Southern California apartment rents are expected to continue rising through 2018 (Huntington Beach: renter, to buy)

[NOIGUY]

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Yeah because an independent owner can't use the same rent bumps or income criteria that Yardi magically cooks up. This is so asinine.

[NOIGUY]

Originally Posted by jm1982

You're saying rent maximizing software is the reason for higher rents versus consumer demand for housing?
The markets of Los Angeles vs Palm Springs,Chico,Joshua Tree and Yucaipa are completely different.

These property owners are getting the rents they get because of demand for housing vs a limited supply.
A landlord doesn't need rent maximizing software to know what the going rate is for buildings in their area.
They can jump on craigslist or apartments.com or other sites and look for free. Or call "For Rent" signs.

Pretty much every landlord wants to maximize rents even if they don't have software.

This.

[NewbieHere]

Of course it is. More people demand, price will rise.

[West of Encino]

Originally Posted by NewbieHere

Of course it is. More people demand, price will rise.

I don't see how the average person wouldn't be discouraged by the high cost of living.

[jm1982]

Originally Posted by West of Encino

I don't see how the average person wouldn't be discouraged by the high cost of living.

I'm sure many are you have to be either a relatively high income earner or a crazy dreamer to move to L.A.
I know there have been several posters on here that 'plan' to move to L.A and live in their car until they find a job.
The trend does seem to be that lower and middle income people are moving out and being replaced by higher income earners or wealthy.

L.A might look cheap or a much better value if someone is moving from SF or Manhattan (NYC)

I saw a Hollywood Reporter article recently about how for 4 million , one can only get a 1200sq ft apartment in Manhattan but you can get a huge house of over 5,000sq ft on a big lot in L.A , lol.

N.Y. vs. L.A. Home Prices: What $4 Million Gets You in Each City - Hollywood Reporter

[theoaks]

Originally Posted by jm1982

You're saying rent maximizing software is the reason for higher rents versus consumer demand for housing?
The markets of Los Angeles vs Palm Springs,Chico,Joshua Tree and Yucaipa are completely different.

These property owners are getting the rents they get because of demand for housing vs a limited supply.
A landlord doesn't need rent maximizing software to know what the going rate is for buildings in their area.
They can jump on craigslist or apartments.com or other sites and look for free. Or call "For Rent" signs.

Pretty much every landlord wants to maximize rents even if they don't have software.

Demand for rent is just as high in palm springs, chico, yucaipa, etc. since people are moving out away from the property managers who control the coast. Their rents have gone up slowly but not as fast as the double digit annual increases on the coast. The property managers know they can get high rents from employees making well over $75 grand at Apple, Amgen, Sony, Abbott, and others so they kick the rest of us out of their territory into the inland empire, central valley, and beyond.

[theoaks]

Originally Posted by NOIGUY

This.

They do, but annual increases in smaller towns are only at the market rate. Rent Maximizing Software - annual rent increases are rents are several times the market rate. That's why these management companies have invested in the programs. And it's $3000 just to buy the software, with a license fee of $100 per unit, annually.

I talked with a senior leasing consultant in Vegas and he said that properties in Vegas don't usually use the programs. That's probably why Vegas is the most affordable large metro area in the Southwest. Reno, however, has been taken over by southern californian property managers and is now more expensive than Vegas - the differential between the two markets for a one bedroom is $100 to $200 Call Virginia Kennedy or Shawna Gregory at their senior positions at CONAM management to find out more about this. You won't be able to get through to their offices, since they don't take calls from their renters who complain about huge annual increases. Look at property management companies on YELP and most get just one star. Their other tactic they use to is to take application fees for their apartments and then not return the money for the cost of the application, which is required under California State Law. They also will charge $50 or more for an application, when California State Law says it can only be $25, maximum.The other thing they do is to ask for bank statements and pay stubs, in order to determine that a person is making three times the monthly rent. That is also illegal, since California state law says that it is illegal for a landlord to ask for proof of your source of income !

[NOIGUY]

Originally Posted by theoaks

Demand for rent is just as high in palm springs, chico, yucaipa, etc. since people are moving out away from the property managers who control the coast. Their rents have gone up slowly but not as fast as the double digit annual increases on the coast. The property managers know they can get high rents from employees making well over $75 grand at Apple, Amgen, Sony, Abbott, and others so they kick the rest of us out of their territory into the inland empire, central valley, and beyond.

Seriously, you're delusional.

[jm1982]

No way demand for rent is just as high in those areas.
Yucaipa? Really?

Vacancy rates are much higher there than L.A

Rent and property prices will always be higher in an area more people find desirable.
Property managers or landlords will charge what the market will pay for that area ,whether it's in L.A, Palm Springs, Yucaipa or any of the other areas.
Yes of course many people are leaving L.A because they can no longer afford it so they move to the areas you mention or often out of state ..Texas is a big destination these days because their economy is strong and housing is generally a lot less than CA.
But what is the alternative? Should property owners be charging less than what they can get? Should they subsidize people that can't afford the market rent?

[Des-Lab]

Originally Posted by jm1982

Should property owners be charging less than what they can get? Should they subsidize people that can't afford the market rent?

Well duh. Of course they should.

That question was answered a few pagesd back.

Because. You know. It's a nice thing to do. And they don't need that extra money anyway.