Calling IAC Renters - help me renegotiate

SoCal78_IHB

New member
I just got a call today from my IAC leasing office. They want us to sign our lease renewal within a week (even though it's not up for another 2 1/2 mos.)



We have a 2 bdrm / 2 ba, approx 1100 sq ft apartment with detached garage... one year old construction with many upgrades in Portola Springs. Pay $2k/mo on our 8-month lease. (This is with a discount for electronic payment.)



Get this - the girl calling from the office told me she's happy to announce that if we renew our lease for a 1-year term, we "won't have to pay a rent increase!"



I laughed so hard I nearly dropped the phone.



I told her I have been keeping a close eye on the real estate and rental market here and will not hesitate to move if they do not give us a decrease. Before I could finish talking she said that is completely reasonable and they can definitely work something out. Um yeah. Thought so. And she threw in that she could do a decrease even on a short-term lease to boot. Keep it comin', Lady.



I have read a couple things on here from other IAC renters about receiving rent reductions recently... I tried the search bar to find it again but no luck. If you have recently renegotiated your contract, please respond here with details. I want to be armed and ready. I thank you in advance!



She emailed over our official letter and it actually states if we go month-to-month they will raise our rent $350/mo. Holy Mother of God.



I am in flurry mode right now pulling up all the IAC Craig's List ads I can find for comparable apartments. So far, so good. I have found several apartments just like mine asking around $1,740/mo. This is what I want to pay. Do you think this is reasonable? I am printing everything out including floorplans and will show it to the manager.



One other question... in these times of downward pressure on rents, does anyone think it would actually be preferable to indeed go month-to-month so that the rate could be renegotiated more frequently to keep up with current (lower) rates?



That's all for now -- SoCal
 
The best ammunition to get a decrease is to visit other properties and find something that you actually would move to. It can more expensive or less expensive, but must be a better value.



A particularly productive avenue can be visiting on the new communites adjacent to Woodbury. They have a lot of inventory and are willing to deal, and the managers of existing communites are very aware of the downward price pressure these new units are creating.



I don't think you have to actually quote a unit and price on the value comp, but when you deal with the community manager, make it clear that you know specfics and mention the competitive community name.



Keep the tone cooperative but firm. Make it clear you are willing to leave, and figure out the specific amount of the reduction you expect and for which you are willing to re-sign . Don't expect them to bid the price down alone.



My personal opinion is that a shorter term isn't worth it, even in the downward trending market, but for others the strategy might make sense.



Good luck and let us know how it goes.



SCHB
 
Rent is going up, because demand is going up. People are waiting to buy a house rent, foreclosed families rent, then there are people who like renting. It's a fact we have to live with. The only thing that will help Irvine or san diego is massive layoffs from every sector. Sure the rents will be a tad lower, but you wont have a job.
 
[quote author="PadreBrian" date=1224976587]Rent is going up, because demand is going up. People are waiting to buy a house rent, foreclosed families rent, then there are people who like renting. It's a fact we have to live with.</blockquote>


Home prices will never decline here in Southern California. We have a great diversified economy and fantastic weather. Everyone wants to live here but we are running out of land, so supply and demand mean that these high prices are just a fact we have to live with. Also, there are no Americans in Baghdad.
 
[quote author="SoCal78" date=1224929928]I just got a call today from my IAC leasing office. They want us to sign our lease renewal within a week (even though it's not up for another 2 1/2 mos.)



We have a 2 bdrm / 2 ba, approx 1100 sq ft apartment with detached garage... one year old construction with many upgrades in Portola Springs. Pay $2k/mo on our 8-month lease. (This is with a discount for electronic payment.)



Get this - the girl calling from the office told me she's happy to announce that if we renew our lease for a 1-year term, we "won't have to pay a rent increase!"



I laughed so hard I nearly dropped the phone.



I told her I have been keeping a close eye on the real estate and rental market here and will not hesitate to move if they do not give us a decrease. Before I could finish talking she said that is completely reasonable and they can definitely work something out. Um yeah. Thought so. And she threw in that she could do a decrease even on a short-term lease to boot. Keep it comin', Lady.



I have read a couple things on here from other IAC renters about receiving rent reductions recently... I tried the search bar to find it again but no luck. If you have recently renegotiated your contract, please respond here with details. I want to be armed and ready. I thank you in advance!



She emailed over our official letter and it actually states if we go month-to-month they will raise our rent $350/mo. Holy Mother of God.



