Huge spikes in rent?

[WaitingToExhale]

[quote=EconProf]As a landlord for many years, I’ve found the best policy is to discover the average market for my units, then ask slightly less and be very picky about chosing tenants. I also raise them slightly each year, always keeping them under (presumably rising) market comps. Tenants are told up front of this policy.
Yes, I’ve seen foolish landlords ask for higher than market rents and then sit on vacancies for a while, or else rent to dregs as tenants. Can’t cure stupid.
[/quote]

You’re the kind of landlord my family looks for. We take very good care of our rental, have very good credit, and try to pick up the cost of incidentals to avoid nickle-and-diming the landlord (i.e., we’ll pick up the $100 for a plumber here or there, I painted the trim on the house, etc.). In return we ask for competitive rents and general consideration.

[davelj]

I think rents will go down a bit eventually as the foreclosures get sucked up by investors and rented out, but we’re early in the process.

As an anecdote, however, I know a guy who’s in charge of managing two large apartment complexes in Imperial Beach (440 units in all) and he says there are 9 vacant units right now and they have been raising rents 4% on renewals and new tenants recently. For now, folks moving out of foreclosed homes and into apartments are outnumbering folks moving into foreclosed rental homes. I suspect that will reverse in 2009 as more foreclosed homes get purchased and rented out.

[davelj]

I think rents will go down a bit eventually as the foreclosures get sucked up by investors and rented out, but we’re early in the process.

As an anecdote, however, I know a guy who’s in charge of managing two large apartment complexes in Imperial Beach (440 units in all) and he says there are 9 vacant units right now and they have been raising rents 4% on renewals and new tenants recently. For now, folks moving out of foreclosed homes and into apartments are outnumbering folks moving into foreclosed rental homes. I suspect that will reverse in 2009 as more foreclosed homes get purchased and rented out.

[davelj]

I think rents will go down a bit eventually as the foreclosures get sucked up by investors and rented out, but we’re early in the process.

As an anecdote, however, I know a guy who’s in charge of managing two large apartment complexes in Imperial Beach (440 units in all) and he says there are 9 vacant units right now and they have been raising rents 4% on renewals and new tenants recently. For now, folks moving out of foreclosed homes and into apartments are outnumbering folks moving into foreclosed rental homes. I suspect that will reverse in 2009 as more foreclosed homes get purchased and rented out.

[davelj]

I think rents will go down a bit eventually as the foreclosures get sucked up by investors and rented out, but we’re early in the process.

As an anecdote, however, I know a guy who’s in charge of managing two large apartment complexes in Imperial Beach (440 units in all) and he says there are 9 vacant units right now and they have been raising rents 4% on renewals and new tenants recently. For now, folks moving out of foreclosed homes and into apartments are outnumbering folks moving into foreclosed rental homes. I suspect that will reverse in 2009 as more foreclosed homes get purchased and rented out.

[davelj]

I think rents will go down a bit eventually as the foreclosures get sucked up by investors and rented out, but we’re early in the process.

As an anecdote, however, I know a guy who’s in charge of managing two large apartment complexes in Imperial Beach (440 units in all) and he says there are 9 vacant units right now and they have been raising rents 4% on renewals and new tenants recently. For now, folks moving out of foreclosed homes and into apartments are outnumbering folks moving into foreclosed rental homes. I suspect that will reverse in 2009 as more foreclosed homes get purchased and rented out.

[DWCAP]

[quote=davelj]I think rents will go down a bit eventually as the foreclosures get sucked up by investors and rented out, but we’re early in the process.

As an anecdote, however, I know a guy who’s in charge of managing two large apartment complexes in Imperial Beach (440 units in all) and he says there are 9 vacant units right now and they have been raising rents 4% on renewals and new tenants recently. For now, folks moving out of foreclosed homes and into apartments are outnumbering folks moving into foreclosed rental homes. I suspect that will reverse in 2009 as more foreclosed homes get purchased and rented out.[/quote]

Having people move from one place to another and then back again is a zero sum game in the long run. We are in a period of higher rents, but perhaps 2010-2012 will be a period of lower rents.

If you really want to see if changes are in store, watch the population numbers. In the mid 90’s SD lost alot of middle class white folks to other parts of the country due to it’s collapsed Aerospace job market. Housing fell due to both the recession, and the lack of demand. This recession is just kicking off. If we get a large outmigration over the next couple of years housing will fall again no matter what the economy does. Housing is only demanded if people are there to demand it.

