Did any landlord or tenant on the forum also notice the rent is dropping?
There are stats on the asking prices on trulia. For example:
https://www.trulia.com/real_estate/Menlo_Park-California/
Many cities had some drop in rent and an increase in rentals. But not necessarily a large drop.
How much of the rent drop is seasonal? If sale price has seasonal pattern shouldn’ the asking rent also have the same seasonal pattern?
Yes, I have a lower Nob Hill 2 bd apartment that I finally rented out this week. Response was ok, but certainly not like in the past or say in late summer right before the school year begins. It is November, so somewhat off-season or in between seasons. I did manage to get a rent bump of +40% so not really complaining…
I have a friend at work who told me they dropped the rent on his new lease. He did not even ask for a reduction. This was in Santa Clara.
Ok, do we need to report them to the authorities???
Why would someone do that? If I am that landlord, don’t I want to ask the tenant that would they like to renew the lease with current rate (since you are a great tenant, I am happy to continue with current rent). If you are worried that they might not renew, tell them to talk to you and you are willing to work. But dropping without even asking, don’t know what to say about it.
In the comment section of Socketsite, people did do the “apple to apple” comparison (i.e. same property, year over year comparison to remove seasonality effect), and showed examples of rent drop in San Francisco compared to 1-2 years ago. Roughly 5-10% decline.
My vacancy was obviously in SF. One thing I def noticed was a fairly healthy number of competitors spread throughout the city and since it is November I couldn’t just ask for the sky. Now, granted, a lot of it was crap too - dingy dark inlaws or people wanting to rent out individual bedrooms in a SFH. WTF! I didn’t want to wait anymore (only a few weeks of turnover) so just got it done.
I will say though, I got the cream of the cream applicants at least looking my way. These are the ones who work for the name brand companies you and I talk about all the time from SV. They commute down in shuttles… I probably received the most over qualified applicants ever in my history of doing this. Couple made over $325K easily. They didn’t take it (I didn’t expect them to) but probably a blessing in disguise since people like this may just pick up and leave after a year. I would rather take a tad less if it means (no guarantees of course) a longer tenancy (less turnover expense and downtime).
So many landlords here, can easily do a simple survey to verify the article. Small sample but …
2011 - Base rent
2013 - Up 15%
2014 - Up 23% (change tenant)
2016 - Up 4% (change tenant)
We negotiated our rent down 4.5% in August.
@MM_HH I like your new avatar. Folks, please customize your avatar. Too many "M"s and too many "S"s.
Everything is on hold till the election. .People are even holding off on planning vacations…Uncertainty is bad for the economy. …Rents still going up in Sac, Stockton and South lake Tahoe…BA rents are tied to the unemployment rate…still going down…bullish for rent increases
I know - this discussion from last yar. Update is here.
https://www.bizjournals.com/sanfrancisco/news/2017/11/21/bay-area-rents-jump-most-in-petaluma-walnut-creek.html It is interactive chart - look at different variations
Did Berkeley and Oakand rent really fall 15% and 10%?
“Berkeley saw monthly rents drop 15.9 percent, while Oakland saw a 10.9 percent decrease to $2,480 and $1,960, respectively.”
That may be asking rents but average rents paid are stable
My Oakland rents have steadily gone up
We don’t raise existing tenants more than 3% so our units are under market and am still getting net 7% cash flow
Understand that you have rent control and market rent fluctuations don’t affect you. But a 15.9% market rent drop in Berkeley is alarming, not sure Zumper data is credible
That is the one good thing about rent control… stable cash flow… I doubt the stats… probably so few units on the market that statistics become meaningless
What? You mean people actually can make money owning multi unit properties in rent controlled cities like the Fab 7x7 and Oakland??? Shocking!!!