According to Realfacts : Rents are down and occupancies too

[WaitingToExhale]

From looking at Craig’s List and and Rentometer, it looks to me like rents are actually rising in San Diego. At least the areas in which I am interested. The article above mentions that the occupancy rate in San Diego is one of the few that is still high, so perhaps my (somewhat unscientific) scanning of rental opportunities is accurate.

Does anyone see signs of falling rents here?

[Fearful]

What area of SD are you looking in? I am looking for 4-5BR in Carmel Valley.

I could see a short term upward pressure on rents as foreclosed houses stand vacant and are not offered for rent.

Longer term, though, as local recession eats in to affordability, rents will decline as demand decreases due to falling employment. If nothing else, reduced construction jobs pull down the local economy. Reduced demand means reduced willingness to pay rents.

As the local economy contracts there ends up being a net exodus. This does not mean that people everywhere are packing up their bags; rather, people naturally leaving are replaced a little less vigorously. Decreased population applies significant downward pressure on rents.

[Fearful]

What area of SD are you looking in? I am looking for 4-5BR in Carmel Valley.

I could see a short term upward pressure on rents as foreclosed houses stand vacant and are not offered for rent.

Longer term, though, as local recession eats in to affordability, rents will decline as demand decreases due to falling employment. If nothing else, reduced construction jobs pull down the local economy. Reduced demand means reduced willingness to pay rents.

As the local economy contracts there ends up being a net exodus. This does not mean that people everywhere are packing up their bags; rather, people naturally leaving are replaced a little less vigorously. Decreased population applies significant downward pressure on rents.

[Fearful]

What area of SD are you looking in? I am looking for 4-5BR in Carmel Valley.

I could see a short term upward pressure on rents as foreclosed houses stand vacant and are not offered for rent.

Longer term, though, as local recession eats in to affordability, rents will decline as demand decreases due to falling employment. If nothing else, reduced construction jobs pull down the local economy. Reduced demand means reduced willingness to pay rents.

As the local economy contracts there ends up being a net exodus. This does not mean that people everywhere are packing up their bags; rather, people naturally leaving are replaced a little less vigorously. Decreased population applies significant downward pressure on rents.

[Fearful]

What area of SD are you looking in? I am looking for 4-5BR in Carmel Valley.

I could see a short term upward pressure on rents as foreclosed houses stand vacant and are not offered for rent.

Longer term, though, as local recession eats in to affordability, rents will decline as demand decreases due to falling employment. If nothing else, reduced construction jobs pull down the local economy. Reduced demand means reduced willingness to pay rents.

As the local economy contracts there ends up being a net exodus. This does not mean that people everywhere are packing up their bags; rather, people naturally leaving are replaced a little less vigorously. Decreased population applies significant downward pressure on rents.

[Fearful]

What area of SD are you looking in? I am looking for 4-5BR in Carmel Valley.

I could see a short term upward pressure on rents as foreclosed houses stand vacant and are not offered for rent.

Longer term, though, as local recession eats in to affordability, rents will decline as demand decreases due to falling employment. If nothing else, reduced construction jobs pull down the local economy. Reduced demand means reduced willingness to pay rents.

As the local economy contracts there ends up being a net exodus. This does not mean that people everywhere are packing up their bags; rather, people naturally leaving are replaced a little less vigorously. Decreased population applies significant downward pressure on rents.

[Anonymous]

Unfortunately, I don’t foresee rent falling here in SD anytime soon. I oversee a portfolio of over 2,000 units throughout SD in large (100+) apartment communities. This time of year is typically slow for us, but not this year. All our communities are experiencing occupancy levels over 95%, many over 97%. An interesting thing we did change in our rental criteria last year is the acceptance of foreclosure applicants (they were too numerous to ignore), provided they have a cosigner or other acceptable proof of payment ability. So far as we have tracked, none of these renters have defaulted on their rental payments. It seems going from a $4,000 a month mortgage to $1,600 or so montly rent is allowing them to keep up timely payments. Interesting how when you stay within your income levels how easy it is to pay your bills on time. Perhaps this has helped our occupancy levels or something else is transpiring, but I’ve found it an interesting thing for us to track. We were all expecting the failed condo conversions to take a bite out of our numbers, but we are finding that renters do not want to live in a ghost of a community where the $$$ does not exist to pay for the services and amenities they were expecting. Since there are so many defaults, HOA fees are not being paid and the associations cannot pay the bills to keep up with security, heated pools, landscape, etc… Your typical class A rental properties can still offer those benefits.

[Anonymous]

Unfortunately, I don’t foresee rent falling here in SD anytime soon. I oversee a portfolio of over 2,000 units throughout SD in large (100+) apartment communities. This time of year is typically slow for us, but not this year. All our communities are experiencing occupancy levels over 95%, many over 97%. An interesting thing we did change in our rental criteria last year is the acceptance of foreclosure applicants (they were too numerous to ignore), provided they have a cosigner or other acceptable proof of payment ability. So far as we have tracked, none of these renters have defaulted on their rental payments. It seems going from a $4,000 a month mortgage to $1,600 or so montly rent is allowing them to keep up timely payments. Interesting how when you stay within your income levels how easy it is to pay your bills on time. Perhaps this has helped our occupancy levels or something else is transpiring, but I’ve found it an interesting thing for us to track. We were all expecting the failed condo conversions to take a bite out of our numbers, but we are finding that renters do not want to live in a ghost of a community where the $$$ does not exist to pay for the services and amenities they were expecting. Since there are so many defaults, HOA fees are not being paid and the associations cannot pay the bills to keep up with security, heated pools, landscape, etc… Your typical class A rental properties can still offer those benefits.