[DWCAP]

[quote=davelj]I think rents will go down a bit eventually as the foreclosures get sucked up by investors and rented out, but we’re early in the process.

As an anecdote, however, I know a guy who’s in charge of managing two large apartment complexes in Imperial Beach (440 units in all) and he says there are 9 vacant units right now and they have been raising rents 4% on renewals and new tenants recently. For now, folks moving out of foreclosed homes and into apartments are outnumbering folks moving into foreclosed rental homes. I suspect that will reverse in 2009 as more foreclosed homes get purchased and rented out.[/quote]

Having people move from one place to another and then back again is a zero sum game in the long run. We are in a period of higher rents, but perhaps 2010-2012 will be a period of lower rents.

If you really want to see if changes are in store, watch the population numbers. In the mid 90’s SD lost alot of middle class white folks to other parts of the country due to it’s collapsed Aerospace job market. Housing fell due to both the recession, and the lack of demand. This recession is just kicking off. If we get a large outmigration over the next couple of years housing will fall again no matter what the economy does. Housing is only demanded if people are there to demand it.

[DWCAP]

[quote=davelj]I think rents will go down a bit eventually as the foreclosures get sucked up by investors and rented out, but we’re early in the process.

As an anecdote, however, I know a guy who’s in charge of managing two large apartment complexes in Imperial Beach (440 units in all) and he says there are 9 vacant units right now and they have been raising rents 4% on renewals and new tenants recently. For now, folks moving out of foreclosed homes and into apartments are outnumbering folks moving into foreclosed rental homes. I suspect that will reverse in 2009 as more foreclosed homes get purchased and rented out.[/quote]

Having people move from one place to another and then back again is a zero sum game in the long run. We are in a period of higher rents, but perhaps 2010-2012 will be a period of lower rents.

If you really want to see if changes are in store, watch the population numbers. In the mid 90’s SD lost alot of middle class white folks to other parts of the country due to it’s collapsed Aerospace job market. Housing fell due to both the recession, and the lack of demand. This recession is just kicking off. If we get a large outmigration over the next couple of years housing will fall again no matter what the economy does. Housing is only demanded if people are there to demand it.

[DWCAP]

[quote=davelj]I think rents will go down a bit eventually as the foreclosures get sucked up by investors and rented out, but we’re early in the process.

As an anecdote, however, I know a guy who’s in charge of managing two large apartment complexes in Imperial Beach (440 units in all) and he says there are 9 vacant units right now and they have been raising rents 4% on renewals and new tenants recently. For now, folks moving out of foreclosed homes and into apartments are outnumbering folks moving into foreclosed rental homes. I suspect that will reverse in 2009 as more foreclosed homes get purchased and rented out.[/quote]

Having people move from one place to another and then back again is a zero sum game in the long run. We are in a period of higher rents, but perhaps 2010-2012 will be a period of lower rents.

If you really want to see if changes are in store, watch the population numbers. In the mid 90’s SD lost alot of middle class white folks to other parts of the country due to it’s collapsed Aerospace job market. Housing fell due to both the recession, and the lack of demand. This recession is just kicking off. If we get a large outmigration over the next couple of years housing will fall again no matter what the economy does. Housing is only demanded if people are there to demand it.

[DWCAP]

[quote=davelj]I think rents will go down a bit eventually as the foreclosures get sucked up by investors and rented out, but we’re early in the process.

As an anecdote, however, I know a guy who’s in charge of managing two large apartment complexes in Imperial Beach (440 units in all) and he says there are 9 vacant units right now and they have been raising rents 4% on renewals and new tenants recently. For now, folks moving out of foreclosed homes and into apartments are outnumbering folks moving into foreclosed rental homes. I suspect that will reverse in 2009 as more foreclosed homes get purchased and rented out.[/quote]

Having people move from one place to another and then back again is a zero sum game in the long run. We are in a period of higher rents, but perhaps 2010-2012 will be a period of lower rents.

If you really want to see if changes are in store, watch the population numbers. In the mid 90’s SD lost alot of middle class white folks to other parts of the country due to it’s collapsed Aerospace job market. Housing fell due to both the recession, and the lack of demand. This recession is just kicking off. If we get a large outmigration over the next couple of years housing will fall again no matter what the economy does. Housing is only demanded if people are there to demand it.

[Author]

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