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CoronitaParticipant.
CoronitaParticipantSo this is an interesting data point.
My previous tenant moved in 12/2019.
My current tenant moved in 12/2021, exactly 2 years and rent is 16.45% more. Or roughly 8.22% increase each year.That beats the 6.8% price inflation.
CoronitaParticipant6.8%
So if the average raise at my company is 5%. Most people are getting a pay cut. lol..
Reason #12834 to never just count on your salaried paycheck. Paychecks never keep up with inflation….
CoronitaParticipant[quote=XBoxBoy][quote=gzz]The market of people who are good tenants, have 72k a year for rent, and want to stay 12+ months is tiny. Buying makes much more sense.[/quote]
I always thought that, but watching the la jolla market I gotta tell you there are a lot of 6k (or more) a month rentals. In truth, 6k is nothing around here! What shocks me is the number of places around here that rent for more than 15k a month. Just boggles my mind. I mean seriously, who pays 20k or even 30k a month in rent? I don’t know, but it seems people really do pay that.[/quote]
Crypto baby
CoronitaParticipantOf course the easy button wouldn’t be complete with something totally screwed up…
So my contractor left the lid on the gallon of paint I gave him half closed…I put the gallon of paint into my trunk yesterday…This morning when I was about to go to the gym, I smelled strong latex paint odor in my car…Yep, you know where this is going.
Fortunately, it’s my old Audi, it’s latex paint, and it’s limited to the trunk floor liner , two removal panels the rear plastic panel , and a lot of paint that ran into the spare tire wheel well. Fun fun…
I think I got most of it off except the rear panel which I’ll need to replace or I was planning to coat.with s truck bed liner epoxy anyway since.it gets beat up from wear and tear.too bad it wasn’t my old white Miata. I would have gotten out the roller and called it day for repainting the trunk I was planning on doing…
Always check the lid of paint cans…. Always…..
CoronitaParticipantIt is done. My new tenant has paid me the security deposit and this month’s pro-rated rent.. He moves in tomorrow. Fastest lease so far @ 5 days turnaround.
Did not lose $$$ due to vacancy, since it was only a 5 day gap, and the prorated new rent is still more than the last tenant’s full month rent.
CoronitaParticipant[quote=gzz]6k for 2600sf in CV sounds very possible. Mine is about 2100sf, but the yard is huge and makes it feel bigger, 2 floors on 7k sf lot. I would price mine at 5500 if empty and see if there are good prospects.
Higher end like that has worse rent to price.
The market of people who are good tenants, have 72k a year for rent, and want to stay 12+ months is tiny. Buying makes much more sense.[/quote]
Two young professionals, double income with student loan with a kid or two that wants to go to a decent school district…that’s usually this submarket
CoronitaParticipantSo I did the first showing today, and the tenant prospect wants to sign and move in this Sunday. I sent him the rental agreement just now, and hoping he signs and Zelle me the money tomorrow and I can hand him the keys.
If this happens, it will be the fastest lease I’ve done. 5 days turnaround, including 3 days to clean and do minor repairs. And there won’t be any gap in cashflow since even with the prorated month, it’s still more than my previous tenant’s rent. So I will come out ahead immediately by the previous tenant leaving to save 2 months of rent while he is overseas.
Fingers crossed….stay tuned.
There’s going to be 31 other disappointed applicants..
CoronitaParticipantInteresting. I’m getting $5k for 2600sqft in Carmel Valley right now. I guess rent probably has gone up considerably since then. I allowed the current tenant to extend the lease for another year under the same terms…
I think I’m leaving $1000/month on the table. Oh wellCoronitaParticipantJust got out of a compensation/merit increase meeting today.
Standard merit increase will be moved up to Jan this year.
Standard merit increase will be 5% minimum and 15-20% bonus + TBD stock grants. I have some discretion for some to jack it up to 8% for those considered flight risk, which is basically my entire senior staff.From a cheap company like mine, that says a lot. Employee retention is a big concern=> wage inflation.
CoronitaParticipantSo… update to the landlording/rental situation.
I posted a for rent listing in one of the websites which *cough* is no longer free. I guess that public company had a few bad quarters over overpaying for homes on MLS and now actually has to try to make money, so they started to charge for listings.. Go figure! Anyway still good service, and it’s $30 for 90 days, so why not…
And lurking around Craiglist, I basically see no rental inventory in MM, and the starting price for the smallest is well over $2k/month for AND the status is “waitlist” taking backup tenants
I thought this was a scam from the large complexes like IMT etc to get people like there is a shortage.
