Did you have a bad rent increase lately? (Alexandria, Reston: sale, subletting)

[tsuric]

A few questions....I am trying to gather information so I can decide what to do a year from now....

Personally my rent increase was not bad at all this year but I know of cases where people got hit hard...

When did you first start renting your place?

What was your rent before? What is it now?

What kind of place do you have? (Studio, 1BR, 2BR, 3BR....Private or managed)

What city do you live in?

Thank you for your help. Additionally, feel free to answer fewer questions if any makes you uncomfortable.

[CaliTerp07]

We had a 2br apartment in Alexandria city. Started renting June 2008 at $1580/month. That was with all kinds of move in specials, because they had just renovated the building and were trying to fill it. The next year around, they didn't offer as many specials, but our rent only went up to $1640 I think. It wasn't bad. Of course, they gouged us because we had gotten a dog, so we had to add $40/month in "pet rent", plus a $400 non refundable deposit. Bleh.

We ended up subletting and moving out this past January, so I'm not sure what would have happened this summer. I imagine it would have stayed about the same. The complex was never more than 80% full, so they couldn't raise the rent too much. (Although they are building a giant clubhouse facility, so they may charge more once that's done).

[AJoy77]

I lived in a small 1bd in Alexandria a few years ago and the rent started at $1050. I was told that it wouldn't increase, but then it went up to $1145 with less than 2 weeks notice. $100 seems like a huge increase to me!

[HokieFan]

When did you first start renting your place? January 2009

What was your rent before? What is it now? $1400.00 - No increase

What kind of place do you have? (Studio, 1BR, 2BR, 3BR....Private or managed) 2 BR, 2 BA condo privately owned

What city do you live in? Alexandria but technically Fairfax County

[tsuric]

I'll answer my own questions, maybe this will help other people and even the playing field a bit...

When did you first start renting your place? September 2009

What was your rent before? What is it now? $1067 --> $1121

What kind of place do you have? (Studio, 1BR, 2BR, 3BR....Private or managed) 1BR, Managed

What city do you live in? West side of Fairfax

[webninjataylor]

Don't rent from Camden!!!!!!!! 18.35% rent increase this year!!!!!!!

[sportsterjohn]

Townhouse Herndon managed by Equity
Rent in 2010 1650.
Increase at renewal in 2011 1865
not sure what they would have done with the rate this year as I already decided not to renew.

[Hesky]

This was the progression of my rent payments during the five years I rented in the area:

2007: 1 BR apartment in Merrifield - $1275/month
2008-2009: I rented a room in a townhouse in Merrifield - $750/month
2010: 1 BR apartment in Reston - $1300/month
2011: 1 BR apartment in Tysons Corner - $1450/month

When I was renting in Reston, they wanted to increase my rent from $1300 to $1500, which is why I moved out. I work in Tysons anyway, so paying more for a longer commute didn't make sense.

Now I own a house in Sterling, and I pay around $1650/month. If I had wanted to extend my lease another year, the rent would have gone up to $1650.

[NC211]

Merrifield is going to be $3 per square foot rents in about 36 months, guaranteed. It's becoming the submarket for the "renter by choice" demographic.

The boogie man in the room though, is interest rates, making home purchase a tougher option to say no to, when you have the capacity to do so in general, like you point out Hesky. But, in Merrifield and around Tysons, the band is just getting warmed up, for several reasons!

2008: Market crash. Office tenants in Tysons take advantage of concessions and lower rents downtown to relocate for the perceived quality increase (Class A suburan to near Trophy Urban with a DC address). Typical leases signed for 5 years, with extension options upon expiration. However, since 08', the CBD of DC became one of the only becons of desire in the international CRE investment world, specifically in the office segment. Owners were selling at huge profits, which is what is called a cap-rate compression. Basically, REIT's and pension funds went on a buying spree down there, and pushed their returns further down the curve towards the sale aspect of the investment. Earning 4% on their investment during the hold period, puts more pressure on raising the rents to increase the property's value when it comes time to sell. Meanwhile, back in Tysons, owners are taking advantage of the vacant space to make upgrades, and not to mention the new metro line being installed. So, Mr. Former Tysons Corner tenant, who signed a lease down on K for $36 bucks a foot, now has to give written notice of intent to renew next year. However, his building sold to Pension Fund X in 2010 for a 4% cap rate. Pension Fund man has to justify that cap rate, by raising rents. So, Mr. Renter, as he spends yet another year jammed up on the Key bridge to get to work, is facing a new rent of $45 per square foot. Meanwhile, his former digs have been renovated, Tysons is easier for him to get to, and costs about $34 a foot in rent.

Merrifield is sitting there, with open arms, and all eyes are shifting squarely back to not just Tysons, but down the toll road out to Dulles. Need proof? The downtown market just recorded it's worst net absorption of occupied office space since some idiot flew a plane into the Pentagon, and started mailing poison in the mail over 10 years ago.

[cajunbanker]

Originally Posted by webninjataylor

Don't rent from Camden!!!!!!!! 18.35% rent increase this year!!!!!!!

I second this.....they absolutely stuck it to us after our initial 9 month lease was up. They were going to increase the price of our 3 bedroom by almost $500. I tried to negotiate, but they said they (the office) didn't set the prices.

Would have probably stayed another 12-18 months there, but instead we had to pick up and move again. PITA!!!!