ok, here are the specifics… the area is Costa Mesa on 19th st. but in the rougher area near the DMV, it is sort of a Mexican hood but a bit better than Santa Ana, the city together with investors have been trying like crazy to pursue gentrification due to it’s proximity to Newport beach but as it stands it’s still a somewhat rougher area compared to South Orange County.
when I moved in Sep ’11 rent was below market for the area at $1025/mo. The complex is rather old and dilapidated but I was ok with it due to the cheap rent. The unit is tiny as well, 520 sqft and has only a carport but it is gated which is a plus.
The place was owned by a private person and she mentioned that she was keeping rents quite a bit below market since she didn’t want turnover and had much higher criteria for tenant quality (credit, income stability etc.). Then she sold the place to another investor 4 months after I moved in, I was on a 6 month lease but after that expired the rent jumped to $1045/mo., then $1085/mo. in 2 more months. Fair enough I still paid without complaints as it was a good deal.
This investors sold again to someone else now and fast forward to today the rent is now $1145 which is reasonable for the size of the unit and the area. The new notice increases this to $1270/mo. I also have 2 motorcycles and pay $150/mo. for a 10×10 storage unit to store them about a half mile away. So my total outflows with this increase would be $1270+150 = $1420 which is ridiculous for the area and the fact that I have no garage.
A friend of mine has just rented a 2 bd, 1100 sqft w/2 car garage just a few blocks away for $1500 and in that same complex was a 850 sqft 1bd with 2 car garage (a bit unusual for a 1bd) for $1290 so the new increase is a very bad deal for me.
I had a talk with the mgr and showed actual listings in the area of places with garages for under $1300/mo. She argues that new tenants are paying $1400 base rent YIKES!! and her offer of $1270/mo to me represents a “discount”. I told her how can it be a discount when I am showing her actual listings on craigslist of LARGER places in a somewhat better area WITH a garage onsite for LESS.
It’s not like I am pulling facts out of my behind, I have no problems paying what the market bears but my research shows that there are other much more competitively priced units. But they are refusing to budge on the new rent.
It seems to me that there are two distinct markets, some complexes where landlords have acquired properties a long time ago for a lot less can keep rents lower to hang on to good tenants, but the more recent investors need to jack up the rents in order to get return on their inflated investments. As a renter I could care less about an investor’s situation of trying to recoup their investment, I care only about the bottom line and who is offering me the best deal.
They did give me a 60 day notice since by law they have to for anything over a 10% increase, so I will be moving, it’s a pain but I can do better and it’s much more convenient for me to have a garage onsite.
But I am in AWE of people paying $1400/mo for a tiny, crappy apt in a halfway crappy area! LOL! But if the landlord can find such suckers more power to them.
Sorry for such a long winded reply but now you have a much better view of my situation 🙂
