O.C. rent increases becoming a rarity

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<a href="http://lansner.freedomblogging.com/2008/10/13/oc-rent-increases-nearly-flatlined/4555/ ">http://lansner.freedomblogging.com/2008/10/13/oc-rent-increases-nearly-flatlined/4555/</a>
 
I don't know much about the rest of OC, but I do know my apartments in Costa Mesa and the Irvine Apartments have stagnated for quite a while. Some have even slid back. Its not as bad as it seems, people just don't have as much money/credit/cashflow as they used to. You have to roll with the punches, I have frozen my rents to help a few long time residents.

Anyways good luck

-bix
 
The competition isn't there anymore either. During the bubble, rentals were steadily removed from the pool for sale and rentals that were listed didn't last. I now see rental signs staying up longer and longer which is what will give people a chance to see available rents again.



It's a very different discussion between landlord and tenant when the tenants sees rentals disappear in a week or less and when the tenant sees rental signs for a month or more on the street.
 
[quote author="No_Such_Reality" date=1223941653]The competition isn't there anymore either. During the bubble, rentals were steadily removed from the pool for sale and rentals that were listed didn't last. I now see rental signs staying up longer and longer which is what will give people a chance to see available rents again.



It's a very different discussion between landlord and tenant when the tenants sees rentals disappear in a week or less and when the tenant sees rental signs for a month or more on the street.</blockquote>
It's a lot of lost income when the rental sits for months at a time.
 
[quote author="CalGal" date=1223945394][quote author="No_Such_Reality" date=1223941653]The competition isn't there anymore either. During the bubble, rentals were steadily removed from the pool for sale and rentals that were listed didn't last. I now see rental signs staying up longer and longer which is what will give people a chance to see available rents again.



It's a very different discussion between landlord and tenant when the tenants sees rentals disappear in a week or less and when the tenant sees rental signs for a month or more on the street.</blockquote>
It's a lot of lost income when the rental sits for months at a time.</blockquote>


Tell me about it! I've had a vacant unit in my duplex since mid August! The loss of rent plus a costly rehab...ouch!
 
Until last April, I was living in a private party 2 bedroom rental in University Park that was $2,000/month. The landlord sent me a notice of a rent increase and said his R/E agent had told him rents were increasing. No negotiation possible, even though I sent him several comps at lower prices. That, combined with the overall disrepair of the unit, the ancient, avocado green oven (circa 1970) and the noisy college-student neighbors, helped me decide to move to a better place. A bit more rent, but space for a second car in the garage (or, in my case, lots of stuff) and an extra bedroom. Nice and quiet, too. Since I am still in the same neighborhood, I drove past the old place once in a while to observe the "for lease" sign out front. He was asking $2,300/month It was there in April...May...June...July... About August, he backed off on the rent asked. Back to the $2,000/month I had been paying. The sign was removed in late September, but I don't know what the final rental price was. It's clear that when you add up the several months of lost rental income and the Real Estate agent's "finders fee," the landlord must have lost out big-time.
 
Illini,

Yep, you get alot of agents talking sunshine up these people's butt and they major bad decisions. The owner must really not that smart to even check up.

good luck

-bix
 
Shouldn't rents start going down or staying flat for a few years. The fact that anyone with a pulse could "buy" a house meant a lower rental inventory. The traditional buy a few homes that were cash flow positive and then rent them out turned into Buy and flip, then repeat.



Not to mention there are is a ton of new rental inventory that has been added over the last 2 years.
 
[quote author="GoIllini" date=1223977863]Until last April, I was living in a private party 2 bedroom rental in University Park that was $2,000/month. The landlord sent me a notice of a rent increase and said his R/E agent had told him rents were increasing. No negotiation possible, even though I sent him several comps at lower prices. That, combined with the overall disrepair of the unit, the ancient, avocado green oven (circa 1970) and the noisy college-student neighbors, helped me decide to move to a better place. A bit more rent, but space for a second car in the garage (or, in my case, lots of stuff) and an extra bedroom. Nice and quiet, too. Since I am still in the same neighborhood, I drove past the old place once in a while to observe the "for lease" sign out front. He was asking $2,300/month It was there in April...May...June...July... About August, he backed off on the rent asked. Back to the $2,000/month I had been paying. The sign was removed in late September, but I don't know what the final rental price was. It's clear that when you add up the several months of lost rental income and the Real Estate agent's "finders fee," the landlord must have lost out big-time.</blockquote>




I bet I'll be able to share a similar story soon, except mine might have an even more dramatic ending.



Our lease just went month to month, so we did some research on current prices in our neighborhood. Yep, definitely lower than what we locked into a year ago. We approached our landlord with the information.



The response... "I really want you to stay, but I have an ARM that just adjusted up and I actually need to raise your rent." Ummm, OK, I guess WTF pricing just because that's how much someone "needs" to get in order to make their desired profit is not limited to would be sellers. We said thanks, but no thanks and gave notice on the spot.