Well, so far my listing slightly lower has 36+ respondents in 1 week, and that’s not including the ones I haven’t opened from craiglist. Unlike before, people contacting me are pretty content with my list price and aren’t trying to haggle over it.
So far, I got candidates that are engineers (mostly) around $100k-120k, nurses that make around $100k, a PA that makes $150k, and a few bites from parents of students from UCSD that want find their kid a place. And there’s a boatload of other applicants I haven’t had time to review, I’m hoping I can pick one out of the first 10 and not deal with scheduling showing for the rest.
The parents of UCSD student looking for student housing is kinda interesting… I have a colleague that just bought a 1/1 condo in UTC, and on the chinese network, she was able to get that condo filled within 1 week. $3300/month for a 1/1 paid by a parent that paid for the entire year of rent upfront. So add UCSD student housing shortage to the issue too.
Meanwhile, the funny part is my tenant moved out on 11/30. The day before he moved out, he texted me asking if he could stay an additional 3 days (for free of course!) because the friend he was going to stay came down with the flu and he didn’t want to risk him and his wife and kid getting sick. I was like, I’m sorry to hear about your situation, but buddy, you decided you wanted to end the lease 11/30 so you wouldn’t have to pay for rent for december and save 2-3 months of rent while you returned home overseas. You specifically wanted the last day to be 11/30. I’ve already scheduled cleaning, repairs, etc people to come over starting 12/1 and already scheduled to show over the next few days… I’m sorry, but if you’re concerned about getting sick, I’d suggest you find a hotel nearby to stay in…
I think right now, a hotel room in MM is running about $220-250/night…So if he stayed in a hotel for 4 nights, that’s like $1000 right there….Not to mention the $300 cleaning fee my cleaner is going to charge him for leaving the kitchen and place a mess.Pennywise, pound foolish… And not my problem..
I’m hoping to fill the condo over the weekend. Some of the tenant prospects is asking me if this is going to turn into a bidding war, and I said no….First come first serve with rental application and credit/income that passes my test. Then the applications, and pre-credit reports pay stubs came rolling in…See, I’m a nice guy. Not going to do this bidding war thing…
Man… $2000+/month starting in mira mesa.
The rent cashflow is starting to get really close to replacing my salary. It was only just a few years ago when the rent price was $1200/month and these were selling for $160k (and then that was considered a ripoff)…Wish I listened to people more and picked up more.CoronitaParticipant[quote=XBoxBoy][quote=barnaby33]Because remote work generally increases supply of labor. [/quote]
Nope, don’t agree. Remote work can increase the size of the labor pool available to a company, but that does not change the overall number of workers in the global work force. Overall the total number of people in the global workforce does not decrease simply due to remote work. If you want to look at it only from the point of view of US companies, then that’s a different thing. This discussion sprung up because of this comment:
[quote=deadzone]If all jobs could be done remotely, then clearly wages would go way down in the long run. [/quote]If all jobs could be done remotely then the only work force would be the global workforce. There would be no increase (or decrease) in the supply of labor. (And thus you wouldn’t expect a change in the cost of labor)
You could argue, (and I would agree) that with the globalization that started in the 60’s the size of the workforce available to US companies grew significantly over the next few decades as they moved manufacturing and other operations overseas. But at this point in time, I think that expansion has pretty much run its course.
On a more local scale, as more companies adjust to remote work, companies in areas that have very high wages (silicon valley for example) may find the supply of people they are willing to consider will increase thus allowing them to decrease wages. But conversely in areas that have lower wages (think Raleigh NC) the number of available workers will decrease because some of the workers in that area will now be working for Silicon Valley companies and companies in Raleigh will need to increase wages to compete. All in all it should balance itself out, not cause a universal drop in wages.[/quote]
// What you said more tersely.
I’d say, the only place where we would see a wage drop is in the extreme high cost area. Bay Area in particular. Since Bay Area probably has the highest compensated tech jobs and the highest number of jobs that can be offered remotely, I’d say there would be some pressure for lower wages in the Bay Area since there really isn’t much direction it can further go.
