Are apt/condo rental prices going up a lot as housing prices fall? (Los Angeles: real estate, apartments)

[Politico]

My husband and I are considering a move to the Los Angeles area sometime this winter. He's a television producer and I'll be going back to school. We lived in LA from 2002-2004 (Brentwood area). When we move back to LA (assuming hubby is able to get a job), we'd like to live in West LA, preferrably the WeHo area (or somewhere close to the action that's safe, etc).

My question is: As home values are continuing to drop, and people are not buying homes due to the unstable RE market and increased difficulty getting mortgage loans, are average rent rates on available units continually increasing at a higher rate than during normal years? Are there more renters in the LA area this year, due to the RE market issues? Will rent rates be rising more than usual over the next couple years, as home values continue to fall and less people qualify for home loans?

I ask because I've noticed that a decent 1br in WeHo seems to be in the $1500-2000/mo range, and I'm wondering if next year the rent in the same area will increase by more than a few bucks a month average, or if I can expect the rent rates to stay in the same range over the next few years. I know that WeHo is a popular area, and given the RE situation, I don't want to move into a place at a rate of $1700/mo, only to find that rates for the same area raise to $2000/mo+ next year.

Any takers?

[XodoX]

Originally Posted by Politico

My husband and I are considering a move to the Los Angeles area sometime this winter. He's a television producer and I'll be going back to school. We lived in LA from 2002-2004 (Brentwood area). When we move back to LA (assuming hubby is able to get a job), we'd like to live in West LA, preferrably the WeHo area (or somewhere close to the action that's safe, etc).

My question is: As home values are continuing to drop, and people are not buying homes due to the unstable RE market and increased difficulty getting mortgage loans, are average rent rates on available units continually increasing at a higher rate than during normal years? Are there more renters in the LA area this year, due to the RE market issues? Will rent rates be rising more than usual over the next couple years, as home values continue to fall and less people qualify for home loans?

I ask because I've noticed that a decent 1br in WeHo seems to be in the $1500-2000/mo range, and I'm wondering if next year the rent in the same area will increase by more than a few bucks a month average, or if I can expect the rent rates to stay in the same range over the next few years. I know that WeHo is a popular area, and given the RE situation, I don't want to move into a place at a rate of $1700/mo, only to find that rates for the same area raise to $2000/mo the following year.

Any takers?

I highly doubt the rents will not go up. There is just enough demand for apartments in L.A , and especially in West Hollywood. But the rent control is preventing high increases.

[Politico]

Originally Posted by XodoX

I highly doubt the rents will not go up. There is just enough demand for apartments in L.A , and especially in West Hollywood. But the rent control is preventing high increases.

What is the rent control? 5%?

Does that mean that if you sign a lease, your rent cannot be raised by more than the rent control percentage the following year?

We realize that rent will probably go up each year. I'm just worried that rent one year will be $1700/mo, and then at the end of that lease term, we'll get a letter saying we have to renew at $2000/mo or move out, only to find that all of the other apts in the same area have also increased by hundreds of $$ a month, as well.

Thanks

[XodoX]

Originally Posted by Politico

What is the rent control? 5%?

Does that mean that if you sign a lease, your rent cannot be raised by more than the rent control percentage the following year?

We realize that rent will probably go up each year. I'm just worried that rent one year will be $1700/mo, and then at the end of that lease term, we'll get a letter saying we have to renew at $2000/mo or move out, only to find that all of the other apts in the same area have also increased by hundreds of $$ a month, as well.

Thanks

Tenant's Guide To Rent Stabilization

Explains it pretty well. But dont worry about it...the rent in West Hollywood is in my opinion not that high considering the location and the demand.

[hsw]

Would guess rental prices in desirable parts of Westside in newer condo bldgs/houses will remain soft....

Not many renters are creditworthy enough to reliably pay steep rents, esp in a place like LA, which has a relatively weak high-end economy vs NYC/SiliconValley....IIRC, on LA's Westside, some ?20%+ of high-end rentals are derived from affluent SiliconValley guys who want to rent an LA wkend place....

But it's a two-way dynamic....would investigate to make sure landlord is unlikely to default on mortgage of place being rented....

And, when a legit landlord finds a desirable tenant, rent increases tend to be near-0% for yrs....there aren't that many desirable landlords...or tenants in any major urban region...

[BRinSM]

i don't think rents will go up too much in the next year. I moved into my current building almost 2 years ago to the day and I just saw an ad on the internet for a similar unit in my buidling for only $50 more than what our original rent was. There were many, many new buildings built in the past few years that were meant to be condo, but due to the whole real estate mess, they have gone rental upping the total inventory.

[XodoX]

Originally Posted by BRinSM

i don't think rents will go up too much in the next year. I moved into my current building almost 2 years ago to the day and I just saw an ad on the internet for a similar unit in my buidling for only $50 more than what our original rent was. There were many, many new buildings built in the past few years that were meant to be condo, but due to the whole real estate mess, they have gone rental upping the total inventory.

I agree. In Houston my rent would go up by 30 Dollars every 6 months...

[Politico]

Thanks for all the info, guys.

I've looked at apts.com, apartmentguide.com, rent.com, realtor.com and craigslist.com for rentals. Someone mentioned to me that westsiderentals.com is a good place to look, but it seems that you have to pay a membership fee to be able to look at rental info? Does anyone know anything about this, and (more importantly) is it worth it?

Are there any other *good* resources for finding rental gems in the WeHo, Brentwood, Beverly Hills, or Santa Monica areas?

We'd prefer to rent someone's condo, as opposed to renting an apartment, if it means better structural integrity, sound-proof walls/floors, etc. Any good resources for finding condo rentals, as opposed to apartment rentals?

Thanks!

[XodoX]

In my opinion craigslist.org is the best place. Several hundred entries every day...can't go wrong with that and that''s how I find my apartments too.

[Green Irish Eyes]

Originally Posted by Politico

Thanks for all the info, guys.

I've looked at apts.com, apartmentguide.com, rent.com, realtor.com and craigslist.com for rentals. Someone mentioned to me that westsiderentals.com is a good place to look, but it seems that you have to pay a membership fee to be able to look at rental info? Does anyone know anything about this, and (more importantly) is it worth it?

Westside Rentals will cost you $60 for two months' access. They have a pretty good selection of apartments but many of them also show up on Craigslist. "Conventional wisdom" is that while Craigslist listings are sometimes fake, W/R listings tend to be legit.

Of course, it's definitely possible to find an apartment without paying a fee, especially if you have the opportunity to just drive around the neighborhoods where you'd like to live, looking for "For Rent" signs.