Author Topic: Rental Leasing Increase  (Read 24738 times)

0 Members and 1 Guest are viewing this topic.

Offline eyephone

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 197
  • -Received: 465
  • Posts: 6966
Re: Rental Leasing Increase
« Reply #30 on: June 13, 2017, 03:33:55 PM »
As a private landlord it is difficult to raise people's rents every year, especially when it jumps like it has in the past few years.  So you're looking at a mortgage that is the same with all the regular costs, and the ability to raise rents.  It's quite the power trip.

My renter told me he knows the rents for the area is very high, and he didn't want me to subsidize his living situation anymore.  He is going to leave so I can increase my rent.

Sounds like you have a great tenant...hold on to them.

Keep them for around $8k a year loss of potential rental income. ($700 the difference of rent x 12 months = $8,400)

Offline Tom Lane

  • Newbie
  • Thanks
  • -Given: 0
  • -Received: 0
  • Posts: 4
Re: Rental Leasing Increase
« Reply #31 on: June 16, 2017, 02:48:48 AM »
My rentals for the past several years, each year when tenants renew a lease term I've always increase the rent rate by 3 to 4 percents. This year with the strong job market and tight inventory I am contemplating raising the rate about 10 percents. What would you do if you are a leasing your rental(s)? There are a lot of great applicants out there with good paying jobs that wanted to rents in Irvine.

Hi, just found this forum and I'm still trying to move over there but rents are high. Here in Vegas the culture is different (the people). Landlords generally don't raise rents except maybe by 2 percent, unless the landlord is from California and then they raise rents with computer programs by 5 percent of more.

Offline Compressed-Village

  • O.C. Resident
  • ***
  • Thanks
  • -Given: 82
  • -Received: 64
  • Posts: 540
Re: Rental Leasing Increase
« Reply #32 on: June 16, 2017, 06:05:44 PM »
Rental in Irvine is different than other local rental to OC by an arm and a leg. Now compare that to Vegas is a huge difference. Rental in Irvine typically rent out very quickly. As far as increases, that determine case by case basis for me. If you have a great renter, I would not raise any.

Offline zubs

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 51
  • -Received: 300
  • Posts: 1342
Re: Rental Leasing Increase
« Reply #33 on: June 19, 2017, 03:17:03 PM »
As a private landlord it is difficult to raise people's rents every year, especially when it jumps like it has in the past few years.  So you're looking at a mortgage that is the same with all the regular costs, and the ability to raise rents.  It's quite the power trip.

My renter told me he knows the rents for the area is very high, and he didn't want me to subsidize his living situation anymore.  He is going to leave so I can increase my rent.

Sounds like you have a great tenant...hold on to them. 

If you were to monetize "great tenant" how much would it be? 

$100/month
$200/month
$300/month

Where's the line drawn?
For me I'd say around $250 to $350 per month.

The following member(s) thanked this post:


Offline illinoisjoe

  • Newbie
  • Thanks
  • -Given: 6
  • -Received: 2
  • Posts: 6
Re: Rental Leasing Increase
« Reply #34 on: June 19, 2017, 03:42:22 PM »

If you were to monetize "great tenant" how much would it be? 

$100/month
$200/month
$300/month

Where's the line drawn?
For me I'd say around $250 to $350 per month.

I like this question. Let's get down to brass tacks. Being a landlord in California doesn't seem like something I can even fantasize about given my line of work, but I can tweak the question a bit: "If you were to monetize "adequate landlord" how much would it be?

When I really thought about it, I think my number was about the same as yours: All things being equal, I'd probably pay about $250/mo to escape a bad landlord.

Offline spootieho

  • O.C. Resident
  • ***
  • Thanks
  • -Given: 111
  • -Received: 59
  • Posts: 748
Re: Rental Leasing Increase
« Reply #35 on: August 24, 2017, 12:02:02 AM »
If you were to monetize "great tenant" how much would it be? 

$100/month
$200/month
$300/month

Where's the line drawn?
For me I'd say around $250 to $350 per month.
I'm not a landlord, so I'm a bit ignorant. 

I'd guess it would be about a month's rent divided by 12 months plus a little more for hassle and expenses on turn around.  That pretty much matches your numbers.  Then again, out here it's common to see people move in a couple days after someone moves out.

Offline zubs

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 51
  • -Received: 300
  • Posts: 1342
Re: Rental Leasing Increase
« Reply #36 on: August 24, 2017, 09:41:29 AM »
an update...for my case above. I finally rented my house out for $2700.  So hopefully the new renters are good.
So my rent went from $2200 to $2700 in one move out at the end of JUN.

