Can IAC offer different incentives to new tennants vs current tennants????

wendyinoc_IHB

wendyinoc_IHB

New member
Is that legal to charge one incentive to new residents and one to existing?? Does it have to be in writing? I'm even willing to move in the complex to get the incentive and they said I am not eligible.
 
I am in the same situation. I live in the Village and my lease renewal is coming up in mid April. I asked them for their best offer they can bring to the table. They came back with $35 off my current rent for a 12 month lease and $75 off if I sign up for a 16 month lease.



My exact same unit is going for $200-$250 less for new tenants on 16 month leases. What a joke, give me a F'n break.



I just put in my notice and signed another lease in another community saving me $500/month. I even get a 2 car attached garage. Goodbye Village, good luck filling your vacancies at your ridiculous prices. Don't they realize we are in a recession?????
 
[quote author="rick_r" date=1236642951]I am in the same situation. I live in the Village and my lease renewal is coming up in mid April. I asked them for their best offer they can bring to the table. They came back with $35 off my current rent for a 12 month lease and $75 off if I sign up for a 16 month lease.



My exact same unit is going for $200-$250 less for new tenants on 16 month leases. What a joke, give me a F'n break.



I just put in my notice and signed another lease in another community saving me $500/month. I even get a 2 car attached garage. Goodbye Village, good luck filling your vacancies at your ridiculous prices. Don't they realize we are in a recession?????</blockquote>
Irvine is special and there is no such word in the IAC dictionary. Honestly, they are not being smart by lowering current resident rents closer to the true market (i.e. what they are offering new residents) because we as renters have many choices to choose from, including other IAC complexs. The problem comes from the top, if the leasing folks were incentivized to keep turnover low people who had leasing coming up for renewal would be giving the same pricing as the new residents. Guess they'll have to learn the hard way.
 
I just got my Lease Renewal letter in the mail from IAC over the weekend.

WOW.

They threw me $ 5.00 off a month. I feel so special. Maybe they should have made it a dollar less a month to really make that "special" feeling statement.

Along with a flyer about some lame contest. "Renew your lease

for 13 months or more and you could win free rent". Just seems like a scam

contest to me. IAC sometimes gives me that same feeling as going to discuss

buying a car at a used car dealership. So time for some Apartment hunting.

After 3 years at Quail maybe time to go to Woodbury. It would cut my commute to Orange

down a little and make my trips to the GF in RSM shorter. Moving sucks no matter what.

Even for just a 1 bedroom. Time to troll Craigslist and get my negotiation skills

ready. Let the games begin....
 
[quote author="wendyinoc" date=1236604377]Is that legal to charge one incentive to new residents and one to existing?? Does it have to be in writing? I'm even willing to move in the complex to get the incentive and they said I am not eligible.</blockquote>


They will... they can... and they do. Check out <a href="http://www.irvinehousingblog.com/forums/viewthread/3481/#77034">Cuatro's advice</a> in the lease-renewal thread. You may find that and the other comments helpful. Good luck.
 
It's a common practice among IAC properties to not honor the "new move in specials" for existing customers. They have to make a distinction between new and existing tenants. They need a reason to justify their new marketing campaign without having to take it in the shorts from their existing tenants who want their rent lowered. They fear the slippery slope of you telling all your neighbors how to negotiate that kind of deal. In their eyes, they can't afford to renew everyone at lower rents, so they play hardball with existing tenants while giving away the farm to new ones. They are banking on the fact that you know it's a pain in the butt to move and you'll just lump it for another lease term...and I bet most people do.



There are two reasons why rents are lower for new tenants. 1, the market rent has been lowered. 2, they are being offered a great "move in special." You may be able to make a case to management or the corporate office to bring your rent down to the new market rate. After all, they've determined that to be the fair rent for that unit. But you have no case for trying to get the "new move in specials" because you are obviously not a new move in.



Put the shoe on the other foot for the moment. Let's say you own/run The Village. Let's say you're 12% vacant right now and 88% occupied (you're in real trouble if that's the case). You need to offer an incentive to drum up business. Let's say you'll do 9% off the market rent and maybe throw in a half month free. You would be crazy offer that on all 12% of the available units. You're offering it on, say, half of those available units. Then you scale back your special to maybe 5% off market for the remainder. So what's the real loss. Only a small portion of your units are offered at heavy discount.



Compare that approach with offering 9% off the market rate for every new move in and every renewal. Now your entire building starts off at least 9% below budget for the year - Likely a lot more. You simply can't honor the new move in special for existing clients without ruining your asset. If you've built a budget for landscaping, routine maintenance, and all those cool little community parties you Villagers enjoy, how can you pay for those things when you're budget is crushed?



