Calling IAC Renters - help me renegotiate

NEW -> Contingent Buyer Assistance Program
Cuatro said:
My pleasure PeterUK.

Bltsrv, Yes, except for the smallest properties, the r-l website only includes a handful of what's available by plan. They don't want to publicly give away too much info.
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Do you see any chance that IAC will decrease market rents at their properties if the rental market remains soft or will they keep the market rents the same and let the LAs give bigger incentives such as free rent or large rent discounts?
 
PeterUK said:
Cuatro, thank you for taking the time to explain all this to us, I really appreciate it...

This will be my second lease renewal and we have been good Tennants, at least we have that going for us..

Troop, congratulations on your decrease !!
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Honestly, you'll most likely have to move to a new complex to get a big drop in your rent. I'm guessing they'll at most offer you $100-$150 off your current rent and maybe throw in some kind of retention bonus like they did for SoCal.
 
One of the reasons for the drop in rental rates may be that homeowners who are struggling are probably renting out rooms now and younger folks (early 20s folks) are most likely moving back home living with the parents besides the obvious reasons of increased unemployment.
 
USC, I can only speculate that they will try to maintain the "market rent" with huge discount model. Lowering their so-called market rents seems like the last thing they would do.

But who knows...
 
A good way to see what the bottom of the barrel pricing is for IAC apartment complexs is to go onto craigslist.org and type in the complex in the search.
 
I think IAC will have to come down in rent for renewals. People will have no problem apartment hopping in this economy. They do have power to negoiate more then you think. My sister has a 1 bedroom (750 SqFt) at the Village for $1350!! She moved in June so this was before the world new about the word Recession!! Don't forget you can upgrade for $100. This is a secret rule they have. So if you see a deal bigger place etc you can move anytime if its more then $100.
 
wendyinoc said:
I think IAC will have to come down in rent for renewals. People will have no problem apartment hopping in this economy. They do have power to negoiate more then you think. My sister has a 1 bedroom (750 SqFt) at the Village for $1350!! She moved in June so this was before the world new about the word Recession!! Don't forget you can upgrade for $100. This is a secret rule they have. So if you see a deal bigger place etc you can move anytime if its more then $100.
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Partially true, Wendy. You actually have to spend $100 more per month AND have lived at your current complex for at least 6 months to be allowed to transfer to a new property without breaking your lease.

The only other catch is that you have to still give a 30 day notice at your current place. When you give your notice you need to show them that you've held an apartment elsewhere in order to not be chargd lease break. If your move in date on the new place is 30 days out (to avoid overlapping rent) that means you've held an "on notice" apartment raher than a vacant (where you have to move in w/in 2, maybe 3 weeks). Since the best deals are available on vacants, you likely aren't getting the best deal unless you have overlapping rent.

Your sister got a great deal...but new move-ins tend to always get better deals than renewals for the reasons mentioned earlier.
 
OK, HERE'S THE SCOOP...

I was getting impatient as it had been a week since I spoke with the manager and I hadn't heard anything. But, she did call today and gave me the details of the aforementioned "renewal special".

The "special" is $25 off of current market rate (the prices listed on their site) OR continuing at your current rate, whichever is "more" (and that's IT.) I didn't understand if she meant whichever is "more" of a discount, or "more" of a price. I asked her to clarify but I did not understand her answer, sorry. She spent a lot of time telling me how they calculate it but never really said which one is the number they go with.

In any case - I reminded her that last week she offered me $100 off my current monthly rate and she sounded very regretful of that. She said she spoke to her boss and it is not something she was supposed to do at all but that since she has offered it, she has to stand by it, but that nobody else would get it. I told her she also offered me a $250 credit to renew and she said she thinks that offer has expired! (Wait - what?? I told her she never said anything about any expiration date. She said she would check to see if she could offer it and call back...) Before she hung up I told her that I will need to know how they prefer to receive an "intent to vacate" notice - such as a form to fill out or just putting in our own writing. (Thanks, Cuatro.)

Fast forward - she calls back and tells me that $250 credit for renewing has expired. Great! (Remember, she told me not to decide anything yet because a better deal was in the works.) So then she says the boss has authorized one of two choices: $100 off our current monthly rate on a 12 mos. lease OR $250 off our first month up-front.

I expressed appreciation for getting back to me and doing what she could ... but let her know that this offer is not enough to make me jump.