$500 more a month.  The hell is going on with this economy?  I feel like a bandit taking that much in rent.
But there were 6 offers.... fuck burning man.

While my new renters were moving in, another couple came to look at the house and were shoo'd away by the new renters.
« Last Edit: August 24, 2017, 09:50:51 AM by zubs »

The following member(s) thanked this post:


Offline nosuchreality

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 75
  • -Received: 295
  • Posts: 1288
Re: Rental Leasing Increase
« Reply #37 on: August 24, 2017, 12:13:25 PM »
an update...for my case above. I finally rented my house out for $2700.  So hopefully the new renters are good.
So my rent went from $2200 to $2700 in one move out at the end of JUN.

$500 more a month.  The hell is going on with this economy?  I feel like a bandit taking that much in rent.
But there were 6 offers.... fuck burning man.

While my new renters were moving in, another couple came to look at the house and were shoo'd away by the new renters.

Are you renting a 2/2?

Seriously, 3 bedroom apartments are $3000 (okay, $2955), an actual townhouse or detached 3bd, a little more.

Rental demand in Irvine and immediate vicinity is very strong, such that if you own a place, financially it may be better to move, landlord and rent than sell and buy.  Essentially using the new renters to supplement your rent while paying for your old place.

Offline zubs

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 51
  • -Received: 300
  • Posts: 1342
Re: Rental Leasing Increase
« Reply #38 on: August 24, 2017, 02:03:34 PM »
This is a single story house that is 3/2 but not in Irvine.  It's been a rental since 2010.

Offline spootieho

  • O.C. Resident
  • ***
  • Thanks
  • -Given: 111
  • -Received: 59
  • Posts: 748
Re: Rental Leasing Increase
« Reply #39 on: August 24, 2017, 02:48:02 PM »
an update...for my case above. I finally rented my house out for $2700.  So hopefully the new renters are good.
So my rent went from $2200 to $2700 in one move out at the end of JUN.

$500 more a month.  The hell is going on with this economy?  I feel like a bandit taking that much in rent.
But there were 6 offers.... fuck burning man.

While my new renters were moving in, another couple came to look at the house and were shoo'd away by the new renters.

Are you renting a 2/2?

Seriously, 3 bedroom apartments are $3000 (okay, $2955), an actual townhouse or detached 3bd, a little more.

Rental demand in Irvine and immediate vicinity is very strong, such that if you own a place, financially it may be better to move, landlord and rent than sell and buy.  Essentially using the new renters to supplement your rent while paying for your old place.
Makes sense.

It probably makes more financial sense, though, to sell the $700,000 house and buy 2 $350,000 houses elsewhere and rent them for $2000 per month each. 

Offline Compressed-Village

  • O.C. Resident
  • ***
  • Thanks
  • -Given: 82
  • -Received: 64
  • Posts: 540
Re: Rental Leasing Increase
« Reply #40 on: August 24, 2017, 03:08:47 PM »
an update...for my case above. I finally rented my house out for $2700.  So hopefully the new renters are good.
So my rent went from $2200 to $2700 in one move out at the end of JUN.

$500 more a month.  The hell is going on with this economy?  I feel like a bandit taking that much in rent.
But there were 6 offers.... fuck burning man.

While my new renters were moving in, another couple came to look at the house and were shoo'd away by the new renters.


Are you renting a 2/2?

Seriously, 3 bedroom apartments are $3000 (okay, $2955), an actual townhouse or detached 3bd, a little more.

Rental demand in Irvine and immediate vicinity is very strong, such that if you own a place, financially it may be better to move, landlord and rent than sell and buy.  Essentially using the new renters to supplement your rent while paying for your old place.
Makes sense.

It probably makes more financial sense, though, to sell the $700,000 house and buy 2 $350,000 houses elsewhere and rent them for $2000 per month each.

Offline Compressed-Village

  • O.C. Resident
  • ***
  • Thanks
  • -Given: 82
  • -Received: 64
  • Posts: 540
Re: Rental Leasing Increase
« Reply #41 on: August 24, 2017, 03:10:44 PM »
an update...for my case above. I finally rented my house out for $2700.  So hopefully the new renters are good.
So my rent went from $2200 to $2700 in one move out at the end of JUN.

$500 more a month.  The hell is going on with this economy?  I feel like a bandit taking that much in rent.
But there were 6 offers.... fuck burning man.

While my new renters were moving in, another couple came to look at the house and were shoo'd away by the new renters.


Are you renting a 2/2?