I am in flurry mode right now pulling up all the IAC Craig's List ads I can find for comparable apartments. So far, so good. I have found several apartments just like mine asking around $1,740/mo. This is what I want to pay. Do you think this is reasonable? I am printing everything out including floorplans and will show it to the manager.



One other question... in these times of downward pressure on rents, does anyone think it would actually be preferable to indeed go month-to-month so that the rate could be renegotiated more frequently to keep up with current (lower) rates?



That's all for now -- SoCal</blockquote>


We paid roughly $1700 in 2004 for a posh 2 BR/2B in Turtle Ridge. The IAC sent a notice for a rent increase but when we told them we were leaving, they said they would lower the price(very small decrease) or keep it the same(I can't remember which).
 
The IAC lowered our from 1780 to 1610.... That was this last year. We still have many open spots here.... I say look at the comps in your area and go in with an informed decision. But of course be ready to move....

good luck

-bix
 
[quote author="biscuitninja" date=1224986148]The IAC lowered our from 1780 to 1610.... That was this last year. We still have many open spots here.... I say look at the comps in your area and go in with an informed decision. But of course be ready to move....

good luck

-bix</blockquote>
Which complex do you rent in?
 
[quote author="PadreBrian" date=1224976587]Rent is going up, because demand is going up. People are waiting to buy a house rent, foreclosed families rent, then there are people who like renting. It's a fact we have to live with. The only thing that will help Irvine or san diego is massive layoffs from every sector. Sure the rents will be a tad lower, but you wont have a job.</blockquote>


How do I remove a thank...this doesn't deserve a thank....I thanked the wrong person.
 
Let's not forget there are people moving out of California now that jobs are disappearing.... and a glut of rentals.



SoCal, I found a place and got a price....then presented that deal to my current landlord. He didn't want to lose a good tenant, so he dropped it $350 a month. I know the fact that he had 2 of 3 units vacant helped my negotiations....but the fact I had actually found a place and was ready to move actually lit a fire under his butt to make a decision, and fast.



So I'll be staying. Like Bix said though, be ready to move (and save $$!) :)



Seems like you are doing all the proper research. Their bad if they don't listen to reason.
 
[quote author="usctrojanman29" date=1224991368][quote author="biscuitninja" date=1224986148]The IAC lowered our from 1780 to 1610.... That was this last year. We still have many open spots here.... I say look at the comps in your area and go in with an informed decision. But of course be ready to move....

good luck

-bix</blockquote>
Which complex do you rent in?</blockquote>


The place shall remain anon... but i'll send ya a pm.

-bix
 
SoCal78, our Lease is up for renewal in mid-Jan so I'll let you all know what happens..



I can't give you any advice on re-negotiation I'm afraid, I failed miserably last time... :-S
 
[quote author="SoCal78" date=1224929928]Get this - the girl calling from the office told me she's happy to announce that if we renew our lease for a 1-year term, we "won't have to pay a rent increase!"



I laughed so hard I nearly dropped the phone.



I told her I have been keeping a close eye on the real estate and rental market here and will not hesitate to move if they do not give us a decrease. Before I could finish talking she said that is completely reasonable and they can definitely work something out. Um yeah. Thought so. And she threw in that she could do a decrease even on a short-term lease to boot. Keep it comin', Lady.



I have read a couple things on here from other IAC renters about receiving rent reductions recently... I tried the search bar to find it again but no luck. If you have recently renegotiated your contract, please respond here with details. I want to be armed and ready. I thank you in advance!



She emailed over our official letter and it actually states if we go month-to-month they will raise our rent $350/mo. Holy Mother of God.

</blockquote>


One note I'd add, is that you'd be well-served to keep in mind that the office, in the end, can be your best friend. There is a German proverb that translates roughly, <strong>"What the lion cannot manage to do the fox can."</strong> i.e. you might not need to tear someone's head off to get your best deal, but instead maybe just giving them the opportunity to "help" with your request and keeping them <u>on your side</u> could be a more effective strategy.



With that said, sometimes going for the jugular is fun too!



Good luck.
 
Thanks, IR2. Don't worry - I don't have any intention of going in with guns blazing. I have a background in customer service myself so I have an idea of what will work and what won't. You are right, you catch more flies with honey. I'm nervous. I'm going in in a few minutes. I really, really do not want to move again so soon after having just moved four months ago. It's unlikely I would move even if I could save a couple hundred a month elsewhere but I want a fair rate. I should find out today and will update. Thanks, all.
 
