The Rent Is Less Damn High

Even though it is coming down some, I am still amazed when I talk to some of my younger coworkers who pay so much for a small 1 bedroom. I get it you want to be close to work but come on that is a huge portion of your take home pay. I say, suffer a little, by renting outside SF and start saving big time. Young people just don’t care…:confused:

They care more to get laid. :smile: And living in the boonies will destroy their social lives…

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Having listed my own home for rent in SF, i understand the rental market is not that hot right now. It took me over a month and a half to have it rented out in a prime location. The market is glutted with so many rental properties that tenants can negotiate. I say it’s the renters market right now. If you’re paying too much rent, you can demand the landlord to reduce the rent or opt to rent lower.

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Interesting. Without providing specifics, can you tell us more? Neighborhood? Did you advertise on Craigslist or other sites? Did a lot of people inquire and show up to open houses? How was the quality of the prospective tenants? Now, objectively did you price the home pretty much at market or low/high? Obviously, that might have had something to do with the time it took to rent out. Also ,can I assume you asked for first/last/deposit or some combination of that?

The home in the Mission District. I advertised close to 6 different places including Craigslist. The home was remodeled (new kitchen, brand new bath, new patio) a year ago. It was probably one of the better looking single family home on our block. I thought the market was much higher when i priced it, but came to a slow realization that whatever generates enough interest is the market price. SF county lets you charge as much as times rent, as deposit but at the end of it, I was so fed up that i just ended up asking one month’s rent as deposit. People would come in, and say things such as, “oh i am looking at 5 other places” and never get back to you. The problem is there are so many rentals sitting on the market. Unfortunately when we listed it in February, the year was just starting off and we thought it might be a slow time of the year. I am happy the rent at least covers the PITI.

@3harkwo What’s the difference, percent-wise, between the rent you are getting, and the Zillow estimate?

5% lower than Zestimate

Thanks 3harkwo for the details. And in the Mission (Ground Zero) no less.

Zestimate is pretty accurate then in this case…

Zillow is no longer accurate for my neighborhood, both price and rent. For rent, is about 6-8% too high.

I invested in a 250 unit complex in Phoenix. .18 buildings…some asshooe burned the thing to the ground…
http://www.12news.com/news/local/valley/residents-evacuated-as-5-alarm-fire-burns-at-gilbert-construction-site/151516111

What? Did insurance pay for rebuild?

We have insurance including lost rents…but the IRR will go down…But even this pyromanic did less damage than all the nimby pols in the BA…

6-8% is pretty good already. Every house is a bit different, and timing/seasonality also plays a part.

Looks like I can shave off 5% from the Zillow number as my starting rent, and increase it a bit every year.

Sorry to hear that, it must be something!

Manch, plus or minus 5% is probably a good intelligent estimate.

That headline is misleading. It implies rents decreased. The truth is the rate of increase slowed. You see that a lot in headlines. Maybe journalism majors are that bad at math. Maybe they purposely mislead to confuse people. Maybe it’s just a ploy to get more clicks. Most people will think the headline is true even if the data in the article shows something different.

I am renting in Menlo Park and here it has definitely decreased.

I live on a street with 7 homes that are pretty much identical. Going rate was an insane $7000/m in 2014. One recently went vacant and despite some decent advertising, it sat for 6months. They finally lowered the rent from the 2014 tenant’s (family no pets) rate of $7000/m to $6000/m and got a new tenant (family with a dog).

I have noticed a lot more sfh for rent in Palo Alto in the $6k-$7k range this summer. Not sure if the decrease is because Palo Alto rentals are popular investments (particular with foreign investors) and the market is becoming flooded or if it is because of the slow down in tech. Probably both but the market has changed a lot from a year or two ago.

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The thing is, we have been so conditioned and “used to” high rents that when they finally flatten out some or even decrease some, we are so concerned that the sky is falling. Come on, $6k/mo for renting a home is actually still a lot when you really think about it. That’s $72K a year, for rent!!! Unless you bought at the high end, your mortgage is probably substantially less so to be cash positive on a SFH rental is not exactly the norm (years ago).

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