curious george
Member
How can I find the market rate for the area we live at? by looking at the various websites, I see what was the asking price/rate, but that does not mean that this was the agreed upon rate, isn't that right?
Rental Leasing Increase
- Thread starter irvinebullhousing
- Start date
If the owner's aren't getting what they're asking, then they're asking too much, and the property has sat long enough for them to have figured it out before they'll agree to something less. If the market is hot, then rentals priced "at market" will get rented out quickly. I would never think to haggle on rent in a hot market if I'm needing to get into a place quickly, and the price is fair for what's out there.
momopi
Well-known member
I've been a landlord for almost 2 decades now. I only raise the rent when the tenant moves out. The cost of getting a new tenant is usually a lot more than a small increase in rent.
When you have a tenant who is hassle free and pay their rent on time, it's not worth the risk of losing them just to up the rent by $100. I can afford not getting that $100, but the prospect of having the unit sit empty for ~3 months plus cost of cleaning/painting/repairs would make me choke.
If you own multiple rental homes, having 2 or more tenants move out around the same time is like losing a high stake Ferengi game of Tongo.
When you have a tenant who is hassle free and pay their rent on time, it's not worth the risk of losing them just to up the rent by $100. I can afford not getting that $100, but the prospect of having the unit sit empty for ~3 months plus cost of cleaning/painting/repairs would make me choke.
If you own multiple rental homes, having 2 or more tenants move out around the same time is like losing a high stake Ferengi game of Tongo.
zubs
Well-known member
The problem here is my rental went from $2100 back in 2010 to.....What zillow is saying..$2800 now.
It's not $100 difference, it's $700. So in 7 years it's gone up $100/year.
Check your current rental house regarding how much you can rent it for at current market prices. If your renter has been in that house for more than 5 years, you are probably losing $500/month if you haven't raised rents.
It's not $100 difference, it's $700. So in 7 years it's gone up $100/year.
Check your current rental house regarding how much you can rent it for at current market prices. If your renter has been in that house for more than 5 years, you are probably losing $500/month if you haven't raised rents.
usctrojancpa
Well-known member
zubs said:
Typically rents have risen by the same amount as inflation or about 3% per year. Rents have increased about 8-10% from 2015 to now due to an improving job market and economy. That being said, renters are extremely price sensitive and even a $50-$100/month difference will result in potentially additional time to get the home rented.
irvinehomeowner
Well-known member
Getting tenants in Irvine is pretty easy with tons of students looking for homes... you just have to deal with the headaches (and the neighbors complaining to you).
I remember rents went up $500 in 2 years back in the 2000s when we were renting out our Irvine home. We increased the rent $500 after the previous tenants moved out and I remember my father saying that was crazy. We got 5 applicants and ended up discounting the monthly by $100 because they signed a 2-year lease.
If I didn't dislike landlording so much, I would get back into the Irvine rental market... even at low cash flow as long as the rent covers costs. Although Panda's one house at a time equation might work better in Johns Creek... unlike all the companies in Cali, I can't move out of state.
I remember rents went up $500 in 2 years back in the 2000s when we were renting out our Irvine home. We increased the rent $500 after the previous tenants moved out and I remember my father saying that was crazy. We got 5 applicants and ended up discounting the monthly by $100 because they signed a 2-year lease.
If I didn't dislike landlording so much, I would get back into the Irvine rental market... even at low cash flow as long as the rent covers costs. Although Panda's one house at a time equation might work better in Johns Creek... unlike all the companies in Cali, I can't move out of state.
zubs
Well-known member
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.
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.
irvinebullhousing
Well-known member
That's pretty surprising for his actions. I remembered when I was a renter, myself, I rented a house and for the first three months the owner would comes to the front door on the 1st of the month to collect the rent. It was around 300 hundred below market comp and I was so happy.
Then on a fourth month into my 1 year lease, a note comes from sheriff notify us we have to vacate as the property is foreclosed. At the time I was living with my brothers and I carried few possessions, nonetheless it was a hectic and so much hassle experience, that I would not want anyone to endure. Then I realized the owner at the time when we signed the lease, she known full well that she never pay her mortgage debt and intended to just pocket our rent check. So even when renting you better do your due diligence.
Then on a fourth month into my 1 year lease, a note comes from sheriff notify us we have to vacate as the property is foreclosed. At the time I was living with my brothers and I carried few possessions, nonetheless it was a hectic and so much hassle experience, that I would not want anyone to endure. Then I realized the owner at the time when we signed the lease, she known full well that she never pay her mortgage debt and intended to just pocket our rent check. So even when renting you better do your due diligence.
usctrojancpa
Well-known member
zubs said:
Sounds like you have a great tenant...hold on to them.
Compressed-Village said:
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.
irvinebullhousing
Well-known member
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.
illinoisjoe
New member
zubs said:
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.
I'm not a landlord, so I'm a bit ignorant.zubs said:
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.
zubs
Well-known member
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.
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.
nosuchreality
Well-known member
zubs said:
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.