[quote author="IrvineRealtor" date=1225067502]



One note I'd add, is that you'd be well-served to keep in mind that the office, in the end, can be your best friend. There is a German proverb that translates roughly, <strong>"What the lion cannot manage to do the fox can."</strong> i.e. you might not need to tear someone's head off to get your best deal, but instead maybe just giving them the opportunity to "help" with your request and keeping them <u>on your side</u> could be a more effective strategy.



Good luck.</blockquote>


I follow this creedo. It is much easier to be a friend and ally than to be an opponent. A friend will sacrifice for you, an opponent will not.

good luck

-bix
 
Update:



Just got back from meeting with the leasing office manager.



I went in with a pleasant, upbeat attitude and made conversation. Told her what we like about the community, complimented their helpful team, and said that if it can be a fair value, we would like to stay... however with the flood of rentals on the market including two new IAC complexes nearby, Mirasol and Palmeras, we feel like we could get a better deal by moving to an even newer apartment with more amenities, a more convenient location that is closer to our son's school, and at a better value. I showed her my print-outs of move-in specials and Craiglist ads. She understood that there are some good deals out there and said that she's "not supposed to do this" but that they could offer us a decrease of $100 off a month if we signed a 12-mo lease (so that would be $1,950.) She also offered us a neighboring unit that has same number of beds and baths but smaller square footage and that would be at $1,850. I told her if I was going to the trouble of moving it probably would be to another complex instead of the neighboring unit. I thanked her for the offer and asked if she couldn't go lower with the rate, if she could at least give us a concession... such as 1/2 off the first month (i.e. $1k.) She said she can not. She said our floorplan is in demand so they have "no reason" to offer much concessions. I asked what their vacancy rate is. She said 8%. I told her she's been so helpful... that I would have to think about it but so far I'm leaning towards not renewing. I told her that if she can find any other way to help us lower the rate or find another concession that I would be more than happy to write a glowing letter of appreciation for her service. She told me wait -- she said could give us a $250 credit for renewing the lease and she also said she would talk to her boss on Monday and see what else can be approved. So I should find out sometime in the next few days what their very best offer is.



As it stands now the best offer, again, is $100/mo rent decrease on a 12-mo term and a $250 credit for renewing. I will update when I hear from her in a couple days.
 
UPDATE



As soon as I hit submit on the last reply... lo and behold my phone rang. It was the manager I talked with. She said got to talking with some other managers and she just found out IAC is working on a new attractive offer for all lease renewals - the details of which she doesn't know yet and will be shared next week. She told me not to make our decision just yet and sit tight. So all of you looking to renew soon -- check back to find out what this "attractive new offer on IAC lease renewals" is.
 
So, if you'd signed the lease on Her original terms you would have just got "No increase"..plus you would have missed out on their new incentives...



This re-confirms that IAC are, to put it politely, not very nice :mad:
 
I just got my letter today from San Carlo (we are up on Dec 31st). $25/mo INCREASE per their letter, to $2,475 for the 3 bed townhome. I called immediately and politely (as suggested above) told them to go back to the drawing board on that one. Community manager will be contacting me later this week to review options....I'll let you know how it goes, I'm going to follow the same tactic as suggested here. The chance we renew is about 5% at this point anyway, as we have decided to pack up and head for Northpark and squat there until Orchard Hills comes online.



If any one knows of any good pp rentals inside Northpark (up to $3k) give me a PM. Any love/hate stories on the IAC at Orchard Hills also appreciated.
 
[quote author="SoCal78" date=1225084148]She said our floorplan is in demand so they have "no reason" to offer much concessions. I asked what their vacancy rate is. She said 8%.



As it stands now the best offer, again, is $100/mo rent decrease on a 12-mo term and a $250 credit for renewing. </blockquote>


They must be on drugs. There's no way, with all the vacancies right now, that their floorplan is "in demand." Ridiculous. If you're a good tenant, and I'm assuming you are, they should be bending over backwards to keep you as a tenant.
 
[quote author="Anon." date=1225141614][quote author="SoCal78" date=1225084148]She said our floorplan is in demand so they have "no reason" to offer much concessions. I asked what their vacancy rate is. She said 8%.



As it stands now the best offer, again, is $100/mo rent decrease on a 12-mo term and a $250 credit for renewing. </blockquote>


They must be on drugs. There's no way, with all the vacancies right now, that their floorplan is "in demand." Ridiculous. If you're a good tenant, and I'm assuming you are, they should be bending over backwards to keep you as a tenant.</blockquote>
I've downgraded from a 1bed & 1den to a 1bed within my 30 day period and will now sign a 6-month lease instead of a 12-month lease. I have a feeling that I'll have some amno to negotiate a decrease in rents by then.
 
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