Author Topic: Rental market implosion in Lakewood- implications  (Read 39162 times)

Offline jye

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Re: Rental market implosion in Lakewood- implications
« Reply #60 on: May 03, 2017, 10:49:03 AM »
being unable to pay your mortgage payment can be very effective in getting people to adjust

If everyone acted rationally and was financially responsible 80% of Lakewood would be wearing hand me downs and the Voice Of Lakewood would be a whole lot thinner...

Offline cmey

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Re: Rental market implosion in Lakewood- implications
« Reply #61 on: May 03, 2017, 11:30:48 PM »
Starting to see a couple of instances of young couples buying homes intending to live in the basement for a few years and rent out the upstairs to cover most of the mortgage, (a strategy that has become increasingly popular in the last few years) only to find that it is even harder to rent out the upstairs than the basement- at least at a price differential that would make it worthwhile to live in the basement- in the current market. These young couples are therefore choosing to move in upstairs and get what rent they can for the basement. Is this the start of a trend where we will see newlyweds/young couples living in 5 bedroom 3 bathroom homes?

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Re: Rental market implosion in Lakewood- implications
« Reply #62 on: May 04, 2017, 12:22:38 AM »
Is this the start of a trend where we will see newlyweds/young couples living in 5 bedroom 3 bathroom homes?

If they can afford it it'll leave them a lot of room to grow.
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Offline yzj

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Re: Rental market implosion in Lakewood- implications
« Reply #63 on: May 04, 2017, 09:23:03 AM »
If they can afford it it'll leave them a lot of room to grow.

True, and it may make sense for some newlyweds who want to settle down long term, or see buying a home as a hedge against future price increases, but it is a possible implication of the rental market collapse. Not too long ago most of the people buying houses were relatively older with several children, then came the trend of younger families with one or two kids buying and moving into the basement. If there is indeed a trend of newlyweds moving into large homes that would be a substantial change brought about by the rental situation.

Offline jye

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Re: Rental market implosion in Lakewood- implications
« Reply #64 on: May 07, 2017, 10:17:34 PM »
Starting to hear of people who are actively looking for apartments in the same or nearby neighborhood that they are currently renting to take advantage of rents that are $200 to $300 lower than they are currently paying for a newer and sometimes nicer apartment.. Even after moving costs are factored in they are looking at a $5000+ savings over 2 years. I don't know if they tried renegotiating the rent with their current landlord, or if they just figured that asking to go down from $1250-1300 down to $1000 would be a non starter...

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Re: Rental market implosion in Lakewood- implications
« Reply #65 on: May 07, 2017, 10:39:34 PM »
Starting to hear of people who are actively looking for apartments in the same or nearby neighborhood that they are currently renting to take advantage of rents that are $200 to $300 lower than they are currently paying for a newer and sometimes nicer apartment.. Even after moving costs are factored in they are looking at a $5000+ savings over 2 years. I don't know if they tried renegotiating the rent with their current landlord, or if they just figured that asking to go down from $1250-1300 down to $1000 would be a non starter...
It would be very short minded of the landlord not to negotiate. He will be left with empty months besides needing to rent it at the lower rate. With the current tenant they at least have no vacancy and can stay a little higher since he is saving them the move.
Feelings don't care about your facts

Offline Toasted

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Re: Rental market implosion in Lakewood- implications
« Reply #66 on: May 07, 2017, 11:01:53 PM »
Starting to hear of people who are actively looking for apartments in the same or nearby neighborhood that they are currently renting to take advantage of rents that are $200 to $300 lower than they are currently paying for a newer and sometimes nicer apartment.. Even after moving costs are factored in they are looking at a $5000+ savings over 2 years. I don't know if they tried renegotiating the rent with their current landlord, or if they just figured that asking to go down from $1250-1300 down to $1000 would be a non starter...
I've gotten plenty of those calls. When the first two questions someone asks is how big are the bedrooms and how old is the house......
Latest call I got was whether I'll do just two months in the summer.

One interesting trend I don't think you mentioned is people putting their basements up as vrbo's. if you get 7 days a month for 150 that's equivalent to a full rent. I think those guys are flooded by now as well. Additionally there's the cost of furnishings.

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Re: Rental market implosion in Lakewood- implications
« Reply #67 on: May 07, 2017, 11:04:40 PM »
In the good old days, you made up a months lost rent by churning another biz plat. Now that's gone too :'(.

Offline churnbabychurn

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Re: Rental market implosion in Lakewood- implications
« Reply #68 on: May 07, 2017, 11:18:31 PM »
And there is also the issue of basement tenants that don't exactly fit the 'ruach' of the development...
 

