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OK let's go with your thoughts which I guess is the one article you linked for our information. So, all these people (renters) that are in strong position with their LL...where will they move to if LL doesn't drop his rent? Those people that have been put out on the street thru foreclosure...where will they live after their ,negotiatings falter with LL..LL says your credit is ka ka and I WON'T rent to you...whjere are they going???
Options: Park bench, Mama's, Cats., Lynx, shelter, crack house...
Don't think I am being dramatic. Whole new world with different parameters.
Anyone who has rented in NYC knows what I am saying when I refer to roommates and lowering expectations about the size of the space one can rent at a certain price point.
Rent in NYC doesn't go down - the # of occupants per rental unit simply goes UP - in order to pool resources and pay the rent.
Yes I saw your thread and I'm sorry to say I don't agree. BUT, who am I to say that I'm right? I didn't mean to say a "bet" of a million $$$$$. aganist YOUR 2 million. LOL.
LOL.
Ok, what don't you agree about the article. It is stating a hard fact that rents have already decreased. So what you are saying makes no logical sense. How can you say they won't decrease? It already has!
Here's another article. It pretty much states/shows that during recessions rents decrease. Why will it be different this time? And this time the recession will be longer than the one in 2000/2001.
This one states "At first pass, that might not make a whole lot of sense. If homeownership is on the decline, shouldn't apartment buildings be swamped with interest? As it turns out, those two things don't neatly seesaw. The demand for apartment rentals is largely linked to employment." However in the future it says rents will rise after some years.
Since you are putting a million in, I wouldn't bet on just rents increasing, look at the worst case scenario and then put your million in.
The New York-Wayne-White Plains metro area is a vast area that includes New York City and the suburbs of northern New Jersey and Westchester County. Rents, along with home prices, had been growing in Manhattan until the financial crisis took hold in mid-September. Since then, rents have dropped as landlords adjust to the new reality. Major layoffs at financial firms and in other sectors have forced tenants to give up expensive apartments and move in with parents or roommates. The unemployment rate climbed to 6% in November 2008 compared to 4.6% in November 2007. The apartment vacancy rate jumped to 4% in the fourth quarter last year from 3.4% in the same period in 2007. Landlords on average are giving rent concessions of 1.1 weeks.
In the article that the other post
OK let's go with your thoughts which I guess is the one article you linked for our information. So, all these people (renters) that are in strong position with their LL...where will they move to if LL doesn't drop his rent? Those people that have been put out on the street thru foreclosure...where will they live after their ,negotiatings falter with LL..LL says your credit is ka ka and I WON'T rent to you...whjere are they going???
It's not about fighting with the landlord or dissing him, it's about the higher vacancy rate that he is experiencing. If a person lost their house due to a layoff and have zero income, how will they be able to pay for rent?
now, there is a difference between apartment rentals and the private home rentals. Apartment communities are usually owned by corporations that set the standards for their rent, qualifications, etc. Private landlords (not many of them in the apartment market here in Charlotte) have a little more leeway and most of them have retained the services of a management company to prevent those 2 am calls..."my toilet is stopped up!"
Private landlords such as yourself, John, just need to be very careful that the rent that you offer to people is the same for everyone; or you will have a discrimination lawsuit on your hands. The fair lending people have private shoppers that regulate that. (another reason that most private landlords go with a management company) As a former property manager here in Charlotte, I am well aware of all of the federal regulations, etc that must be followed.
Rents here in Charlotte will either stabilize or go down. Some of the main criteria for renting here is a 6 month job history and excellent credit. People without jobs and the credit that shows a foreclosure are not likely to be able to rent here. Since the availability of that kind of renter will become more and more scarce, there will be a glut of rentals which will drive the price down.
The reason that the criteria for renting is so strict is that LL are held responsible if their tenant sells drugs for example or does a lot of other illegal stuff. Additionally, it is very expensive to evict people and time consuming (4-6 months average). People also destroy homes which are very expensive to repair. You would be amazed at what people do to houses/apartments. LL have created that criteria out of self protection. Suggest that you contact the Charlotte Apartment Association and speak with Ken Szymanski for more information before you buy that million dollars in rentals here.
Just the perspective of someone who has been in the business here in Charlotte.
