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This question pertains mainly to Maryland (Mont. Co.). I have an opportunity to sign a 2-yr lease and was wondering if this is a good deal or not. By signing in for 2-yrs, I can "lock" it a rate increase of 4.4% for year 2. Apparently, this is the rate at which this year's leases are increasing at the apartment complex (which is absurd in and of itself given the economy and county suggested increase of 3%). What do you think? We plan on staying at this community for up to the next 5 years.
If your county suggested 3% and there offering you 4.4%,
you don't even need to do the math, there not giving you an
incentive. Ask the prospective LL what the rental increase
would be if you signed a 1yr lease and then renewed.
I believe counties put a cap on how much they can increase
per year.
Last edited by virgode; 07-15-2009 at 06:47 PM..
Reason: additional info
I would never lock in an increase. A year is a long time and you never know what the market will bring. The market in your area could stay steady and you could not get an increase at the end of your lease or it could do poor and maybe they'll even consider a slight decrease. You just never know. Why agree right off the rip to pay more?
I agree with Babytarheelz. The economy is showing no signs of recovery and is actually getting worse each day. With less people be able to afford rentals the owners will have little choice but to lower the price. (I have seen this where I am located). I suggest trying to negotiate the rate or asking for a rent freeze for two years.
I agree with Babytarheelz. The economy is showing no signs of recovery and is actually getting worse each day. With less people be able to afford rentals the owners will have little choice but to lower the price. (I have seen this where I am located). I suggest trying to negotiate the rate or asking for a rent freeze for two years.
Rent freeze for two years is excellent idea. Actually, 1year goes by quickly, moving is a pain you know where.
Rent freeze for two years is excellent idea. Actually, 1year goes by quickly, moving is a pain you know where.
I don't think the OP's rent will remain the same for the 2nd year... I believe OP states that the agreement is an increase of 4.4% for the 2nd year... That's insane to agree to it and not have an option at year 2 to either move to sign another lease at a potentially lower increase or same rate as the 1st year.
I agree with most comments here. Just sign a 1 year lease and see what happens in a year. The only way a 2 year lease makes sense is if you lock in the same rate for the entire 2 years. Agreeing to a 4.4% increase before you even move in is not a good deal. Besides, if you end up next to the neighbors from hell or just hate the apartment, you will only be stuck in it for 1 year instead of 2.
I agree with Babytarheelz. The economy is showing no signs of recovery and is actually getting worse each day. With less people be able to afford rentals the owners will have little choice but to lower the price. (I have seen this where I am located). I suggest trying to negotiate the rate or asking for a rent freeze for two years.
I'm seeing exactly the opposite. Our housing market is pretty sad, but our rental market is booming. We are raising our asking rate on all units as they come up vacant, because of all the demand. Yet, I see stories running in the local paper saying how bad the apartment market is and how many vacancies there are. Ours are all houses and duplexes and our phones are ringing off the hook.
What I'm seeing is that more people (with otherwise good credit) are unable to afford their huge house payment, so are downsizing into rental houses at a record pace.
I'm seeing exactly the opposite. Our housing market is pretty sad, but our rental market is booming. We are raising our asking rate on all units as they come up vacant, because of all the demand. Yet, I see stories running in the local paper saying how bad the apartment market is and how many vacancies there are. Ours are all houses and duplexes and our phones are ringing off the hook.
What I'm seeing is that more people (with otherwise good credit) are unable to afford their huge house payment, so are downsizing into rental houses at a record pace.
We're actually seeing the exact same thing here in our apartment market. Occupancy is up & demand is high. With the credit crunch, new development (which was going crazy here) has halted, increasing the demand on the already constructed units. The communities here are getting substantial increases for their renewals. I know it's not the same everywhere though, so it would be in the OP's best interested to wait it out in their market.
Besides, if you end up next to the neighbors from hell or just hate the apartment, you will only be stuck in it for 1 year instead of 2.
This is just what I was thinking! From personal experience-- a place can look absolutely great to you now, but maybe in 6 months you will hate it! No one selling you an apartment is necessarily going to be honest with you if, for instance, maintenance is bad, the office staff is unhelpful, or you have a bunch of jerks for neighbors. And those are things that can be pretty hard to distinguish viewing a unit. Also, rentals, especially complexes, can sometimes go through staff quickly. The place could be managed completely differently a year from now.
If it were someplace you'd lived before, and really like, then I would definitely consider a two year lease, but agreeing to live in a rental you've never lived in before for two years-- this is really risky.
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