rents up?

[scaredyclassic]

I am still on a zillow email list that sends me listings and also rentals. Rental prices on tty here listings look steeply higher to me. Is there some index of local avg. Rent ttrends? Reg. Houses are listed at 2500 plus in temecula…

[CA renter]

Just checked our local areas and didn’t see anything too crazy. In around 2005-2006, rents shot through the sky around here, but have been pretty steady (at very high rates) since then.

Looked at Temecula and saw this one. Looks pretty reasonable to me, at least for a Southern California property — unreasonable anywhere else, IMO. Is this very different from what it was a few years ago?

https://sandiego.craigslist.org/nsd/apa/4634655531.html

[spdrun]

It’s very local. I’m trying to rent two places about 30 miles apart on the East Coast. One has many interested parties at 15% more than last year’s price. The other has a pathetic trickle at last year’s rent.

[FlyerInHi]

I agree that it’s local… but rents are definitely up in large metropolitan areas.

I just read a report. Seems like young people are moving to cities. And they are being priced out.

[phaster]

what I have noticed in Golden Hill and Bankers Hill (near downtown SD), is foreign buyers of apt building (by foreign I mean investors from outside SD county, like from the bay area, the east coast and even “china”), basically give notice to existing tenants just after the close

the reason being, with GRM in the 15 to 18 range, existing rents don’t cover the mortgage (so the new buyers kick everyone out and jack up the rents)

[spdrun]

If purchase prices are driving rents to unsustainable levels, this is going to end in pain.

[scaredyclassic]

hard to remember where things were a number of years ago. it’s all hazy

i kinda remember 2200 being very high end for temecula rent.

i remember thinking 2500 would be a LOT to rent my own house here out for if i had to when i bought it 4 years ago.

now im getting emails for nicer homes for 2500 …
but hell. everything is a hazy confusing blur. who knows when , what, how much. i don’t know.

[livinincali]

I think rents are up somewhat at a macro level. Probably 10-15% from the bottom of the recession in 2008-2009 but that was 5-6 years ago. 2% per year isn’t crazy inflationary pressure. Rents certainly aren’t keeping up with home prices and I’m seeing properties that push hard on the rent are sitting vacant for longer. Rents are going to go with the local economy. For the time being investors have decided to accept crappy cap rates and pushed the prices of real estate up much faster than the rents.

[poorgradstudent]

The Big Complexes have definitely raised their rent rates lately, at least in “desirable” areas (CV, UTC). The big complexes tend to compile data on their properties and how many empty units they are sitting on and adjust accordinly.

I’m not sure how much of that is seasonal. In the UTC area supply definitely dips as college students figure out where they want to live. Some of those students will graduate or drop out by the Spring.

Private landlords are definitely a bit lower than complexes.

[livinincali]

[quote=poorgradstudent]The Big Complexes have definitely raised their rent rates lately, at least in “desirable” areas (CV, UTC). The big complexes tend to compile data on their properties and how many empty units they are sitting on and adjust accordinly.

I’m not sure how much of that is seasonal. In the UTC area supply definitely dips as college students figure out where they want to live. Some of those students will graduate or drop out by the Spring.

Private landlords are definitely a bit lower than complexes.[/quote]

The biggest problem with the big complexes is the listed rates are pretty negotiable. They’ll let you get a better deal if you push for it. Of course if you’re a college student that’s taking student loans or mom and dad are paying for it maybe you really don’t care that they jacked your rent up by 10%. Oh well I don’t have to worry about it I’m going to get great job later.

[bewildering]

The problem is the complex has all the information. You have no idea about demand for the apartments. Also, you are usually time constrained when looking for an apartment. Together this makes your negotiating position very weak.

I have also noticed that apartment complexes will raise their rates every year. They are counting on you not being willing to move because of the hassle. I did not have this annual raise of rent in single apartments.

For example, my friend rented a studio in UTC initially for $980/month back in 2004, while i rented a one bedroom in PB for $950/month. 5 years later he was paying $1200 while I was still paying $950. The flip side of a steady rent is that I felt i could not move because my rent rate was good – I was as stuck as a home owner.

It really, really sucks to be a renter. You are at the mercy of idiots.

[moneymaker]

Zillow says rent zestimate on my place is up $30 in the last 30 days, my 15 year mortgage is less than that figure. By the way Zillow looks a lot different than it used to, did someone buy them?

[UCGal]

Zillow does look different. Don’t know if anyone bought them. I have no idea what algorithm they use… I just checked my house – it’s “zestimate” is very high (inaccurate, IMO). They also show a wierd dip in the last 30 days, then almost instant recovery. That’s true for a couple of my neighbors as well. I think it’s when the house for sale across the street went pending.

As far as rents – we got a big increase in rent with our new tenant a few months ago… but that’s because we no longer are offering “family discount”. (It’s good for the pocketbook to get market rent.) Our rental is unusual so hard to comp to other places…

[FlyerInHi]

[quote=bewildering]The problem is the complex has all the information. You have no idea about demand for the apartments. Also, you are usually time constrained when looking for an apartment. Together this makes your negotiating position very weak.

I have also noticed that apartment complexes will raise their rates every year. They are counting on you not being willing to move because of the hassle. I did not have this annual raise of rent in single apartments.

For example, my friend rented a studio in UTC initially for $980/month back in 2004, while i rented a one bedroom in PB for $950/month. 5 years later he was paying $1200 while I was still paying $950. The flip side of a steady rent is that I felt i could not move because my rent rate was good – I was as stuck as a home owner.

It really, really sucks to be a renter. You are at the mercy of idiots.[/quote]

I totally agree.

I would never rent from a complex. Why live among 100% renter. I would much prefer a mix of owners and renters.

In Vegas, I rent out a condo for $1,800. One neighbor is paying $1,000 (albeit for smaller unit without a den) for 5 years already because the owner doesn’t want to raise rent and upset the applecart. I told the tenant to never move. He’s getting a smoking deal!!

[Coronita]

Looks like the going price for a 1/1 condo in MM is around $1300/month now for something < 600 sqft west of Camino Ruiz. Interesting.. My tenants are month to month for some time... Meh.. I'm too lazy to raise rents...

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