units farther from amenities. Fair housing laws prevent steering, but agents can lead you to self-select.

It is perfectly acceptable to ask for whatever you want and need. The person, the leasing agent is not in charge of your budget or your finances.
– Justin Pogue

– Websites Don't Show All Available Units

Property managers may list only a few units online. Scarcity mindset is manufactured. Always ask questions and tour in person.

– How to Pay Rent Safely

Never pay cash. Fill in landlord name on money orders immediately. Avoid credit/debit card convenience fees up to 5%. Always get receipts. Checks provide canceled-check proof.