[Anonymous]

Unfortunately, I don’t foresee rent falling here in SD anytime soon. I oversee a portfolio of over 2,000 units throughout SD in large (100+) apartment communities. This time of year is typically slow for us, but not this year. All our communities are experiencing occupancy levels over 95%, many over 97%. An interesting thing we did change in our rental criteria last year is the acceptance of foreclosure applicants (they were too numerous to ignore), provided they have a cosigner or other acceptable proof of payment ability. So far as we have tracked, none of these renters have defaulted on their rental payments. It seems going from a $4,000 a month mortgage to $1,600 or so montly rent is allowing them to keep up timely payments. Interesting how when you stay within your income levels how easy it is to pay your bills on time. Perhaps this has helped our occupancy levels or something else is transpiring, but I’ve found it an interesting thing for us to track. We were all expecting the failed condo conversions to take a bite out of our numbers, but we are finding that renters do not want to live in a ghost of a community where the $$$ does not exist to pay for the services and amenities they were expecting. Since there are so many defaults, HOA fees are not being paid and the associations cannot pay the bills to keep up with security, heated pools, landscape, etc… Your typical class A rental properties can still offer those benefits.

[Anonymous]

Unfortunately, I don’t foresee rent falling here in SD anytime soon. I oversee a portfolio of over 2,000 units throughout SD in large (100+) apartment communities. This time of year is typically slow for us, but not this year. All our communities are experiencing occupancy levels over 95%, many over 97%. An interesting thing we did change in our rental criteria last year is the acceptance of foreclosure applicants (they were too numerous to ignore), provided they have a cosigner or other acceptable proof of payment ability. So far as we have tracked, none of these renters have defaulted on their rental payments. It seems going from a $4,000 a month mortgage to $1,600 or so montly rent is allowing them to keep up timely payments. Interesting how when you stay within your income levels how easy it is to pay your bills on time. Perhaps this has helped our occupancy levels or something else is transpiring, but I’ve found it an interesting thing for us to track. We were all expecting the failed condo conversions to take a bite out of our numbers, but we are finding that renters do not want to live in a ghost of a community where the $$$ does not exist to pay for the services and amenities they were expecting. Since there are so many defaults, HOA fees are not being paid and the associations cannot pay the bills to keep up with security, heated pools, landscape, etc… Your typical class A rental properties can still offer those benefits.

[Anonymous]

Unfortunately, I don’t foresee rent falling here in SD anytime soon. I oversee a portfolio of over 2,000 units throughout SD in large (100+) apartment communities. This time of year is typically slow for us, but not this year. All our communities are experiencing occupancy levels over 95%, many over 97%. An interesting thing we did change in our rental criteria last year is the acceptance of foreclosure applicants (they were too numerous to ignore), provided they have a cosigner or other acceptable proof of payment ability. So far as we have tracked, none of these renters have defaulted on their rental payments. It seems going from a $4,000 a month mortgage to $1,600 or so montly rent is allowing them to keep up timely payments. Interesting how when you stay within your income levels how easy it is to pay your bills on time. Perhaps this has helped our occupancy levels or something else is transpiring, but I’ve found it an interesting thing for us to track. We were all expecting the failed condo conversions to take a bite out of our numbers, but we are finding that renters do not want to live in a ghost of a community where the $$$ does not exist to pay for the services and amenities they were expecting. Since there are so many defaults, HOA fees are not being paid and the associations cannot pay the bills to keep up with security, heated pools, landscape, etc… Your typical class A rental properties can still offer those benefits.

[murray]

Facts from the field: I just placed new tenants in my Tierrasanta property.
Ask any landlord, renting out property during the holidays is VERY difficult. In the past I would advertise and maybe get 2 interested parties per week. However this time I received tremendous interest from my Craigslist ad. It still took a little time to get the property rented (because small house?). So what has changed in San Diego is that there are a lot of people looking to rent instead of buying a house, even during the usually slow holiday period. If I had this property turning over this summer, I predict I could get 10% more rent due to the demand for it.

[murray]

Facts from the field: I just placed new tenants in my Tierrasanta property.
Ask any landlord, renting out property during the holidays is VERY difficult. In the past I would advertise and maybe get 2 interested parties per week. However this time I received tremendous interest from my Craigslist ad. It still took a little time to get the property rented (because small house?). So what has changed in San Diego is that there are a lot of people looking to rent instead of buying a house, even during the usually slow holiday period. If I had this property turning over this summer, I predict I could get 10% more rent due to the demand for it.

[murray]

Facts from the field: I just placed new tenants in my Tierrasanta property.
Ask any landlord, renting out property during the holidays is VERY difficult. In the past I would advertise and maybe get 2 interested parties per week. However this time I received tremendous interest from my Craigslist ad. It still took a little time to get the property rented (because small house?). So what has changed in San Diego is that there are a lot of people looking to rent instead of buying a house, even during the usually slow holiday period. If I had this property turning over this summer, I predict I could get 10% more rent due to the demand for it.

[murray]

Facts from the field: I just placed new tenants in my Tierrasanta property.
Ask any landlord, renting out property during the holidays is VERY difficult. In the past I would advertise and maybe get 2 interested parties per week. However this time I received tremendous interest from my Craigslist ad. It still took a little time to get the property rented (because small house?). So what has changed in San Diego is that there are a lot of people looking to rent instead of buying a house, even during the usually slow holiday period. If I had this property turning over this summer, I predict I could get 10% more rent due to the demand for it.

[Author]

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