Seriously, 3 bedroom apartments are $3000 (okay, $2955), an actual townhouse or detached 3bd, a little more.

Rental demand in Irvine and immediate vicinity is very strong, such that if you own a place, financially it may be better to move, landlord and rent than sell and buy.  Essentially using the new renters to supplement your rent while paying for your old place.
Makes sense.

It probably makes more financial sense, though, to sell the $700,000 house and buy 2 $350,000 houses elsewhere and rent them for $2000 per month each.

Where do you buy 350.000 and able to rent out for 2K a month? Its easy to punch in some numbers and throw it on the board.

Show me where you have in mind that you can buy on the cheap and collect high rent.


Offline eyephone

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 197
  • -Received: 465
  • Posts: 6966
Re: Rental Leasing Increase
« Reply #42 on: August 24, 2017, 03:12:52 PM »
an update...for my case above. I finally rented my house out for $2700.  So hopefully the new renters are good.
So my rent went from $2200 to $2700 in one move out at the end of JUN.

$500 more a month.  The hell is going on with this economy?  I feel like a bandit taking that much in rent.
But there were 6 offers.... fuck burning man.

While my new renters were moving in, another couple came to look at the house and were shoo'd away by the new renters.


Are you renting a 2/2?

Seriously, 3 bedroom apartments are $3000 (okay, $2955), an actual townhouse or detached 3bd, a little more.

Rental demand in Irvine and immediate vicinity is very strong, such that if you own a place, financially it may be better to move, landlord and rent than sell and buy.  Essentially using the new renters to supplement your rent while paying for your old place.
Makes sense.

It probably makes more financial sense, though, to sell the $700,000 house and buy 2 $350,000 houses elsewhere and rent them for $2000 per month each.

Where do you buy 350.000 and able to rent out for 2K a month? Its easy to punch in some numbers and throw it on the board.

Show me where you have in mind that you can buy on the cheap and collect high rent.


The train already left the station to buy cheap CA property. I guess you can look out of state.

Offline Compressed-Village

  • O.C. Resident
  • ***
  • Thanks
  • -Given: 82
  • -Received: 64
  • Posts: 540
Re: Rental Leasing Increase
« Reply #43 on: August 24, 2017, 03:18:22 PM »
an update...for my case above. I finally rented my house out for $2700.  So hopefully the new renters are good.
So my rent went from $2200 to $2700 in one move out at the end of JUN.

$500 more a month.  The hell is going on with this economy?  I feel like a bandit taking that much in rent.
But there were 6 offers.... fuck burning man.

While my new renters were moving in, another couple came to look at the house and were shoo'd away by the new renters.


Are you renting a 2/2?

Seriously, 3 bedroom apartments are $3000 (okay, $2955), an actual townhouse or detached 3bd, a little more.

Rental demand in Irvine and immediate vicinity is very strong, such that if you own a place, financially it may be better to move, landlord and rent than sell and buy.  Essentially using the new renters to supplement your rent while paying for your old place.
Makes sense.

It probably makes more financial sense, though, to sell the $700,000 house and buy 2 $350,000 houses elsewhere and rent them for $2000 per month each.

Where do you buy 350.000 and able to rent out for 2K a month? Its easy to punch in some numbers and throw it on the board.

Show me where you have in mind that you can buy on the cheap and collect high rent.


The train already left the station to buy cheap CA property. I guess you can look out of state.

Been there done that. Got burned in Arizone Tucson, GA, and even in Durhan NC close to Duke. Rent rate even now for 3/2 bed/bath is around low 1K. I will stick with local rental market.

Offline nosuchreality

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 75
  • -Received: 295
  • Posts: 1288
Re: Rental Leasing Increase
« Reply #44 on: August 24, 2017, 03:31:32 PM »
This is a single story house that is 3/2 but not in Irvine.  It's been a rental since 2010.

Okay, makes sense, old RE101, location, location, location which having been floored by house prices in what was the rougher parts of OC.  I think the primary driver is gentrification and transition to sharing economy.  Neglected unit are bought, upgraded, churned via aggressive rent increase and re marketed for a capitall gain based off of the new proforma rent.   Other higher end units, particularly beach or attraction local units are more profitable via airBNB than as a long term rental.

The net result is a loss of higher quality rentals and substantial pressure on the low end driving all rents up.

IMO when you have a job family or job and good school combo, where you live is relatively inflexible resulting in fairly inelastic demand

 

Talk Irvine Links

[Recent Posts]
[FAQ / Rules]

Site Supporters


Related Links

Recent Posts