Rents going down? By how much?
We’ve been renting out a one-bedroom garden apartment in Prospect Heights for $1850 for the past year. We’re asking our tenant to sign a new lease, but she says that the market is down and wants a reduction in rent. By how much would you say the market has decreased in the last 12 months?…
We’ve been renting out a one-bedroom garden apartment in Prospect Heights for $1850 for the past year. We’re asking our tenant to sign a new lease, but she says that the market is down and wants a reduction in rent.
By how much would you say the market has decreased in the last 12 months? In other words, what’s a fair rent this year for something that went for $1850 last summer?
Thank you!
Craigslist is fine to check going rents. Just weed out the brokers posting multiple times.
I don’t know Prospect Heights rents but keep in mind you can rent a floor-through 1.5 bedroom in Carroll Gardens and similar places for about $2000. A similarly configured apt with massive detail and nice finishes will rent for $1400 in Stuyvesant Heights.
How big is your place? How nice is it? I’m not sure I’d say to go down more than $50 or $100. It depends on your tenants though, and what their income is like, what may have happened with the jobs or pay cuts. If they’ve gotten a paycut, and you want to keep them, maybe it’s worth it to work with them…
You can try
http://www.rentometer.com
for comps, though I’m not sure if it reflects the current slight downswing in the rental market.
id say keep it the same if you like them. 1850 for a one bedroom in prospect heights does seem a tad on the high side. you know those fedders buildings (i know i know it’s a fedders), on bergen street in prospect heights? you can get entire newly renovated studio / one bedrooms there for 1200. with outdoor space! well, i know one person who did just last year. and that was last year!
our owners increased our rent by 50 bux. :-/ but we have been under market, who knows. so now it’s 2450 in park slope for a 2 bedroom with living room/open kitchen, and a den, duplex. so i think it’s sorta worth it.
*rob*
“when they factor in cost of moving and 12% of years rent to a realtor,, they could change their tune”
All dissipated when divided by average stay, Pete. Not to mention a falling rental market.
Use ads in NYT as comps but undercut them a little, brooklynrulz. It’s the most efficient market reference available (map, nabe breakdown, price history, etc.). But bypass the douchebag listings that don’t locate themselves (useless). Craigslist is impossible.
Yes, rents are falling. $1,600/mo unemployment checks only go so far. But they’re not falling as much, and won’t fall as much, as purchase prices because there was no direct leverage from cheap/EZ credit. Only indirect from higher salaries trickled down from housing bubble blood money in the overall economy.
If I had to put a number on it, I’d say -10% so far (confirm with comps mentioned above). -25% ultimately. $2K 1BR’s in the slope will probably be had for $1.5K when all said and done. If they’re good tenants, ask them what they’d like to pay. If they refuse or low ball, offer -10% (or conrirmed figure).
***Bid half off peak comps***
My landlord is smart offered 15 percent off without me even asking to keep me. If they are a good tennant you should knock off at least 100 but most likely 150. The only realtor fee that will have to be paid if they move will be you paying the realtor fee to get a new renter.
Landlord can look around for ads and realtors websites for comps. If garden apt includes outdoor space I wouldn’t even consider lowering. But only the landlord knows how large apt is, quality, and niceness factor of block..and can judge. My guess is not all that much available cheaper … for same size, quality of space.
Petebklyn… it doesn’t cost that much to move and you don’t need to use a realtor (and I really don’t know what the value-add for landlords is anyway).
And, yeah, out of principle… many folks might spend $1200 on moving if their landlord isn’t willing to lower their rent by $100/mo. What happens if the landlord can’t rent the place for a month? (Out $1800) Or even 2 weeks! (out $900) Instead of just knocking off $1200 of the annual rent.
It’s a business Pete… a two way street. Renting an apartment isn’t that much different than choosing where to buy a can of campbell’s soup. I’ll pay 20 cents more to shop at the store that has pleasant/helpful staff. The tenants are not posing an unreasonable question — the landlord can always say no and everyone can risk the consequences of a soft, renter’s market.
I’d say a fair price would be about $1150.
She’s right-rents are down and there are a lot of apts out there.
I’d knock off $100