Lease renewal rates (Oxnard: prices, moving to, gas)

[Ms.MoneyPenny]

Originally Posted by ryanms3030

In my case they rented it for even more then they wanted from me. I was paying $1800, they wanted to raise it to $2200 and when I moved they put it on the market for $2300. They have had no problem renting out all of the other units where they drove tenants out of. Every unit was rented out almost immediately so it's not like they are sitting on unrented units for months or even weeks

How exactly does one "drive" the tenants out by raising rent to below market rate?

[ryanms3030]

Originally Posted by Ms.MoneyPenny

How exactly does one "drive" the tenants out by raising rent to below market rate?

by raising rent 20% after a year while doing no improvements, firing the live in manager and not replacing them, and being an all around unresponsive and bad land lord.

[Ms.MoneyPenny]

Originally Posted by ryanms3030

by raising rent 20% after a year while doing no improvements, firing the live in manager and not replacing them, and being an all around unresponsive and bad land lord.

If people are still swarming to get in it sounds like a great business plan to me.
Lower the expenses and increase revenue.


Would just have to do an analysis to see if the increase in gross potential outweighs turnover expenses.

[ryanms3030]

Originally Posted by Ms.MoneyPenny

If people are still swarming to get in it sounds like a great business plan to me.
Lower the expenses and increase revenue.


Would just have to do an analysis to see if the increase in gross potential outweighs turnover expenses.

I agree. There are other people here that are apparently property owners who are saying you should never do that to good tenants. But if it was me I would definitely do it. You are in business to make money not to be a charity. Yes if you are going to have a unit sitting empty for 2-3 months it might not make sense but if the market is hot then take advantage.

[kasuga888]

Unfortunately all of the major property leasing companies use "intelligence" software to adjust the rent which always seem to only go up. Unfortunately, there is a high demand for housing and people also willing to roomate up even into a singele room just to live the LA life. I think property owners are determine to get as much money from ones income as they possiblely can. If you don't want huge disturbing rental increases, rent from small time apt owner who value decent tenants vs high turnovers. ... or life in a pre-gentrify area.

I personally don't know how so many people can afford the 1bd for 2k + that are being built.

[jm1982]

I know someone mentioned before about this software..but even without software most landlords will keep an eye on market rents in their area.

As for the $2,000+ 1bedroom places it's either high income earners renting those , or people getting help from their family.
Oftentimes that family isn't in L.A, but elsewhere in the country or around the world.

A surprising amount of young people like college age live in those new trendy buildings. Certain buildings attract a certain 'type'.

[JohnG72]

Originally Posted by kasuga888

I personally don't know how so many people can afford the 1bd for 2k + that are being built.

I never understood that either until I lived in DTLA. I was paying $1550-1725/mo and knew what I made and was wondering how student and other with jobs paying way less than I made were affording rent. I found out one time after annual inspection. There were a few units that had put up faux walls and were subleasing part of the unit. A few weeks after the inspection the building was quieter, less crowded, and magically there was street parking available.

There were also lots of couples. So two incomes. And finally, aside of the fact that there's lots of high 5 figure and low 6 figure single people in downtown, it's not unbelievable that some would readily be able to afford $2k a month, esp considering that commutes are entirely eliminated. I walked to work and only used my car on weekends. And of course there are people who rent the max they can afford. Personally I never want to exceed paying 20% of my gross income, and generally have kept my rent at 15% of gross and around 25-30% of take home. But I think others dont see it that way

[JohnG72]

As an aside, a co worker found out what I pay in rent. She said "oh, that's a mortgage payment!". My response of "where exactly is that a mortgage payment" was met with stone silence.

Some people are really that ignorant and behind the times.

[jm1982]

Originally Posted by JohnG72

As an aside, a co worker found out what I pay in rent. She said "oh, that's a mortgage payment!". My response of "where exactly is that a mortgage payment" was met with stone silence.

Some people are really that ignorant and behind the times.

Where and when lol

Also there are a bunch of additional costs with being a home owner , taxes , insurance , maintainance and repairs ,

At today's prices it's cheaper to rent in most areas , especially nicer areas .

[Big-Bucks]

You gotta know what's happening in LA and your are with regard to rent rates before you can judge landlords.

In some areas rents just go up a lot. Santa Monica went up 17% in 2015. Bel Air down 11.5%.

I'm guessing that really expensive areas might be skewed by one or two ridiculously expensive homes that might or might not happen to get rented for the year.

For 2015, Los Angeles Rents Increased More Than 11 Percent | L.A. Weekly