Bermudians are being frozen out of the local rental market as landlords compete to get the highest rents possible for their properties.

And with international companies willing to pay as much as $2,000 for a modern one bedroom apartment, those involved in the industry say this trend will continue for a long time.

Young couples with aspirations to move out of the family home are choosing instead to stay with their parents because there are fewer one and two bedroom apartments available between $800 and $1,200.

In its Quarterly Information Bulletin on Housing released in June 1996, the Bermuda Housing Corporation examined this trend.

"Bermuda has unique characteristics with regard to housing,'' the report said. "Because non-Bermudians are restricted in ownership of real estate and because we have a thriving international business sector, employing of necessity a significant number of non Bermudians, we have developed a two tier rental market. One for locals and the other for expatriates.'' The BHC report said that many expatriate employers subsidised some or all of their employees' rent.

As a consequence there were 11,520 occupied rental units identified in the 1991 Housing Census. Of those 32 percent 3,686 houses were occupied by non-Bermudians.

Bermudians generally rented the lower priced units while non-Bermudians were usually to be found in the upper priced apartments.

Marilyn Omar, rental administrator at Bermuda Provident Company, said a standard one-bedroom apartment, regardless of location, went for between $950 and $1,200.

However, items such as dishwashers, air conditioning, large walk-in closets, washer-dryers and decorative tiles all increased the rent a landlord would charge.

Ms Omar said that although the Annual Rental Value rate may suggest lower rents for properties, the landlord and the tenant ultimately decide what the price will be.

"We have seen a trend in the last five years where exempted companies are prepared to pay 50 to 80 percent of their executives' rent,'' she said. "In other cases they pay it all.

"As a result, landlords who in many cases are paying off a mortgage themselves, want to get it paid off with a little extra.

"That means the executive market is experiencing more activity than the resident one.'' Ms Omar said that overall the effect of international companies' willingness to pay high rents for apartments with all the modern trimmings, had been to push rents up.

"From a landlord's point a view they are trying to pay off a mortgage and they find their executive clients more reliable in some instances,'' she continued.

Bermudians frozen out of rental market For the young Bermudian, just out of university in search of a first apartment, Ms Omar suggested sharing with a friend or moving back in with parents.

"But for many of our clients the prospect of paying $1,500 for a one bedroom or $2,000 for a two bedroom is unappealing, so many of them move back with their parents until they have saved a downpayment for a home.

"There are still some reasonable one and two bedroom apartments available but they are not advertised and depend on word of mouth.

"Often they are people who have paid off their homes and want a little extra cash but they are becoming more and more rare.''