Rental Market of High End Homes

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NoSoup4U

New member
One of the many reasons that makes me hesitate buying a "higher end" home such as the Summit in Turtle Ridge is that it looks like it would be very difficult to rent the property if I ever had to relocate for work.  I also imagine the rental/ownership cost disparity must be larger with these more expensive homes.  Is there a healthy market for tenants of these 1.5 million dollar homes in TRG?
 
go to irvinerealtorsite (IR2's page) and look at the closed leases.

looks like 54/2250 irvine leases were for $5k or more (using 2010 numbers)

seems like a pretty small slice of the market that could support a $1M+ sales priced rental.
 
wow, that file is very cool.

from IR2 excel file, it looks like there were 8 places that rented for 5k or more.

Address Sales Price DOM
34 Arcade $5,250 76
54 Sweet Bay $5,000 118
31 Climbing Vine $5,000 22
37 Rose Trellis $6,300 24
41 View Ter $5,900 42
25 Summer House $5,400 163
42 Arcade $6,000 75
59 Valley Terrace $5,400 0


 
That is great info!  I assume these are only properties that were rented through the MLS?

From the looks of it, these rental prices do not even come close to covering the ownership costs given a 20% down payment.
 
NoSoup4U said:
That is great info!  I assume these are only properties that were rented through the MLS?
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  Correct.

NoSoup4U said:
From the looks of it, these rental prices do not even come close to covering the ownership costs given a 20% down payment.
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  Keep in mind that many/most of the homes purchased in this price range are leveraged to a lesser degree (if at all) than some of the lower-priced homes.

-IR2
 
NoSoup4U said:
How much does an owner typically pay in commission when renting out a house through the MLS?
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Depends on what they want done... but it is typically double what is advertised as the buyer's agent coop.  Sometimes it is a flat fee, as well.
 
NoSoup4U said:
How much does an owner typically pay in commission when renting out a house through the MLS?
Click to expand...
If it isn't a flat fee, I've seen it range from 2% to 3% of the annual rent to each agent (depends on the listing agreement the landlord has with their listing agent). 
 
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