Question:Are rentals going up?
Just wanted to do a quick check here. I live in Cupertino and my owner just slapped us with a 10% increase in rent. Do you all see the rent trends going up?
Our lease is not up for renewal until end of June – are rentals expected to be lower around that time? Any thoughts?
Response1:
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Yes my apt folks have also increased the rent in Sunnyvale. Amount varies from place to place.
Response2:
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Looks like it is the trend. We had almost 20% increase.
http://news.yahoo.com/s/yblog_localsfbg/20110428/ts_yblog_localsfbg/affordable-rentals-becoming-scarce-in-the-bay-area
Response3:
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It depends on when your lease is up for renewal. Summer is usually a high season as folks move. The rents would be higher then. If your renewal is during the low period (winter till feb) then your rents may be remain steady if not lower.
Also home buying activity affects the rents.
One way to break the cycle and avoid to renew the lease during summer months is to go for shorter lease once or go for longer than 12 months (14-15 months) at least once so that the next renewal is up during the low season.
Response4:
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Which seasons do you think are low seasons ?
I am kind of new to bay area so need to get proper info before getting into a lease ...
Response5:
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The low season is usually Nov till Feb (may start early – Oct and end later – March/April).
Summer (May through September) is high season.
There are other factors such as number of apartments that are coming up for renewal in the same month. If the number is high, the leasing company may want to avoid all the existing renters from giving notice and vacating the apartments in the same month and been left with too many vacant apartments on hand. So they may bring out specials for odd leases like 11 months or 13 months or lower the rate for existing renters.
Response6:
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The rental rates are going very high specially in Cupertino area. I got notice from Apt community 2 month in advance to increase rent by 23% on a yearly lease and 45% month to month. . This leaves no other option but to move out.
Cupertino all residents should fight to get this area under “Rent control” as like San Jose where owners cannot increase more than 8% annually.
Response7:
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I am certainly interested in knowing how ‘Rent control’ is enforced.
I stay in Country brook in San Jose. I got the notice of 50% increase in case of MOM or 20% if I go for 12 month lease.
Response8:
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I will also pay 15% more when I renew. Free Market Capitalism (if there is anything like that!) sounded like a great thing to me 10 years ago. Not anymore .
Response9:
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During dot com boom in 1999/2000 the rentals were quite high. After the dot com bubble burst, the rents dropped by about 50%. I remember that time I had month-to-month lease and few times my rent got lowered. Around 2005-2007 even though the economy was doing good, people were buying new homes and because of that rental market was down. After that in 2008-2010 the economy was bad and real estate market was badly hit. So rental market was substantially down for almost a decade. Now as the economy is going upwards and as home owners are converting to renters after the sort sale spree, now the rental market seems to be hot. I think this may be the reason for substantial increase in the rents and they seem to be adjusting for the market trends.
Response10:
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Yes, I really agree. I too stay in Cupertino and we too got the notice recently and they have increased by 15%. But everywhere in cupertino the rates have gone up too high. Like Arioso apartments have started charging $2000/- for one bed room and 2 bedroom starts from $2500/-
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