BUT, I think most of the rest of the US would see a tech wage increase, because most everywhere wages are lower (and in some cases much lower) than the bay area jobs that are now being offered remotely.. And if anyone is going to pick a remote job, they might as well pick the one that pays the most. So other companies that want to do remote job, will also need to compete in the remote job wage market.
CoronitaParticipant[quote=barnaby33]
I don’t see any reason to believe this. If all jobs could be done remotely wages would go down in some areas and up in others. Not sure why you would think wages would go down simply because they could be done remotely.
Because remote work generally increases supply of labor. In the short term the bottleneck is managerial resistance to building a culture of remote work. In the medium term when companies see that groups are successful they will search for talent at the lowest cost, duh! There is no magic that says rich western countries will win that competition. Increased global supply of software engineers and other knowledge workers will generally lower salaries unless there is enough demand to hoover all of them up.
Now the counter is that as far as innovation is concerned competition for the best will go up as companies do rely on less, but higher quality employees to get shit done. Those employees do generally (at least for now) come from rich countries, but that too will change. It will change because high quality people will realize they no longer have to emigrate for opportunity.
Josh[/quote]That’s not true. That’s the standard MBA answer that might look good as a theoretical research paper, but is not reflection the practical realities of the software industry…
There are plenty of outsource mobile engineering teams offshore right now that are offering services for 1/2 the cost…But yet many companies (us included) are still hiring domestic talent and paying significant higher wages than foreign software engineers.
Why is that?
Well, because if you ever built a product from ground up, the practical experience is that, yes you can do a complete offshore development project with cheap labor from a remote country IF all your product specification/requirements are fully documented with all your I’s and T’s crossed and all they need to do is implement exactly how the spec is written..In other words, if software ends up being more like factory assembly.
This might work in highly strict industries like defense, and medical devices..
But for the rest of the real world, software doesn’t work that way. Most of these cutting edge companies never have a fully speced/requirements gathered product feature of what they want to build. There is a lot of ambiguity from a product perspective of what needs to get built and a certain level of flexiblity, creativity, and tolerance for shitty product requirements….
The shitty product requirements that happens a lot can be managed by a inshore/inhouse team that is paid more to tolerate that shitty requirements, and just-in-time requirements development needed to make a product release. Bluntly put, your inhouse team is an exempt employee and you can make them work to get shit done even if the spec isn’t perfect.
If you try that with an outsourced third party software shop that is cheap overseas, what you will end up is a shitty end product because it only does exactly what the shitty product requirements specified, leaving out the rest of the missing requirements….And in the end, you’ll end up spending even more money design/implementation/qa to address all those missing things after the fact, because like any software…It’s much more expensive to make fixes/changes after things have been released. They are paid by the hour, and couldn’t give a shit their product requirements suck…Because they get paid by what you tell them to do, regardless of how the end product turns out.
That leaves the last option which is hiring directly someone overseas and pay them 1/2 the cost. Again, you can do this too, but there’s a bunch of legal/coordination tasks for this to happen. And there are language and cultural barriers that again makes it challenging for those teams to deal with a half baked product requirement spec.
That’s why you CAN farm out boring, fully speced out shit…But it’s really difficult to farm out work/design that won’t ever have a full product spec on what needs to be built, which ends up tending to be the cutting edge things…
Yes, many companies like mine have also gone through this exercise and learned the hard way too and burned dollars with cheaper “labor”. That’s why we we are now going the opposite direction, since the previous direction didn’t work and turned into a dumpster fire.
You won’t understand this if you work in one those strict, to the T industries that have thick process, that use heavyweight things like TSP/PSP software process or anything heinous like that. Because in those industries (like defense and medical), you do need a heavyweight process and move much slower, because if you fuck up, people will die.
But for the rest of the world, the rest of the world doesn’t use this painfully strict software process because if it did, nothing would get done…I would shoot myself if I had to work that way…
CoronitaParticipantMore proof of inflation. Software services…
We use a enterprise software service from a company that does app review scraping and integration to Slack so that when someone posts an app review, we get notified on slack, and there’s a bunch of workflow and automation that happens from that.
Previously, the company was offering the capability at roughly $1.50/month/per app integration… Well, exceeded our app limit of 50….And now that I want to add more seats, the company is telling me that special pricing 3 years ago at $1.50/month/per app is no longer offered…..Current prices is roughly $8/month/per app…And when I asked about why the big price jump, the sales guy said “inflation”… lol….
I’m looking for another provider….
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