So hard to rent out in SV

Based on redfin estimate and asking rent, yield is 4795*12/23629 = 2.43%. Too lazy to estimate its cap rate and cash flow.
Why is the owner not selling it?
Appreciating at $250k per year, is worth it even if it is not rented out?

Should be a no brainer to rent out at this price. Why is the landlord struggling?

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Maybe the rent was too high initially and by the time it was reduced school already started?

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May be the asking rent is still too high for current market condition.
Assuming your household income is $200k, would you rent this house at $4795/ month or sell some of your TSLA to buy it at $2.369 mil?

House is worth more but asking for lower rent. Still can’t rent out.

$4500 per month is normal rent for Cupertino. This house also looks pretty nice. Don’t know what’s going on. Let’s not make assumptions about the rental market based on one house alone.

Maybe Cupertino is too far away for Googlers and Applers do not like renting or already renting another house.

End of year could also be slow.

Another possibility is that this is a fake rental and the landlord has no intention to get it rented. Just posting an ad to make neighbors stop questioning why he kept a nice house vacant

That’s the reason I think. No need to overthink it. Even if the first rent is reasonable it’s cutting too close to school start date.

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Similar houses for rent. Asking rent is between $4k-$5k except 1 asking for $3.5k.
Let’s not assume only family with school going kids rent in this general area.
$3.5k - 1
$4.0k - 2
$4.1k -1
$4.15k - 1
$4.4k - 2
$4.5k - 7
$4.6k -2 - Median rent
$4.65k - 2
$4.7k - 2
$4.75k - 1
$4.8k - 1
$4.89k - 1
$4.95k - 2
$5.0k - 5

My house made it into your map! :laughing:

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I thought your house was on this map below :smile:

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Well if the family is not renting based on school district they can find other places in the south bay for $500-$1K less. Why pay close to $5K a month otherwise…I wouldn’t pay that much more just to save 15 min of commute time but that’s just me.

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Yes will get there working on it… at least can make it to that upper right corner for sure… :wink:

They are not you :grin: Obviously I should know :wink:

Well, enough beating around the bushes. What’s the reason @hanera?

You think I know? Can only guess based on what I know.

Obviously, one of the reason for softer market is because schools have started. So Harriet & you are quite right but not 100% right :grin:

This year is softer than last year. My guess is there are lesser out-of-state guys or too many rentals trying to capitalized on this fact. The out-of-state guys are usually given 1-2 weeks to tour and make a decision, so they tend to pay a higher rental than those who are already here. After 1 year, they would try to negotiate lower or look for cheaper rentals. This year when I was trying to rent out, hardly any out-of-state, they are currently renting and from all over the places as depicted in the map I show (wuqijun - not pluck from the air, you implied my map covered too wide).

Well, maybe names like Cupertino are losing their luster?

Maybe renting next to work places to beat traffic and whatnot is making this home not rentable? Maybe construction of apartments is up deflating the lack of housing in some areas close to work?

I have seen several rents advertised on FB in my area. Not that cheap, but not that high, but still, you shouldn’t have a hard time renting a pearl like this one.

Now, to be fair and objective, aren’t the rent levels fairly high down there? I mean, if you took a little bit less is that gonna kill you? I prefer a fully loaded property rather the constant turnover. Remember, I am not a full time RE landlord like some of you. I don’t have unlimited time to deal with properties…

The problem is sudden decline in tenant pool compare to similar period 2016 or even just early 2017.
I dropped 10% fast and furious to secure a tenant, many came and I selected the most suitable, not the highest offer :wink: about 5% lower than the highest. Those still on the market is dropping too slowly.