I did ask for you guys if the renewal special applies to the other IAC complexes. She said it really depends on each individual complex and will vary by the age of the complex as well as other factors. She did say IAC offers a "longevity discount" for those who have rented at least 3 years.

So, that's pretty much it in a nutshell. I am pretty disappointed with the inconsistent information I was given and the seemingly disorganized approach to negotiating. I am NOT happy about her reneging on last week's offer and blaming it on a non-existent expiration date. IAC has lost points in my book. (I do think the manager wanted to help more and just couldn't. I don't blame her - I think she was just shooting for the stars.)

Well, for all you other IAC renters maybe you can try and do better than I did. If all else fails, you can mention that your "friend" in P.S. was offered $100 off a month (since that is the deal we will probably take IF we decide to stay.) Our lease isn't up until New Year's Eve so I've got some long, hard thinking to do. Darn, I was hoping this would be an easier decision.

- SoCal78
 
That's realy a shame, SoCal. I would caution you to keep in contact with them...if they hit you with an imaginary expiration date on the $250, I'm guessing you could be risking your $100 deiscount if you take another month to make your decision. As far as turning in the 30 day notice is concerned, in this case, she could conceivably use that as an excuse to "expire" the current offer. It sounds like she's already been scolded for what she offered you and she may be looking for any excuse to justify voiding it. If you like the place and don't intend to move, jump at the $100 and consider it a BIG victory.

There is a longevity discount. After two full years you can renew at 3% below market. After 3 years, it's 4% off market capping out at 5 or 6% I think. But even that has its grey area. Some properties will still not use that as a tool to LOWER your rent below what you're currently paying. IE if you're already within 1% of market after your second full year most/many places will renew you at a $0 increase rather than offer you the additional 2% decrease the "discount" seems to suggest. Also, the discout follows the apartment, not the resident. If you transfer to another apartment in the same communty, your longevity discounts starts from scratch.
 
SoCal78 said:
OK, HERE'S THE SCOOP...

I was getting impatient as it had been a week since I spoke with the manager and I hadn't heard anything. But, she did call today and gave me the details of the aforementioned "renewal special".

The "special" is $25 off of current market rate (the prices listed on their site) OR continuing at your current rate, whichever is "more" (and that's IT.) I didn't understand if she meant whichever is "more" of a discount, or "more" of a price. I asked her to clarify but I did not understand her answer, sorry. She spent a lot of time telling me how they calculate it but never really said which one is the number they go with.

In any case - I reminded her that last week she offered me $100 off my current monthly rate and she sounded very regretful of that. She said she spoke to her boss and it is not something she was supposed to do at all but that since she has offered it, she has to stand by it, but that nobody else would get it. I told her she also offered me a $250 credit to renew and she said she thinks that offer has expired! (Wait - what?? I told her she never said anything about any expiration date. She said she would check to see if she could offer it and call back...) Before she hung up I told her that I will need to know how they prefer to receive an "intent to vacate" notice - such as a form to fill out or just putting in our own writing. (Thanks, Cuatro.)

Fast forward - she calls back and tells me that $250 credit for renewing has expired. Great! (Remember, she told me not to decide anything yet because a better deal was in the works.) So then she says the boss has authorized one of two choices: $100 off our current monthly rate on a 12 mos. lease OR $250 off our first month up-front.

I expressed appreciation for getting back to me and doing what she could ... but let her know that this offer is not enough to make me jump.

I did ask for you guys if the renewal special applies to the other IAC complexes. She said it really depends on each individual complex and will vary by the age of the complex as well as other factors. She did say IAC offers a "longevity discount" for those who have rented at least 3 years.

So, that's pretty much it in a nutshell. I am pretty disappointed with the inconsistent information I was given and the seemingly disorganized approach to negotiating. I am NOT happy about her reneging on last week's offer and blaming it on a non-existent expiration date. IAC has lost points in my book. (I do think the manager wanted to help more and just couldn't. I don't blame her - I think she was just shooting for the stars.)

Well, for all you other IAC renters maybe you can try and do better than I did. If all else fails, you can mention that your "friend" in P.S. was offered $100 off a month (since that is the deal we will probably take IF we decide to stay.) Our lease isn't up until New Year's Eve so I've got some long, hard thinking to do. Darn, I was hoping this would be an easier decision.

