What's up with IAC's longer leasing terms?

NEW -> Contingent Buyer Assistance Program
they give you a lower rate the longer the lease is, but that just means you over pay for a longer period of time. last May (08) we signed a 1 year lease at woodbury place for 2,480 (+100 for dog rent) for a total of 2,580. I broke the lease in December because i was tired of paying IAC too much money and found a nice private rental for 2,300. I just checked the website and the rent is now 2,180 or 2280 with the dog rent, that is a full $300 cheaper, that is quite a price decrease in about 8 months.
 
[quote author="anteaterscientist" date=1232879840]It's lease renewal time again!



Get a good rental rate, but lease longer like for 16 months? Is it a good deal or bad?</blockquote>
I think they want to lock the rents for a longer term as they see the writing on the wall of rental rates coming down further in the near future. I wish i had signed a 6-month lease instead of a 12-month lease.
 
It's very smart on IAC's part.



January/Feb 2009 + 16 months = May/June 2010.



May & June are horrid times to find a new lease. By offering 16 months, they move you from a weak demand period to a high demand period which will allow them to retain pricing power in 2010.



Counter with the same rate an twelve months or lower rate and 20-24 months. The key is you want your lease renewal hitting in the mid-Oct to March timeframe.
 
Thanks and notes taken. The longer lease terms for a better rate made me weary...



My lease is up in March, just wanted to see how the rates were going... getting anxious!
 
[quote author="No_Such_Reality" date=1232880910]It's very smart on IAC's part.



January/Feb 2009 + 16 months = May/June 2010.



May & June are horrid times to find a new lease. By offering 16 months, they move you from a weak demand period to a high demand period which will allow them to retain pricing power in 2010.



Counter with the same rate an twelve months or lower rate and 20-24 months. The key is you want your lease renewal hitting in the mid-Oct to March timeframe.</blockquote>
This is what i've been doing with some of my long time tenants. I've decreased as much as 200 a unit to keep them in there. Honestly some people have been there quite a LONG time. Giving them a helping hand works very much in my favor.

-bix
 
We just raised the rents last month and expected one person to move out. She has 6 months left in her job with Washington Mutual. We have never really charged market rents, so I guess that's the reason. Just be nice to your tenants and they will stay.
 
I think a lengthy lease depends on your personal circumstances, in our case, the Office Manager gave me all the different rates for different lease periods, the least expensive was a 16 month obviously, so I negotiated $100 off that for an 18 month...



The reason being, we love our little Townhouse, we love the location - only 1.8 miles from work, a 6 minute commute- close to the Bike Trail and ultra quiet.



Plus we know all the maintenance Guys, a great crew and very friendly...we've already been here for 2 years, time flies!!



So for us it works.



I highly advise you to negotiate!!



On the other Paw, an 18 mth lease is pretty rediculous because I never know where I'll be from one week to the next the way things are going at work, but that's OK, 95% of the population is in the same position, I'm prepared.
 
[quote author="anteaterscientist" date=1232879840]It's lease renewal time again!



Get a good rental rate, but lease longer like for 16 months? Is it a good deal or bad?</blockquote>


Pure speculation here, but I think that they are trying to lock in current market rates for as long as humanly possible. I believe that before a 16 month lease is up, you won't think it's such a good rate afterall.



What have they done to your lease termination fees?
 
[quote author="WINEX" date=1232929220][quote author="anteaterscientist" date=1232879840]It's lease renewal time again!



Get a good rental rate, but lease longer like for 16 months? Is it a good deal or bad?</blockquote>


I believe that before a 16 month lease is up, you won't think it's such a good rate afterall.

</blockquote>


I agree 1000%



Rents can only fall in Irvine, Businesses are closing rapidly in both the Irvine Business and Manufacturing Districts, couple that with the fact that they have built a s**t load of new Apartment Buildings, like the ones on Jamboree between Main and Alton...



There are going to be a lot more People losing their Jobs and rising inventory available throughout 2009..



Problem is, we can wait to buy but we can't wait to rent, we have to live somewhere so most of us have been caught in a bad part of the Cycle when renewing, nothing much we can do about it... Just catch the falling Rent knife.
 
[quote author="PeterUK" date=1232949283][quote author="WINEX" date=1232929220][quote author="anteaterscientist" date=1232879840]It's lease renewal time again!



Get a good rental rate, but lease longer like for 16 months? Is it a good deal or bad?</blockquote>


I believe that before a 16 month lease is up, you won't think it's such a good rate afterall.

</blockquote>


I agree 1000%



Rents can only fall in Irvine, Businesses are closing rapidly in both the Irvine Business and Manufacturing Districts, couple that with the fact that they have built a s**t load of new Apartment Buildings, like the ones on Jamboree between Main and Alton...