Offline jye

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Re: Rental market implosion in Lakewood- implications
« Reply #69 on: May 07, 2017, 11:27:24 PM »
In the good old days, you made up a months lost rent by churning another biz plat. Now that's gone too :'(.

There are a whole lot of folks doing as good and even far better than the old days but it takes a lot of work and some decent credit lines- and location can be a big factor-there are better places to be than Lakewood if you want to do ms on a massive scale.....

Offline jye

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Re: Rental market implosion in Lakewood- implications
« Reply #70 on: May 07, 2017, 11:31:34 PM »
And there is also the issue of basement tenants that don't exactly fit the 'ruach' of the development...

Is that a reflection on the state of the rental market or an issue that would be there anyway? I guess it makes it harder to turn away a problematic tenant because people are desperate...

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Re: Rental market implosion in Lakewood- implications
« Reply #71 on: May 07, 2017, 11:31:58 PM »
There are a whole lot of folks doing as good and even far better than the old days but it takes a lot of work and some decent credit lines- and location can be a big factor-there are better places to be than Lakewood if you want to do ms on a massive scale.....
Ever since the shopper had a kol korei that it's ossur..,.

Offline Eliyohu

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Re: Rental market implosion in Lakewood- implications
« Reply #72 on: May 07, 2017, 11:39:27 PM »
Well it's worked in the past and people are slow to adjust. Just a few years ago the numbers worked- rental income just about covered mortgage plus taxes and the principle paid down each month was icing on the cake..
Nowadays basement rental income barely even covers the property taxes

Starting to hear of people who are actively looking for apartments in the same or nearby neighborhood that they are currently renting to take advantage of rents that are $200 to $300 lower than they are currently paying for a newer and sometimes nicer apartment.. Even after moving costs are factored in they are looking at a $5000+ savings over 2 years. I don't know if they tried renegotiating the rent with their current landlord, or if they just figured that asking to go down from $1250-1300 down to $1000 would be a non starter...

I have lots of freinds who renegotiated.. however the landlords will only go down just so much.. cause let's face it how many people are actually going to pick up and move across the street... and they like to play the rachmnus card "if the market was the other way I wouldn't raise it that much..." the other issue is that plenty will say no problem but re-sign the lease for another 2 years which many tenants would rather not lock themselves down.

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Re: Rental market implosion in Lakewood- implications
« Reply #73 on: May 07, 2017, 11:42:04 PM »
Nowadays basement rental income barely even covers the property taxes

I have lots of freinds who renegotiated.. however the landlords will only go down just so much.. cause let's face it how many people are actually going to pick up and move across the street... and they like to play the rachmnus card "if the market was the other way I wouldn't raise it that much..." the other issue is that plenty will say no problem but re-sign the lease for another 2 years which many tenants would rather not lock themselves down.
The lease is something they will have if they move as well
Feelings don't care about your facts

Offline Eliyohu

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Re: Rental market implosion in Lakewood- implications
« Reply #74 on: May 07, 2017, 11:43:29 PM »
The lease is something they will have if they move as well
Hence they'd rather stay were they are...

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Re: Rental market implosion in Lakewood- implications
« Reply #75 on: May 07, 2017, 11:45:03 PM »
Hence they'd rather stay were they are...
It is a good way of calling their bluff
Feelings don't care about your facts

Offline jye

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Re: Rental market implosion in Lakewood- implications
« Reply #76 on: May 08, 2017, 12:07:58 AM »
Wouldn't be surprised to see some apartments coming with a free new car lease as a selling point.... It's the next logical step after the free month rent that some apartments are advertising...

Offline Super Speed

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Re: Rental market implosion in Lakewood- implications
« Reply #77 on: May 08, 2017, 12:12:38 AM »
People advertising free flights to Israel​...

Offline thaber

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Re: Rental market implosion in Lakewood- implications
« Reply #78 on: May 08, 2017, 02:58:57 AM »
Wouldn't be surprised to see some apartments coming with a free new car lease as a selling point.... It's the next logical step after the free month rent that some apartments are advertising...
Seriously? Free month rent is a common lure in  many rental markets

Offline yuneeq

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Re: Rental market implosion in Lakewood- implications
« Reply #79 on: May 08, 2017, 10:07:09 AM »
One interesting trend I don't think you mentioned is people putting their basements up as vrbo's. if you get 7 days a month for 150 that's equivalent to a full rent. I think those guys are flooded by now as well. Additionally there's the cost of furnishings.

You still pay listing fees, credit card fee, referral fee, cleaning between renters, etc.
Takes more than 7 days of renting to make up a month of rent.
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