It may come to the point where IAC has to take drastic measures to keep buildings full, but they turn about as quickly as a freight liner. I'm sure they have another few rounds of layoffs lined up before they consider heavy incentives for their existing tenants.
 
When out lease was up at Pinnacle at MacArthur Place (BRE Properties), we were sent a letter to renew at the same rate or pay a premium of $500 each month to go month-month. I saw some of the same units on a craigslist ad for $50-$200 less per month. I spoke with the leasing office and they said our current rate is competitive to the area ($1,555 for 1BD/1BA, storage unit, 2 subterranean parking, 820 sq ft). They're right in so far as no one else really offers an apartment this large. Luckily I found an deal at Camden's Loft off Jamboree and Main. I had them print up their lease terms with pricing. I took the printout back to BRE and got $60 off per month.



We could have moved for a slightly lower monthly rent, but my wife and I decided we didn't want to hassle with moving our stuff, the new apartment design didn't fit our existing furniture, the management at BRE seems much more professional, Camden only has one congested ingress and egress, and lastly there are too many college students at Camden. Our current lease expires in November and I'm contemplating whether our not to take advantage of the new homebuyer's tax breaks this year or see if I can get an even cheaper rent for another 9 months.
 
I get the theory but what I don't get is I always moved to another IAC to get a deal. So in the end are they really making money as a company ??? This is my 4th property with IAC and I really wanted to stay for once . I saw 8 moving vans on Saturday at the Village so at least I am not alone.

If my apartment sits vacant for three weeks they lose $1800. To me thats a bigger loss then giving us the $1500 move in special. All the work to get the apartment ready.Oh and thats if it rents in three weeks.



[quote author="Cuatro" date=1236647816]It's a common practice among IAC properties to not honor the "new move in specials" for existing customers. They have to make a distinction between new and existing tenants. They need a reason to justify their new marketing campaign without having to take it in the shorts from their existing tenants who want their rent lowered. They fear the slippery slope of you telling all your neighbors how to negotiate that kind of deal. In their eyes, they can't afford to renew everyone at lower rents, so they play hardball with existing tenants while giving away the farm to new ones. They are banking on the fact that you know it's a pain in the butt to move and you'll just lump it for another lease term...and I bet most people do.



There are two reasons why rents are lower for new tenants. 1, the market rent has been lowered. 2, they are being offered a great "move in special." You may be able to make a case to management or the corporate office to bring your rent down to the new market rate. After all, they've determined that to be the fair rent for that unit. But you have no case for trying to get the "new move in specials" because you are obviously not a new move in.



Put the shoe on the other foot for the moment. Let's say you own/run The Village. Let's say you're 12% vacant right now and 88% occupied (you're in real trouble if that's the case). You need to offer an incentive to drum up business. Let's say you'll do 9% off the market rent and maybe throw in a half month free. You would be crazy offer that on all 12% of the available units. You're offering it on, say, half of those available units. Then you scale back your special to maybe 5% off market for the remainder. So what's the real loss. Only a small portion of your units are offered at heavy discount.



Compare that approach with offering 9% off the market rate for every new move in and every renewal. Now your entire building starts off at least 9% below budget for the year - Likely a lot more. You simply can't honor the new move in special for existing clients without ruining your asset. If you've built a budget for landscaping, routine maintenance, and all those cool little community parties you Villagers enjoy, how can you pay for those things when you're budget is crushed?



It may come to the point where IAC has to take drastic measures to keep buildings full, but they turn about as quickly as a freight liner. I'm sure they have another few rounds of layoffs lined up before they consider heavy incentives for their existing tenants.</blockquote>
 
i maybe signing a lease at the village this weekend, what do you guy think is the best deal i can get for a 2bdr/2ba ? ideally its a top floor unit



really appreciate everyone's help on this!
 
From my experience 2 weeks ago...



My wife and I turned in our 30-day notice with the intent to move. We did not have a new place lined up, but we figured with all the IAC complexes available we can find a new place within 3-4 days (if not sooner). Three days AFTER we turned in our notice, we spoke with the leasing agent in our complex and she offered us $250 off of our existing lease amount if we stayed and signed a 16 month lease. We agreed to it and resigned.



I guess my tip to existing IAC tenants is to bluff it. If they call the bluff, then move. If they really want to keep you, they will negotiate.



Best of luck...
 
[quote author="phantom600rr" date=1236682505]From my experience 2 weeks ago...