There are going to be a lot more People losing their Jobs and rising inventory available throughout 2009..



Problem is, we can wait to buy but we can't wait to rent, we have to live somewhere so most of us have been caught in a bad part of the Cycle when renewing, nothing much we can do about it... Just catch the falling Rent knife.</blockquote>


I think that the best strategy would be to go month-to-month if possible, otherwise sign a 6 month lease. When the difference between your rent and market rent get large enough, then re-negotiate. Of course you have to be willing to vote with your feet if you are going to pursue that strategy.
 
[quote author="WINEX" date=1232961012][quote author="PeterUK" date=1232949283][quote author="WINEX" date=1232929220][quote author="anteaterscientist" date=1232879840]It's lease renewal time again!



Get a good rental rate, but lease longer like for 16 months? Is it a good deal or bad?</blockquote>


I believe that before a 16 month lease is up, you won't think it's such a good rate afterall.

</blockquote>


quote]



I think that the best strategy would be to go month-to-month if possible, otherwise sign a 6 month lease. When the difference between your rent and market rent get large enough, then re-negotiate. Of course you have to be willing to vote with your feet if you are going to pursue that strategy.</blockquote>


Well, with the Movers etc it cost me around $2000 to move here (from Laguna Niguel) plus month-month would be costing me $400 pm more...



But yeah, of course month-month or a 6 month may work better for other Peeps, it's up to the individual really.
 
[quote author="WINEX" date=1232929220][quote author="anteaterscientist" date=1232879840]It's lease renewal time again!



Get a good rental rate, but lease longer like for 16 months? Is it a good deal or bad?</blockquote>


Pure speculation here, but I think that they are trying to lock in current market rates for as long as humanly possible. I believe that before a 16 month lease is up, you won't think it's such a good rate afterall.



What have they done to your lease termination fees?</blockquote>




I'll probably get to see the new rate and draft lease w/ termination fee next month in Feb... will update when the info is available. I just overheard someone at the leasing office signing a new contract, which was 16 months.
 
[quote author="SoCal78" date=1232884448]I just got a $100/mo decrease for renewing with a 12 mo. lease with IAC.</blockquote>


Same here.
 
[quote author="PeterUK" date=1232962055][quote author="WINEX" date=1232961012][quote author="PeterUK" date=1232949283][quote author="WINEX" date=1232929220][quote author="anteaterscientist" date=1232879840]It's lease renewal time again!



Get a good rental rate, but lease longer like for 16 months? Is it a good deal or bad?</blockquote>


I believe that before a 16 month lease is up, you won't think it's such a good rate afterall.

</blockquote>


quote]



I think that the best strategy would be to go month-to-month if possible, otherwise sign a 6 month lease. When the difference between your rent and market rent get large enough, then re-negotiate. Of course you have to be willing to vote with your feet if you are going to pursue that strategy.</blockquote>


Well, with the Movers etc it cost me around $2000 to move here (from Laguna Niguel) plus month-month would be costing me $400 pm more...



But yeah, of course month-month or a 6 month may work better for other Peeps, it's up to the individual really.</blockquote>


Just for clarity, I believe the threat of finding another alternative is all that is necessary. The unemployment rate in this state is something like 9.3% right now, and it's not a good time to be renting apartments at above market rates. I believe that TIC will have more vacancies on their hands than they would like.



But on another topic, $2,000 to move from Laguna Nigel? That sounds a little high to me.
 
Do they even allow 6 months leases?? Mine is about to be up as well? What is the best thing to do? We could buy a condo which would be cheaper then our rent but I know it will drop in price. I really don't want 16 month lease because I agree its only going to go down. IAC month to month is usually a joke.
 
My IAC complex does not offer a 6-mo. lease. Last time, the shortest I could talk them into was 8 months. This time, the shortest was a year. Going mo-to-mo would cost approx $200 more/mo.
 
[quote author="No_Such_Reality" date=1232880910]It's very smart on IAC's part.



January/Feb 2009 + 16 months = May/June 2010.



May & June are horrid times to find a new lease. By offering 16 months, they move you from a weak demand period to a high demand period which will allow them to retain pricing power in 2010.



Counter with the same rate an twelve months or lower rate and 20-24 months. The key is you want your lease renewal hitting in the mid-Oct to March timeframe.</blockquote>


Exactly. They want to lock you in and turn you into a summer time renter.



I say go for it, it beats the ars gouging month to month.
 
Just my opinion - but I honestly don't think IAC is that smart. I requested to have my lease end in the summer time and they said no. They kept me at a year which keeps me a winter-time renter. You could say that works to their advantage too. People like to move during the school break in the summer. If their lease doesn't end at that time, they are forced to pay a lease break fee.
 
You must log in or register to reply here.
Back
Top