Short-term rental in OC: Get 12-month lease and break it? (San Jose: short sale, apartments)

[jason_k_ca]

My family (me, my wife, and my 8-month-old daughter) is moving from San Jose to OC on Nov 19th. We will be looking for houses over the next few months, we already have an offer in on a short sale SFR in RSM (tentative closing Feb 28 if approved) and are planning to be in a SFR within 3-4 months of moving.

We are looking for a short-term unfurnished 3BR apt, since we will be moving our furniture into the apt. We've found several nice communities (our current top pick is Rancho Santa Fe in Tustin) but no one seems to offer lease terms below 9-10 months, there are a few that offer 6 month terms but charge a premium.

I did the math and it turns out it will be cheaper to just sign a longer term lease and break it when we close on the SFR. It looks like most communities charge $3000-3500 to break a lease and charge at least a $100 premium for the shorter term. So if a 6 month lease is $2600/mo vs. $2500/mo for a 12 month lease, if we move within 4 months and break the lease on 12 month we would pay ($2500 * 4) + $3500 = $13500, versus $2600 * 6 = $15600 for finishing out the term of a 6 month.

Has anyone had experience with this type of situation (experience with the Irvine Company would be most helpful since they seem to have the best rental options in the area)? Would it be better to explain my situation when signing the lease or just keep quiet until I need to break? Any other advice would be helpful.

Thanks,
Jason

[VeronikaW]

I live in a nice 3 bedroom apartment in Aliso Viejo and I think they do offer 3 month leases, though you're right, they charge a higher price for a shorter lease.

I would make sure that your lease explicitly states the cost for breaking the lease, but I don't think I'd mention in advanced that that is your plan. I had to break a lease (my husband got a job out of state), and the company was super nasty about it, and even though I did a walk through and they promised me my security deposit back (which I should have gotten, because I had a professional cleaning company come in and clean), after we left, I received a bill from them asking for over $1,000 more than my deposit. It was a pain to fight them from out of state.

You might look on Craigslist for short term rentals.

Good luck!

V. =)

[jason_k_ca]

Veronika,

Do you live at Barcelona or St. Moritz, and if so is highway noise from the 73 an issue?

[Havnfun]

Have you looked at Archstone Apartments? I have seen the one in Mission Viejo and they are quite nice. They also have apartments in RSM (Las Flores)and Aliso Viejo. I believe that they only charge one months rent to break the lease. Two bedroom apartments in Mission Viejo complex are $1700 - $2400 I think.

[VeronikaW]

Originally Posted by jason_k_ca

Veronika,

Do you live at Barcelona or St. Moritz, and if so is highway noise from the 73 an issue?

We live in Barcelona. We're actually pretty close to the toll road, but I never hear it at all. I hear that if you live in Buildings 1-16 it's more of an issue. We live in building 55 and my brother lives in building 59, and neither of us hear it.

V. =)

[Ol' Wanderer]

Originally Posted by jason_k_ca

Has anyone had experience with this type of situation (experience with the Irvine Company would be most helpful since they seem to have the best rental options in the area)? Would it be better to explain my situation when signing the lease or just keep quiet until I need to break? Any other advice would be helpful.

My daughter has always lived in Irvine Apartment Homes (this current apartment is either the fourth or fifth with Irvine Company.)

The first time she broke the lease was five or six years ago, she had to pay 1.5 month rent as penalty.

The second time, she moved to another part of OC and a complex that also belongs to IC, no fine involved, the lease was transferred over to the new place.

In the last few months, she has been contemplating a move that does not involve another IC property, and the management assured her that with the supply-demand ratio favouring the company, they can re-rent fast as lightning. They told her the fee (same as the rent) would be prorated according to the length the place stands empty.

I cannot say whether you should disclose your intention at contract signing time, but a well-posed question would be the least I would do if I were in your shoes.

[Enkiktd]

I've lived at Barcelona and St. Moritz for a total of 2 1/2 years. The freeway noise has never been a problem at either.

The lease break fee is equal to one month's rent, but at least there's a lease break fee. City Lights won't let you break your lease at all.

I'm in a similar situation at the moment. I'm considering moving back to Barcelona for a short period of time and breaking lease when I need to. If I did rent again with intent to break in 3-4 months, my preference would be to rent the smallest, cheapest place that I could manage in for 3-4 months with just my bare necessities, and to rent a storage locker for a few months and put the rest of my large furniture there. It would probably end up being a little cheaper than paying rent on the largest size apartment (which we'd get if we were staying), and also the lease break fee would be cheaper. It will also be cheaper to move because if stuff is placed neat and tidy in storage, movers can just go in and grab everything and put it in the truck quickly and they don't have to mess around with Barcelona's stairways and heavy furniture.

Also of note is that the townhome style units at Barcelona and St. Moritz do not always accommodate furniture well. If you have a large sofa or piece of furniture that cannot be broken down, sometimes it cannot actually get into the unit because the first stairwell has a low ceiling and a sharp turn. We actually had to get rid of our nice leather sofa because of this when we first moved to Aliso. When we moved out, we bought another large sofa for the house we're in and if we end up renting there again, it'll get stuck in the garage until we move out because there is no way it's making it up the stairs.

I've used ocmover.com multiple times for my moves and they've always met or exceeded my expectations and their prices are extremely reasonable. Maybe if you like the downsize + storage idea, maybe they can give a discount for using them for moving (from your apartment to your newly purchased home) AND storage for the months before then? I've never asked but now that I think of it, it would be good to ask, and I just might! lol

[Enkiktd]

Originally Posted by Ol' Wanderer

I cannot say whether you should disclose your intention at contract signing time, but a well-posed question would be the least I would do if I were in your shoes.

No need to disclose ahead of time and it's not really any of their business. Just make sure you read the lease contract and make sure there is a clause that says you're able to break the lease. Take note of how many days ahead of time you must give notice and what the penalties for breaking the lease are.

Also ask to see their move out fees. They will charge you for steam cleaning the carpets, paint to the unit, and general cleaning fees whether you are there 2 minutes or 2 years. Make sure that you factor this into "lost" money with the lease break fee.

[bhcompy]

Originally Posted by Enkiktd

Also ask to see their move out fees. They will charge you for steam cleaning the carpets, paint to the unit, and general cleaning fees whether you are there 2 minutes or 2 years. Make sure that you factor this into "lost" money with the lease break fee.

Every lease I've had stipulates that at the start as part of money I can pay separately or have taken out of my security deposit.

[Enkiktd]

Originally Posted by bhcompy

Every lease I've had stipulates that at the start as part of money I can pay separately or have taken out of my security deposit.

It's true, but it's still money that gets "lost" either way. If you steam clean your own carpets they usually will not accept that as being sufficiently done. You will have to provide receipts from a steam cleaning company that you had the carpets professionally steam cleaned.

My advice is just to factor in those costs too, because they will take them.