2 year lease common?

[waiting hawk]

Some LL’s want us to sign a 2 year lease so I can move. Is that common? Buying in 2009 sounds good but could crash faster if 10 year flys off the handle and gets close to double digits. What u all think?

[KIBU]

You can look for an article on signonsandiego.com some weeks ago discussing about the pressure for decreasing rental rates in san diego and the trend will likely continue.

You can rent house cheaper as the market crashes. I think the 2 years lease is not usual here in SD.

KIBU, the expert renter

[KIBU]

You can look for an article on signonsandiego.com some weeks ago discussing about the pressure for decreasing rental rates in san diego and the trend will likely continue.

You can rent house cheaper as the market crashes. I think the 2 years lease is not usual here in SD.

KIBU, the expert renter

[patientrenter]

2-year leases are not common in So Cal.

What’s the total savings from signing the 2-year lease? X

What’s the penalty for bailing? Y

So you get X if house prices decline slowly over 2 years (and you don’t buy), and lose Y if they drop very quickly and then start rising (and you buy). Only you know X and Y.

I doubt that prices will plummet very quickly and then start rising, all within 2 years. It’s possible, but then the $100,000’s you’ve saved on the house should easily cover the lease bail-out penalty (assuming it’s a few $1000).

Patient renter in OC

[patientrenter]

2-year leases are not common in So Cal.

What’s the total savings from signing the 2-year lease? X

What’s the penalty for bailing? Y

So you get X if house prices decline slowly over 2 years (and you don’t buy), and lose Y if they drop very quickly and then start rising (and you buy). Only you know X and Y.

I doubt that prices will plummet very quickly and then start rising, all within 2 years. It’s possible, but then the $100,000’s you’ve saved on the house should easily cover the lease bail-out penalty (assuming it’s a few $1000).

Patient renter in OC

[FormerOwner]

I rent up in Temecula and I have a 2 year lease – so does my neighbor next door. These landlords seem to prefer the stability of having a tenant for 2 years. Not sure why though – since they’re losing thousands each month they rent these places out!

[FormerOwner]

I rent up in Temecula and I have a 2 year lease – so does my neighbor next door. These landlords seem to prefer the stability of having a tenant for 2 years. Not sure why though – since they’re losing thousands each month they rent these places out!

[temeculaguy]

If I were about to start a new deal right now with a tennant, I would want them to sign a two year lease too. Look at it from their perspective, there is no indication that rents will rise in the next two years and there is a possibility they will fall and you may have trouble renting it out. As houses are becoming harder to sell, more owners will become landlords, puts downward pressure on rents and harder to find quality renters. Every move costs a landlord money in advertising, cleaning and the cost of an empty unit between renters. Don’t sign a two year lease unless you get something in return. And yes, the bottom may hit in the next 24 months, don’t bring a date to this party, you’ll want to be single for this event.

[temeculaguy]

If I were about to start a new deal right now with a tennant, I would want them to sign a two year lease too. Look at it from their perspective, there is no indication that rents will rise in the next two years and there is a possibility they will fall and you may have trouble renting it out. As houses are becoming harder to sell, more owners will become landlords, puts downward pressure on rents and harder to find quality renters. Every move costs a landlord money in advertising, cleaning and the cost of an empty unit between renters. Don’t sign a two year lease unless you get something in return. And yes, the bottom may hit in the next 24 months, don’t bring a date to this party, you’ll want to be single for this event.

[sdduuuude]

If I’m a renter and don’t want the LL to sell the house out from underneath me, a two-year lease isn’t all that bad.

Lots of LLs who purchased in the last couple of years will find themselves really wanting or needing to sell in the next two years.

Ask to put something in the lease to make it have some “teeth” for you as well – like if they want to break the lease to sell it, they owe you a month’s rent and moving expenses.

D

[sdduuuude]

If I’m a renter and don’t want the LL to sell the house out from underneath me, a two-year lease isn’t all that bad.

Lots of LLs who purchased in the last couple of years will find themselves really wanting or needing to sell in the next two years.

Ask to put something in the lease to make it have some “teeth” for you as well – like if they want to break the lease to sell it, they owe you a month’s rent and moving expenses.

D

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