"They" won't be able to pay the rent...you're right
Quote:
Originally Posted by sheenie2000
It's not about fighting with the landlord or dissing him, it's about the higher vacancy rate that he is experiencing. If a person lost their house due to a layoff and have zero income, how will they be able to pay for rent?
OK let's do it your way.
"They" (people without jobs or income) will not be able to pay for anything. Right?
So here are the alternatives as I see it:
1) Live in a "we are a one world" society as out current Pres. proposed when seeking the office.Receive gov. money. Not a lot but perhaps better than living on a park bench. At some point your benefit period will run out or the guberment will run out of money and you're right back to the park bench.
2) Overthrow the rich.Not said in jest and it is something that I think is a real possibility if things continue to deteriorate.One way in answering your question "how will they be able to pay the rent?" You may not like this answer and think it naive but you are the one suggesting that people without jobs or income will not be able to pay. Masses take over the real estate holdings from landlords in an overthrow of society. Can happen. Hope they wait a few more years so I can buy my ticket to housing in the sky.
3)Move back to the family home. Live with a friend. Share an apartment as Ani suggested. BTW strong LL charge MORE for extra people in an apt. More water, noise, complaints, traffic, repairs. Weaker LL accept the same price if desperate and have an apt. that is SUITABLE for shared living.
4) Move to a city that has strong Homesteading plans. Inner cities with housing stock that the city gov. would like to get back on the tax roles. Sweat equity. Downside is dealing with squatters and crack heads. Nasty people that don't talk the same language of "we are all brothers in this together". Uh, uh.
Can't think of any other alternative as to how one will be able to live in a good area, safe, clean with competive rents and compete with those that ARE working.
You see you're overlooking a couple of things here and you are being driven by media. It's very common in today's society. You have easy access to charts and diagrams. One become part of the pack and overlooks what could be the other side of the ledger. For ex:
1) Not every LL is desperate for renters. Some LL have a good deal of equity in their buildings and are not troubled by a vacancy here and a vacancy there.I'm talking real "equity" not that other "instant" kind made out of plastic as we discussed in another nonsense thread that I participated in.
2) Not every LL is willing to rent to people on public assistance. I'm not willing because once I take checks from the gub. I am liable to them to run the building or apt. the way some jerk from the agency's dept says I should.
That's no fun and I don't believe in big gov.
3) Investors operate properties to make money not loose it. So rent concessions now will go away after the first 6 month or 1 year lease is up. People will get employment and then seek out a better apt. putting competion back into the equation making it harder again for those without work or income.
I want to re-state that these are only my opinions and the only way I know how to put food on my table. If I'm dead wrong on all the points I made above I will get on the back of the line for the hot soup and re-think my position.
that my kind of thinking is not for most people. I have had my greatest successes going against the tide of public opinion and if I knew how to read a chart of statistical data I would probably get myself in a heap of trouble.
Good thing I'm lucky as I'm not very smart.
Disclaimer: Take everything I say and file it under "Madman at Work"
The New York-Wayne-White Plains metro area is a vast area that includes New York City and the suburbs of northern New Jersey and Westchester County. Rents, along with home prices, had been growing in Manhattan until the financial crisis took hold in mid-September. Since then, rents have dropped as landlords adjust to the new reality. Major layoffs at financial firms and in other sectors have forced tenants to give up expensive apartments and move in with parents or roommates. The unemployment rate climbed to 6% in November 2008 compared to 4.6% in November 2007. The apartment vacancy rate jumped to 4% in the fourth quarter last year from 3.4% in the same period in 2007. Landlords on average are giving rent concessions of 1.1 weeks.
In the article that the other post
LOL! Well so much for my theory. If rents in desirable parts of Manhattan are going down, maybe it is time to think about relocating. I never felt I could afford a decent sized (1200 plus sq. ft) apartment in Manhattan.
If you have a lease, I doubt they will go down. I have friends in the APt management business and they said yes they are offering deals right now. Vacancy is high, but also people cannot afford as much. Also all the those lovely condos being built in uptown? Half of them are being turned into apts, because no one is buying. More people are renting out rooms as well. It's all based on vacancy and right now it is high and growing, so rent will most likely come down to entice renters.
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"They" won't be able to pay the rent...you're right
