Solana Beach/Del Mar rental problem

[thinktwice]

I am hoping one you can make me understand something that I cannot seem to grasp. I rent a home in Del Mar (Solana Beach school district). I moved in last year and now I would like to revisit the rent. By all accounts the market has fallen somewhat and I feel the rent should fall some as well. The realtor and owner see it otherwise and are insisting that all is peachy in the market.

Recently I was given some comps for the property. I had an issue with most of the comps as when I mapped them out they all had really nice ocean views. Mine does not. How do I know this? Well footwork. I drove down to each property and rang doorbells and talked to people. The weird thing is that some of the properties are really much nicer than my current digs. The owner pointed to a Zillow estimate for comparison but when I asked the realtor who had a sign in front of the property what it was selling for it was double the Zillow. It rented for two hundred more than what I pay. I am asking for less than a 10% drop in rent. Am I off base here?

Also the other homes where mostly in a different and higher rated school district and west of the freeway (mine is east). The realtor told me that ocean view and west of the freeway did not make a difference. She’s nut’s right?

I am not from this area (3600 miles away) and am just trying to make some sense out of this market. The home is a 3b dr 2.5 bath 2563 s ft home with a pool. It is thirty years old. Only the kitchen has been redone (IKEA).

Something’s wrong right?

[SD Realtor]

Thinktwice it is really hard to be able to give you an answer without some very concrete comparisons. Also, unfortunate as it is, sometimes you do not get straight answers from other realtors and owners when asking what they are charging the current tenants as rent. The more accurate thing to do is to talk to the tenants which is what it sounds like you did.

Are you in a current lease and if so for how long? I take it you are coming up on a renewal period?

I would agree with you that an ocean view AND being west of the 5 should make a difference. I think your realtor is quite incorrect for that statement. Thus you being east of the freeway without a view should command a lower price. That makes sense but there is no obligation by anybody to change the terms in the middle of the lease.

Again, it is hard to give an accurate answer without really seeing your home verses other available rentals.

SD Realtor

[SD Realtor]

Thinktwice it is really hard to be able to give you an answer without some very concrete comparisons. Also, unfortunate as it is, sometimes you do not get straight answers from other realtors and owners when asking what they are charging the current tenants as rent. The more accurate thing to do is to talk to the tenants which is what it sounds like you did.

Are you in a current lease and if so for how long? I take it you are coming up on a renewal period?

I would agree with you that an ocean view AND being west of the 5 should make a difference. I think your realtor is quite incorrect for that statement. Thus you being east of the freeway without a view should command a lower price. That makes sense but there is no obligation by anybody to change the terms in the middle of the lease.

Again, it is hard to give an accurate answer without really seeing your home verses other available rentals.

SD Realtor

[lindismith]

Just so i’m clear, you’re trying to get a rent reduction, when you already live there? And you believe this to be possible?
I’m not trying to be cute, just trying to understand why you think you could negotiate this.

From their perspective, you should just rent one of the other places if you feel you can get more bang for your buck. Otherwise I think you have to suck it up.

What’s the 10% in a dollar value?

[lindismith]

Just so i’m clear, you’re trying to get a rent reduction, when you already live there? And you believe this to be possible?
I’m not trying to be cute, just trying to understand why you think you could negotiate this.

From their perspective, you should just rent one of the other places if you feel you can get more bang for your buck. Otherwise I think you have to suck it up.

What’s the 10% in a dollar value?

[Anonymous]

I’d say something is definitely wrong, but not out of the ordinary for folks who own property in CV or East Del Mar. 95% just can’t come to grips with things. I just rented a beautiful house in CV, gated enclave, very private, 4 years old, 4000+ sf, lots of upgrades, other houses in same neighborhood for sale at $1.2 – $1.4m (neither of which will bring $1m once the owners get realistic). I’m paying $4,000 and the owner better feel fortunate to have me.

[Anonymous]

I’d say something is definitely wrong, but not out of the ordinary for folks who own property in CV or East Del Mar. 95% just can’t come to grips with things. I just rented a beautiful house in CV, gated enclave, very private, 4 years old, 4000+ sf, lots of upgrades, other houses in same neighborhood for sale at $1.2 – $1.4m (neither of which will bring $1m once the owners get realistic). I’m paying $4,000 and the owner better feel fortunate to have me.

[davelj]

Negotiating in this sort of situation is really simple: You’ve got all the power as long as you’re actually willing to move if they don’t grant you the rent you want. Your willingness to move is a function of (a) the availability of a similar rental for an equal or better price and (b) your willingness to bear the cost and hassle of moving. It’s that simple.

If you’ve found another place that you’d be willing to live that’s a better deal then you should move there if your landlord won’t meet the rent you want.

In general, rents are sticky. They move up and down pretty slowly and down, in particular, really slowly (and rarely). Asking for a 10% reduction in rent probably won’t fly at this stage of the cycle, but might fly in a couple of years. I’ve forgotten what the figures were, but I think that even at the bottom of the 1990s recession here in CA, rents only declined by 12% or thereabouts from peak to trough, and that took 6 years. So, asking for a 10% year-over-year reduction in rent probably won’t work (I obviously don’t know the specifics of the situation, however), particularly if the owner is confident they can get someone in there for roughly what you’re paying now. But it never hurts to ask.