- SoCal78
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Sorry to hear that you didn't have better luck in getting a great deal on your renewal. Go to craigslist.org and check out the rents offered at other possible IAC apartment complexs of the floorplans you like and determine how much you would save per month versus if you were to renew at $100 off. Annualize that costs savings subtract out the cost of moving and see if it is sufficient to make the decision to move. If I'm not saving more than $1,500-$2,000 for the year then it's not worth it to move (i.e. the 1 bedroom unit I rent now at Quail Meadow for $1,445/month is available for $1,380 over at Serrano so I'm not gonna move because the numbers don't work out for me to move).
 
Thanks, Cuatro & USC.

Cuatro: I will definitely take your advice into serious consideration.

USC: Yes, I've checked Craig's. The rates shown there on my place are pretty much identical to market rates but I found some good deals on other properties that I printed out and took into the negotiation with me. Thanks for weighing in. I appreciate it.

If I accept, do you guys think this still warrants a "glowing letter of appreciation" that I had offered in the first place? I am torn. On one hand I feel gypped. On the other, I think she did try and at least I got something or more than a regular renewal is given (or so she says). I don't want to go back on my word... yet she went back on hers. Ugh, I don't know.
 
I wouldn't worry about the letter. If it read anything like, "you're management staff is great, they gave me this incredible incentive to stick around..." you may just be highlighted the behavior that gets them in trouble.

On the other hand, I'm all for giving a well earned attaboy if they've impressed you in other areas.
 
SoCal78 said:
Thanks, Cuatro & USC.

Cuatro: I will definitely take your advice into serious consideration.

USC: Yes, I've checked Craig's. The rates shown there on my place are pretty much identical to market rates but I found some good deals on other properties that I printed out and took into the negotiation with me. Thanks for weighing in. I appreciate it.

If I accept, do you guys think this still warrants a "glowing letter of appreciation" that I had offered in the first place? I am torn. On one hand I feel gypped. On the other, I think she did try and at least I got something or more than a regular renewal is given (or so she says). I don't want to go back on my word... yet she went back on hers. Ugh, I don't know.
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If they are advertising market rents on craigslist then that probably means that your complex has a relatively high occupancy rate. I know that my complex is 93% leased (or maybe even lower) which is probably why I got 9% off the market rate. As Cuatro stated before, the lower the occupancy rate of a complex the more inclined the leasing folks will be in discounting it. You also have to weigh in the intangible value of the area that you live in now vs. where you would live if you moved. For me, picking between Quail Hill or being by Tustin Marketplace was a no-brainer (I mean, I have lived in Quail Hill for about 4 years now so I'm pretty comfy here).
 
"If they are advertising market rents on craigslist then that probably means that your complex has a relatively high occupancy rate. I know that my complex is 93% leased (or maybe even lower) which is probably why I got 9% off the market rate. "

The manager said the vacancy rate here is 8%.
 
SoCal78,

I skimmed this thread and am sorry the negotiations didn't go as well as you expected. One thing to remember is to do the math. Finding a new home is a very emotional event in everyone's life but it's time like this I recommend that you take a step back and calculate what it means to stay in the "home" or to find a "new home".

The $100/month savings over 12 months... Is that a better financial choice compared to the cost and time for moving to another location? Can you move at a fraction of the cost of $1200? Would save on utilities? gas for your commute? Emotions aside, the numbers will paint the real (and sometimes ugly) story.

You can also use the math to help with the negotiations as well. ;) Also talk with some trusty realtors that may have empirical data on PP market rents in the surrounding area (like in Woodbury, Northwood, or Northpark).

Hang in there and wish you the best in all of this.
 
SoCal78

I too was able to get about $100.00 off my IAC after trying every angle I could think of back in May.

Been at my IAC just over 2 years now. I signed a 12 month for that $ 100.00 off. Its better

than nothing and moving.

One item to be careful of. Watch your conratct for the Lease Break Fee. They will try and up it to $ 3000.00. When I renegotiated I specifically asked "any other changes or ammendments"?. The agent said. "No other changes" then low and behold the lease break fee doubles.

Needless to say they fixed it back down but gave the lame excuse that the IAC wants to try

and change that fee by default.

Think of it this way. At least we didnt lose $ 100K in equity this year like my GF did

on her house.
 
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