Bidding wars for rentals: How to outsmart your competition for an apartment
- Bidding wars for market-rate rentals are not only allowed but increasingly common in NYC
- Increasing your offer by 2 to 5 percent over the annual asking rent can put you in the lead
- Another tip: Ask yourself what the apartment is worth to you—and bidding accordingly
Bidding wars in NYC's rental market are a result of fierce competition for apartments. Here's how to improve your chances of winning.
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Bidding wars for rental apartments are a result of the red-hot competition in the New York City rental market. If you're searching for a rental and keep losing out in bidding wars, you may have questions, like whether this practice is legal or how much you need to bid to win.
It's a good idea to understand how these negotiations work and what you can do to put yourself in a better position to land an apartment.
“When the market is this fast-moving, you are bound to see bidding wars, especially for competitively-priced or unique apartments in popular locations,” says Gary Malin, chief operating officer at Corcoran.
Erin Wheelock, a broker with Keller Williams NYC, agreed, pointing out that the FARE Act took broker fees off the table since landlords are now required to pay the agents they hire. "So it's really all about the price now," she said. "We are personally seeing everything from $2,000 to $25,000 apartments go into bidding wars, so it's key to be prepared with paperwork and to get that offer in quickly."
[Editor's note: A previous version of this article was published in June 2023. We are presenting it again with updated information for April 2026.]
Below are answers to questions about bidding wars for rentals, so you can stay on top of the competition.
1. Are bidding wars for rentals legal?
The simple answer is yes. Market-rate apartments make up just over 40 percent of the city’s rentals and are privately owned and unregulated, meaning landlords can charge whatever the market will allow. These are the apartments where bidding wars break out.
Landlords of rent-regulated apartments can’t hike rents in the same way.
2. When would you offer more rent?
Attending an open house can indicate whether the apartment is popular. If so, be prepared for a bidding war. “As soon as the landlord gets more than one offer, they have the leverage,” Wheelock said.
The actual timing of a request for higher bids depends on how the landlord or management company operates. If a landlord receives multiple applications on the first day the apartment is available, they'll probably ask for best-and-final offers from everyone and approve a renter based on those offers and the strength of the supporting application.
Some landlords will only process one application at a time, but if they know there are multiple applications, they might ask a prospective renter to increase their offer. Other landlords or brokers will submit multiple applications at once.
"You can assume that the point at which a landlord would ask for a better offer would be after you have submitted your application but before you have been approved," said Evan Osur, an agent at Living New York.
That can leave some renters feeling that a landlord is raising the rent based on your ability to pay more. However, the brokers we spoke to said that is unlikely. More likely, you are dealing with a representative for the landlord. If these agents or brokers see that the apartment can generate a higher rent for the landlord, they will try to get it, but it is not based on your particular finances.
Also, "the landlord will never create a lease, have you sign, and then subsequently increase the price," Osur said.
3. How much more should you offer?
The percentage increase in the rent you offer will depend on whether the asking rent is under market. That's where some research comes in handy—try to find out what similar apartments in the same area are renting for by searching a listings website. If the asking rent is low, you may choose to offer a higher amount.
The rent increase you offer will vary depending on whether it is a studio asking $1,700 or a much pricier place. If you're willing and able to pay more, "that little extra bit can be make or break,” Wheelock said.
Osur said a reasonable increase is typically between 2 and 5 percent of the advertised rent.
"You can always tell if something is in high demand by looking at the number of saves on StreetEasy–that's always a good barometer," he explained. So, if 170 users have saved the rental in a week, you might consider increasing your offer by 5 percent.
Another approach is to offer just a bit over the asking rent. "Perhaps $25 or $50 as more of a symbolic gesture," said Brian Hourigan, senior managing director at BOND New York. This is particularly effective if you feel your application and financial qualifications make you a strong candidate.
One other factor to consider is what the apartment is worth to you. Recognizing that continuing your apartment search can have an emotional toll, Wheelock recommended asking yourself: “How much is it worth not to have to deal with this process anymore?” That—and your budget— should be your ultimate guide.
And renter beware: "Since the implementation of the FARE Act, landlords have recouped their costs by raising rents," Osur said. "One way or another, the broker has to get paid on properties where they are involved. This new expense that the landlord has to incur makes it less likely that they will negotiate off their ask."
5. What do bidding wars say about the landlord?
When entering a bidding war to buy an apartment, you don't expect to have an ongoing relationship with the seller. That's not the case with a rental, where you will have to deal with the landlord regularly.
According to Wheelock, most landlords rely on a representative to do these negotiations so they aren't viewed as the "bad" guy. And if you're uncomfortable with how the process is being managed, you can, of course, walk away.
But a landlord who enters into a bidding war isn't necessarily a negative sign. More telling is whether they respond promptly and efficiently to questions or maintenance concerns. Be sure to do your homework about what it is like to live in the building and see what other tenants have to say.
"Open and transparent communication is what typically makes renters feel like they have a landlord who cares and they can trust," Osur said.
5. How do I avoid a bidding war for a rental?
The best way to beat the competition is to have a strong application ready to go. That includes having a good credit score. You also want to be first in the door. Don't wait until the weekend to visit an open house—try getting in there earlier on a Thursday or Friday.
Being fast and first, however, may not be enough.
One tip is to offer to start the lease early. Can you move within a few days of seeing the apartment? Landlords don't want their apartments sitting empty.
"The typical market allows for anywhere between 15 to 30 days for the expected move-in date of a new tenant; an applicant can sometimes trade an immediate occupancy for their application being considered first," Hourigan said.
The summer is normally the busiest time in the rental market, meaning landlords usually want leases to start and end between May and August. If you are open to a 16- or 18-month lease term in the winter months, you might be able to leverage that flexibility.
In addition, rents are highly location-specific, so consider looking in less in-demand neighborhoods with greater inventory and cheaper deals.
Finally, depending on your finances, it may make more sense to buy. If your main obstacle is coming up with the required 10 to 20 percent down payment, you may qualify for first-time buyer loans and programs available to New Yorkers. You may also want to read "Buying for the first time in NYC? Be sure to prep your finances first" for more insight.
6. Does it help to have an agent?
In a competitive market, having an agent can give you an edge, Malin said. A good agent knows where the deals are, what comparable apartments are renting for, and can guide you on how much to increase your offer and negotiate on your behalf. At the very least, they can prepare you for what to expect.
"You're only in the market today because you need to be in the market today. Brokers are in the market every day, and they understand what's going on," he said.
A broker might also know of apartments that aren't yet listed or are in a building you might not have considered, he added, noting that they can get real-time alerts and can get you in to see places before the competition.
In this scenario, you will likely be asked to pay a broker's fee to compensate an agent for doing this legwork (this is permissible under the FARE Act). For NYC newcomers or renters who need an apartment fast or have other constraints, it often make sense to go this route.
7. Are rental bidding wars here to stay?
Demand for NYC rentals shows no sign of slowing down, so expect bidding wars to continue for the foreseeable future.
Meanwhile, Malin advised keeping an eye on the vacancy rate. "In New York City, the difference between a 1.5 percent vacancy rate in terms of bidding wars and price negotiability versus 2.5 percent is significant," he said.
This is where Brick’s rental market reports can be handy. In addition to the vacancy rate, these tell you what median rents are and what leasing activity is like, giving you a sense of how much (or how little) negotiability renters have.
—Earlier versions of this article contained reporting and writing by Emily Myers. This article was updated for April 2026 by Evelyn Battaglia.
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