Personally, I’d raise the rent on you by 2%-3%. If you move, you move. I’d get a new tenant and just eat a couple of months rent. No biggie. You gotta remember, if you decide to move, it’s going to be expensive and a pain in the arse – and your landlord knows this. But if you’re willing to bear the cost and hassle, move on.

[davelj]

Negotiating in this sort of situation is really simple: You’ve got all the power as long as you’re actually willing to move if they don’t grant you the rent you want. Your willingness to move is a function of (a) the availability of a similar rental for an equal or better price and (b) your willingness to bear the cost and hassle of moving. It’s that simple.

If you’ve found another place that you’d be willing to live that’s a better deal then you should move there if your landlord won’t meet the rent you want.

In general, rents are sticky. They move up and down pretty slowly and down, in particular, really slowly (and rarely). Asking for a 10% reduction in rent probably won’t fly at this stage of the cycle, but might fly in a couple of years. I’ve forgotten what the figures were, but I think that even at the bottom of the 1990s recession here in CA, rents only declined by 12% or thereabouts from peak to trough, and that took 6 years. So, asking for a 10% year-over-year reduction in rent probably won’t work (I obviously don’t know the specifics of the situation, however), particularly if the owner is confident they can get someone in there for roughly what you’re paying now. But it never hurts to ask.

Personally, I’d raise the rent on you by 2%-3%. If you move, you move. I’d get a new tenant and just eat a couple of months rent. No biggie. You gotta remember, if you decide to move, it’s going to be expensive and a pain in the arse – and your landlord knows this. But if you’re willing to bear the cost and hassle, move on.

[bsrsharma]

thinktwice,

I think you are mixing up two different markets – Rental & purchase. They don’t have to act in unison. Because purchase price is very high right now, a lot of sensible people (who can very well afford to buy) are renting. That puts pressure on rental supplies causing increases. Especially true in inelastic markets like Del Mar where a lot more than just $ and cents are involved in living. Somewhere I read that if one is concerned about money they are probably not in RSF; probably applies to Del Mar too! (Like some store somewhere in Las Vegas (?), no price tag on the antiques. If one has to see price tag, it is not for him!)

Where I am living here, many listed homes haven’t moved in 7 months; prices are dropping but my rent increased. I am gladly paying it since it is a fraction of ownership cost and I am certain the real purchase price will drop after the Big Bang is over.

[bsrsharma]

thinktwice,

I think you are mixing up two different markets – Rental & purchase. They don’t have to act in unison. Because purchase price is very high right now, a lot of sensible people (who can very well afford to buy) are renting. That puts pressure on rental supplies causing increases. Especially true in inelastic markets like Del Mar where a lot more than just $ and cents are involved in living. Somewhere I read that if one is concerned about money they are probably not in RSF; probably applies to Del Mar too! (Like some store somewhere in Las Vegas (?), no price tag on the antiques. If one has to see price tag, it is not for him!)

Where I am living here, many listed homes haven’t moved in 7 months; prices are dropping but my rent increased. I am gladly paying it since it is a fraction of ownership cost and I am certain the real purchase price will drop after the Big Bang is over.

[thinktwice]

OK, many questions to try and answer.
First, when looking at comparable I needed to go no further than a couple of doors down. Identical model home minus pool. $1050 less/mo rent. THe other comparables were west of highway, same rent or less and had oceanviews. Two other were east of highway and bigger properties.

The difference in cash is -$300/mo.

Eating rent for a couple of months will wipe out whatever loss he would take.
We are good tenants that have taken really good care of the home. (I know sounds like BS but it’s true and there are few people like us out there)

It’s seems as if they are entrenched in their stance. I am just trying to do what is right. I will let them have their way and move on. Already have three properties lined up that are far more kid friendly (anything is more kid friendly as there are zero kids in 80 homes in this development). WIsh him well. ope he can get twice as much money, just not from me.

[thinktwice]

OK, many questions to try and answer.
First, when looking at comparable I needed to go no further than a couple of doors down. Identical model home minus pool. $1050 less/mo rent. THe other comparables were west of highway, same rent or less and had oceanviews. Two other were east of highway and bigger properties.

The difference in cash is -$300/mo.

Eating rent for a couple of months will wipe out whatever loss he would take.
We are good tenants that have taken really good care of the home. (I know sounds like BS but it’s true and there are few people like us out there)

It’s seems as if they are entrenched in their stance. I am just trying to do what is right. I will let them have their way and move on. Already have three properties lined up that are far more kid friendly (anything is more kid friendly as there are zero kids in 80 homes in this development). WIsh him well. ope he can get twice as much money, just not from me.

[SD Realtor]

thinktwice that is good strategy. Just make sure you are not breaking the lease, so that you don’t have any financial obligations.

SD Realtor

[SD Realtor]

thinktwice that is good strategy. Just make sure you are not breaking the lease, so that you don’t have any financial obligations.

SD Realtor

[Author]

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