Rent are rising

[Clifford]

[quote=livinincali][quote=spdrun]Why are apartments higher than condos, out of curiosity? Amenities in each type of complex are very similar from what I’ve seen.
[/quote]

Large apartment complexes have always been able to push the envelop on rent. They always have some percentage of vacant units and an extra month of vacancy on one unit is a tiny drop in the bucket. A Landlord with a couple condos doesn’t usually have that luxury. They don’t want to miss a month or two of rent in exchange for a marginal increase in rent because it probably will take a couple of years to make that lost month of rent back in the higher rate.

Large apartment complexes have a better marketing profile than an individual landlord and they always have something available for people new to the city or in some kind of pinch. Large apartment complexes are also probably willing to take some chances on tenant with poor credit profiles. In addition they don’t care if some landlord down the street is only charging $1200 for a single condo unit, they only care about the other large apartment complexes in the area and the vacancy rate they are experiencing.

The small time landlord wants a quality tenant and to get that quality tenant they are willing to take a bit of a hit on price.[/quote]

That’s an excellent answer. Thanks.

[spdrun]

FlyerInHI – what do you do about non-traditionals? Freelancers, grad students, people with internships? I’m happy to rent to those. They’re usually good tenants, and I tend to want to give them a leg up anyway.

[Coronita]

[quote=spdrun]I just check references, interview, and do a Google search for any news about violent crime in the prospect’s name. I don’t ask for an SSN to run credit — too much liability in case of ID theft in future. No point to check pay stubs either. Too easily forged.

Getting 3-4 friends to agree on reference stories is surprisingly difficult.[/quote]

Experian tenant credit check is your friend.

https://connect.experian.com/credit-check/tenant-credit-check.html
https://connect.experian.com/pdf/experian-credit-report-sample.pdf

I tell tenants up front there is a $30 application fee IF you want they want me to pull their credit and do a background check.

If, however, they do the experian tenant credit check, they pay experian $15, and grant me access to view their credit file, that blinds out the SSN. Plus for them, they can reuse the credit file in case they decide not to rent from me….Since it comes from experian directly, you know they couldn’t have faked a scanned copy.

Regarding background checks, I haven’t had to do a background check, because the tenants that responded to my ad first all work for a large tech company. So I’d assume the background check was already done by that company. I do request them to give me proof of employment and verify that with a call to the company…

[FlyerInHi]

[quote=spdrun]FlyerInHI – what do you do about non-traditionals? Freelancers, grad students, people with internships? I’m happy to rent to those. They’re usually good tenants, and I tend to want to give them a leg up anyway.[/quote]

Absolutely. I like grad students and interns. I would verify their positions with their organizations.

Freelancers and self-employed, I tend to shy away from. Many of them are bullshitters and don’t have 2 pennies to rub together. It depends on whether I believe the story. Generally, I don’t believe them.

I have zero tolerance for late payments, or sob stories.

[spdrun]

Short of violent crime that will likely make police reports, offender registries, and/or newspapers, I really couldn’t give an aerial yank whether a prospective tenant was arrested for minor things like weed, peeing in public, or telling off a cop five years ago. (In fact, I might be more likely to rent to them, since I’d be helping someone who’s unfairly marginalized by our injustice system.)

[spdrun]

^^^

So basically, you tend to think that anyone who doesn’t suck corporate ch*ad is not worthy to do business with. You sound like a real prince. Not to mention hypocritical, since you yourself appear to be self-employed.

[FlyerInHi]

Yeah, I’m a prince. I’ve heard sob stories before and I’ve developed zero tolerance.

I just take the path of least resistance for screening purposes.

No dirty, untidy people, weed smokers, etc… They can knock themselves out and do all they want, but not in my place.

BTW, I don’t mind students who are enrolled in school and can show bank statements or some kind of income/budgets, or have parents cosign.

Not hypocritical. I separate the big picture from my individual benefit. It’s like the paradox of thrift. Policy makers want to encourage spending in the economy. Individuals should save.

[joec]

Kron 4 bay area news video shorts on rental prices in the bay area…

http://kron4.com/2015/05/22/tech-report-tech-boom-impacts-housing-part-2/

http://kron4.com/2015/05/20/tech-report-the-tech-boom-impacts-housing/

I suppose it’s a bit sad for people who are “stuck” with having to stay in the bay area like the medical student resident at Stanford or someone caring for an 80+ parent, but for everyone else, the majority of people can’t really afford to live there if they don’t have a place already and should really leave.

About $3k/month for a 2 bed/1 bath rental and the place talked about will raise rents after a private equity took over to $5.5k/month for the same place?

For everyone else who can leave, unless you plan to hit the IPO/acquired lottery soon, that $3k-$5k drain/month in housing is such a negative impact on your future retirement and any savings.

I used to rent for 1k/month myself.

Any bay area people here in this boat currently?

[an]

Unfortunately, I know many who don’t think that far ahead or don’t see the impact of their high cost of living. They just love the city and the vibe. Being a native SoCal-er, I don’t understand it, but I guess people outside of SoCal would say the same about us.

[Coronita]

Bump…..

http://www.utsandiego.com/news/2015/jun/03/rents-apartments-costs-living-homes-realestate/

Rising jobs push rents even higher

More evidence emerged Wednesday that San Diego’s accelerating economy is driving up rents faster than employers are increasing wages, pinching many households.

The San Diego County Apartment Association reported that the average rent in the county was $1,514 a month in its April survey. That’s up 20 percent from the same time last year, although association officials cautioned that its survey does not precisely compare the same set of units each year.

Yet other recent, larger surveys have found even higher average costs, ranging from $1,575 to $1,756 per month — with rents rising at annual rates of between 3 percent and 6 percent — roughly double the 2 percent pace of average wage growth.

[The-Shoveler]

To me the most accurate and telling part of that article is
“builders have not kept up with demand for more than a decade”

Boomers retiring and millennials uninterested in building trades to me means there is a big crunch coming.

Some will call it a bubble, but it will really be more of a crisis that there is no easy fix for.

Call boomers what ever you want, but at least they were willing to work really hard.

[fun4vnay2]

Would san diego become like Bay Area ?
Unless and until, you are pretty rich or earning big $$, no place for you in SD like Bay Area.

I see jobs are increasing but they are not really high paying http://www.kpbs.org/news/2015/jun/03/san-diego-adding-jobs-are-they-right-jobs/

I am experiencing high paying job flights almost first hand.

[The-Shoveler]

Construction trades pay better than average but I see two issues.

1) are Young people willing to commit to 3-5 year apprenticeship (and do really hard physical labor)?

2) Is SD willing to let builders build?

If there is not enough, there is not enough.

[bewildering]

From the UT article:

“Still, the outlook isn’t necessarily dire for the average family. Rent consumes less than half of a typical household’s income,”

HALF a household income on rent? That seems very high to me.

[livinincali]

[quote=bewildering]From the UT article:

“Still, the outlook isn’t necessarily dire for the average family. Rent consumes less than half of a typical household’s income,”

HALF a household income on rent? That seems very high to me.[/quote]

And economists keep wondering why household spending is not picking back up and the economy isn’t growing like it should. Plenty of landlords out there that would probably prefer to be collecting 4% yields from a CD or safe bond rather than rental properties but there’s no other options.

It be be interesting if the government attempts to protect renters at the expense of landlords during the next recession.

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