My wife and I turned in our 30-day notice with the intent to move. We did not have a new place lined up, but we figured with all the IAC complexes available we can find a new place within 3-4 days (if not sooner). Three days AFTER we turned in our notice, we spoke with the leasing agent in our complex and she offered us $250 off of our existing lease amount if we stayed and signed a 16 month lease. We agreed to it and resigned.



I guess my tip to existing IAC tenants is to bluff it. If they call the bluff, then move. If they really want to keep you, they will negotiate.



Best of luck...</blockquote>


if I may ask what was the amount you ended up paying and for how many bedrooms?
 
[quote author="phantom600rr" date=1236682505]From my experience 2 weeks ago...



My wife and I turned in our 30-day notice with the intent to move. We did not have a new place lined up, but we figured with all the IAC complexes available we can find a new place within 3-4 days (if not sooner). Three days AFTER we turned in our notice, we spoke with the leasing agent in our complex and she offered us $250 off of our existing lease amount if we stayed and signed a 16 month lease. We agreed to it and resigned.



I guess my tip to existing IAC tenants is to bluff it. If they call the bluff, then move. If they really want to keep you, they will negotiate.



Best of luck...</blockquote>


Which complex if you don't mind me asking?
 
[quote author="phantom600rr" date=1236682505]From my experience 2 weeks ago...



My wife and I turned in our 30-day notice with the intent to move. We did not have a new place lined up, but we figured with all the IAC complexes available we can find a new place within 3-4 days (if not sooner). Three days AFTER we turned in our notice, we spoke with the leasing agent in our complex and she offered us $250 off of our existing lease amount if we stayed and signed a 16 month lease. We agreed to it and resigned.



I guess my tip to existing IAC tenants is to bluff it. If they call the bluff, then move. If they really want to keep you, they will negotiate.



Best of luck...</blockquote>
That's probably the best strategy to see the hand that IAC is holding. But of course, if they call your bluff you have to be ready to pack up and move.
 
Mmmm... this 16 month lease thing is not the norm. It must be around when TIC thinks the market will rebound to lock you up for that long, and all the while new tenants get cheaper and cheaper rents. I smell desperation. They want to lock you in, because they have accepted what is to come... lower rents. Anyone want to bet this thread will be bumped or a new thread started on how people feel ripped off because the new tenants got a fat discount while they are locked up for a 16 month lease?
 
I know that why its so hard to work with these people. We signed for a place at Quail last night for 1670 versus 2360 which is what I pay now. A $790 savings!! Take that IAC!! If the market keeps falling we can go back to the Village at a lower price.

For the person interested in moving to the Village they are offering 1500 first month plus 100 off the rent if you sign 16. If you take the deal you can't upgrade or move for 16 so be careful.
 
We just signed a lease at Palmeras for more square footage (den), nicer amenities (HW floors and granite), and lower cost per month than we had been paying at another IAC community. They also offered $1200 off move in costs. The new thing is, there is no lease break fee addendum. Instead, you are rent responsible if you move out before your lease ends until the apartment is re-leased. Scary, as I don't plan to break my lease, but who knows what the future holds.
 
[quote author="wendyinoc" date=1236720680]I know that why its so hard to work with these people. We signed for a place at Quail last night for 1670 versus 2360 which is what I paid now. A $790 savings!! Take that IAC!! If the market keeps falling we can go back to the Village at a lower price.

For the person interested in moving to the Village they are offering 1500 first month plus 100 off the rent if you sign 16. If you take the deal you can't upgrade or move for 16 so be careful.</blockquote>
Awww, you should have hit we me up....I live over at Quail Meadows, we could have split the $500 tenant referral bonus.



On a side note, when I first moved to Quail Meadow I got the 1-bed + 1-den for $1,660/month. I really wasn't using the den so I moved to the 1-bed within 4-weeks and am paying $1,420/month. Man, I looked on craigslist and they are now offering that 1-bed and 1-den unit for $1,510 with a 16-month lease.
 
Started Internet Shopping today for another IAC Apartment.

I got some incentive after reading WendyInOC`s post about moving from the Village to Quail.

Anybody have first hand experience with Portola Place ? Looks like its out in the weeds.
 
[quote author="bltserv" date=1236755318]Started Internet Shopping today for another IAC Apartment.

I got some incentive after reading WendyInOC`s post about moving from the Village to Quail.

Anybody have first hand experience with Portola Place ? Looks like its out in the weeds.</blockquote>
Have you checked out some of the 1-bedroom prices on the Woodbury apartments? I was seeing prices around $1,350/month plus incentives.
 
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