TIC : Rental Increase

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Gohabsgo_IHB

Gohabsgo_IHB

New member
<p>I live at Anacapa, renting a Plan G I think, 2 bedrooms/2 baths a little over 1,000 sq. ft. My last lease was for 9 months at $2,020. It is schedule to renew mid-December at $2,035.</p>

<p>That's a 0.75% increase or 1.00% annual increase! Not bad at all!</p>

<p>I think I get a lower rate increase because I've been there for a while now. I started renting in June 2005, so it's 2 and a half year. My rent started at $1,860, so that's a total increase of 9.4% or 3.7% annual wihch seems reasonable to me.</p>

<p>Anyone else living at Anacapa?</p>
 
I just got an email from IAC that if you renew your lease between now and February 28 you are entered in a drawing for free rent for up to 3 months (three winners). So not only are they not increasing rent much, they are trying to entice people to renew with a drawing. Interesting....
 
<p>Their increases are highly senstive to the demand for your floorplan in that particular community.</p>

<p>Threatening to walk does best when there is good supply, otherwise they might take you up on the offer...</p>

<p>SCHB</p>
 
I spoke to the Office at our IAC complex today and they reckon my increase might be 3-6% which will be $64-128 pm month...they said they will let me know for sure tomorrow...
 
<p><em>I spoke to the Office at our IAC complex today and they reckon my increase might be 3-6% which will be $64-128 pm month...</em></p>

<p>And you immediately reacted at how high that was and how many other apartments are around that you'll need to check out, right....</p>

<p>If not, you just tacitly confirmed that they'll be able to float a $100/month rise without pushback.</p>
 
I rented from the Irvine company for almost 2.5 years, 1250 sq. feet, one car garage(detached), Solana Complex





Started in July 2005 for $2250 with six month lease(resigned after 6 months)





Renewed in July 2006 for $ 2365 with a one year lease(5% increase)





In July 2007 they wanted $ 2430 (2.7 % increase) I went to a month to month at $2580. I gave notice last month and a few days later saw my unit on Craig's List for $2250. This indicated to me that they are seeing a slowdown in rents.





I just moved to Huntington beach and rented a 2150 sq ft. townhouse for $2600 with a two car attached garage in the sea cliff area.
 
no-such, they called me today and told me the increase is going to be $75 pm....



This puts me at $2220 which after doing a search on Craigslist puts me in the realm of a LOT of much nicer places in Irvine and not far off a nice SFR...of course it's not as simple as that, see all the above posts...



But IAC aren't doing me or themselves any favors.
 
<p>We are having to reduce rates to encourage lease renewal on our private leases. IAC is a monopoly with strong financial backing; it can afford to set rules even in a free market. I think it's an excellent marketing move for IAC to raise rents. The private landlords can benefit from it too.</p>
 
<p>It's a good business move for IAC to raise rates on a current tenant. They have volume and crunch odds. The initial lease is at market rate for a premium apartment property. From there, it's a matter for pushing the rate above inflation, but below the hassle factor that will churn too many. The 1st $100 raise probably less than 5% will move out. The 2nd $100 over market rate, and more will move, but still many won't and IAC get's to convert 50-75% of their rentals from market rate to $200 or more over market rate for an additional year of rental. If you move and stay in Irvine, there's an 80% chance that you just move to an IAC place at market rate. Or you move out and someone else moves in at market rate.</p>

<p>For a private landlord, it's different. They can push and they'll experience the same probabilities, however, they may or may not have the volume and financial cushioning to handle the churn.</p>
 
Somehow I believe IAC's rent increases is part of an overall strategy to keep the landprice / house price up for as much as, and as long as they can. Homeowners probably love the irvine Company right now since they are doing probably everything they can within their power to keep the price up. No other developers in OC/ Ca probably are willing and capable of doing so. While the people on the sideline waiting for the price to come down quickly probably hate them to the guts.
 
The IAC is just maximizing their revenue. As long as incomes hold up and people can afford the rent, the IAC will keep raising the rent. We will know we are in a local recession when the IAC has to drop rents to maintain occupancy. It will be a lagging indicator due to the long-term nature of leases, but the fact that rents are not rising at 5% strongly suggests we are at the beginning of a slowdown.
 
<p><em>"We are having to reduce rates to encourage lease renewal on our private leases</em>"</p>

<p>My lease on my current place is up in January. I rent a 800 sq ft, 1 bd / 0.5 ba for $1995 a month. Hey, this is Hollywood....it's expensive here ! But seriously, I know I can rent something similar for about $200-300 less if I go about 10 mins further out of the area. </p>

<p>I was considering asking my landlord for a $100 rental reduction for another 1 yr lease. Anyone think he'll bite ? BTW, he's a part time Realtard ! (sorry NIR, but I just can't stop using that word). When I first moved in, I asked him what kind of mortgage he had (because I was concerned about rent skimming). He assured me all was well as he bought in the late 90's. It's a great place, my own garage, C.A., only one wall adjoins the little house next door, no one above, extremely quiet and private, landlord is quick to respond to any issues and lives on property. I can't decide if I should stay here b/c it's 5 mins to work and perfect....or move to save money and sacrifice a bit of comfort (and GAS).</p>

<p> </p>
 
<p>Can't be 1/2 bath, may be 3/4 bath.</p>

<p>My LA clients are getting hit with $200 rent increases for 2-bedroom (1000 sq. ft) and the landlords are not budging.</p>

<p>Troop, I think housing cost in LA area is just outrageous. My LA clients can only wish they can work and live in OC for "good pricing".</p>

<p>I say sweet talk to your landlord is a way to go. Good luck. Since your landlord is a "realtard", he must know the rental market very well to ask for the increase.</p>
 
<p>SCHB, My bad...it's a 3/4 bath ....yes, I do have a shower !</p>

<p>NIR, Landlord hasn't floated any lease increase by me yet...I hope to head him off at the pass with my "rent decrease" suggestion ! I won't pay any more than I do now, so he'll be out a good tenant if he chooses to raise the rent. Craigslist has a ton of listings near me for 200-300 less. I'd be out of here if he raises. Thanks. </p>
 
<p>Dusting off an old thread, but thought I would give another update on IAC renewal strategy. We just got our renewal for our 3+2.5 townhouse at San Carlo Villa. We were at $2,397 this past year, our inital renewal letter was an increase of 3% to $2,475 --- I was able to talk them down only $25 to $2,450 or an increase of 2% for 9 or 12 month lease. Our increase was 5% last year. Market rate from rental-living.com for our model is $2,550. Clearly rental market is slowing down and they are giving some discounts.</p>

<p>I also have been in contact with Woodbury Place, and they are willing to go down to $2,515 on their Plan E townhome if you can move into a currently vacant model within 2 weeks. Market rate on that one is $2,590.</p>

<p>UPDATE: After my wife played hardball and got San Carlo throw in a free carpet cleaning, we decided to go for the 9 months at $2,450. I sure hope this is my last lease term.</p>
 
CK - i would highly recommend woodbury place - we looked at san carlo before ending up and woodbury place, the san carlo unit was no where near as nice as the woodbury place. Although moving is a pain in the ass.
 
qwerty --- agree on both points. See the update --- I've got enough pains in my ass already, moving was not another one we needed.
 
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