I fully expect our landlord to list at a crazy high rent, even though the exact floor plan has been sitting vacant for months now just a couple of streets over and at less than we've been paying.



Since the owner about popped a gasket when our rent check ended up sitting on someone's desk at their bank for a couple of extra days instead of being deposited to their account one month, I'm wondering how they will make it when they have no rent payment at all coming in?



It will be interesting to watch from my much nicer, but less expensive, new rental place.
 
^^^ Ax,

Did you politely explain this? I'm guessing that the genius didn't exactly try to work with you or even think to look around....

Wow, some people just don't really understand...

-bix
 
Hmmm does that mean I should think about lowering rent for my tenants. I am renting out a 2/2 in westpark for about $1900 a month right now.
 
[quote author="Shooby" date=1224241314]Hmmm does that mean I should think about lowering rent for my tenants. I am renting out a 2/2 in westpark for about $1900 a month right now.</blockquote>


You can either be in front of the curve, or you can be behind it.
 
Actually, can you guys stop over at the <a href="http://www.irvinehousingblog.com/forums/viewthread/3211/">When is the best time to buy thread</a> and explain to Columbus who owns who when the landlord signs a new one year lease with a new tenant.
 
[quote author="Axiom" date=1224218978][quote author="GoIllini" date=1223977863]Until last April, I was living in a private party 2 bedroom rental in University Park that was $2,000/month. The landlord sent me a notice of a rent increase and said his R/E agent had told him rents were increasing. No negotiation possible, even though I sent him several comps at lower prices. That, combined with the overall disrepair of the unit, the ancient, avocado green oven (circa 1970) and the noisy college-student neighbors, helped me decide to move to a better place. A bit more rent, but space for a second car in the garage (or, in my case, lots of stuff) and an extra bedroom. Nice and quiet, too. Since I am still in the same neighborhood, I drove past the old place once in a while to observe the "for lease" sign out front. He was asking $2,300/month It was there in April...May...June...July... About August, he backed off on the rent asked. Back to the $2,000/month I had been paying. The sign was removed in late September, but I don't know what the final rental price was. It's clear that when you add up the several months of lost rental income and the Real Estate agent's "finders fee," the landlord must have lost out big-time.</blockquote>




I bet I'll be able to share a similar story soon, except mine might have an even more dramatic ending.



Our lease just went month to month, so we did some research on current prices in our neighborhood. Yep, definitely lower than what we locked into a year ago. We approached our landlord with the information.



The response... "I really want you to stay, but I have an ARM that just adjusted up and I actually need to raise your rent." Ummm, OK, I guess WTF pricing just because that's how much someone "needs" to get in order to make their desired profit is not limited to would be sellers. We said thanks, but no thanks and gave notice on the spot.



I fully expect our landlord to list at a crazy high rent, even though the exact floor plan has been sitting vacant for months now just a couple of streets over and at less than we've been paying.



Since the owner about popped a gasket when our rent check ended up sitting on someone's desk at their bank for a couple of extra days instead of being deposited to their account one month, I'm wondering how they will make it when they have no rent payment at all coming in?



It will be interesting to watch from my much nicer, but less expensive, new rental place.</blockquote>


The one rental in my neighborhood has no taker eventhough plenty of lookers. The sign is still on.
 
[quote author="biscuitninja" date=1224223372]^^^ Ax,

Did you politely explain this? I'm guessing that the genius didn't exactly try to work with you or even think to look around....

Wow, some people just don't really understand...

-bix</blockquote>




Update:



It's nice to be in demand as a renter.



The owners did come to their senses and offered us a fairly decent deal if we would agree to stay. Since the new place is a better fit, and a better deal; we said no.

We weren't above using our improved position to renegotiate a few details we weren't totally happy with on the new rental though.



I think we're in a very good place right now.
 
I read this several days ago on the OCR:



<a href="http://lansner.freedomblogging.com/2008/10/22/which-2-oc-cities-will-see-rents-jump-12/4792/">http://lansner.freedomblogging.com/2008/10/22/which-2-oc-cities-will-see-rents-jump-12/4792/</a>



<blockquote>Rent hikes at O.C.?s biggest complexes could hit double digits in 2011, according to one industry expert. But can you guess which areas will see the highest increase?



Give yourself a gold star if you said the decidedly not-upscale towns of Buena Park and Costa Mesa.



By Axiometrics Inc.?s numbers, Buena Park will see rents jump 12.2% that year with Costa Mesa close behind at 12.0%. That?s huge. For instance, this year Buena Park?s big complex rents are expected to rise 3.4% while Costa Mesa rentals could decline 2%, says the apartment analytics firm. (See chart for Axiometrics full forecast for this year and 2011!)</blockquote>


Does this mean they expect rents to back up 25% between now and then?



Do these folks have any credibility at all?
 
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