Many new-hires coming into the area know their length of stay with their employer or school term and they want to sign long-term leases for 2 to 3 years and they are asking for a discounted rent.....they are SURPRISED when I say NO and NO!!!
Just like with a fixed term COMMERCIAL lease, there are escalating landlord costs with RESIDENTIAL properties also * taxes, insurance, HOA costs, repairs and maintenance. To DISCOUNT the rent 2 or 3 years in ADVANCE of KNOWING these costs puts the property owner at an EXTREME disadvantage. While the ATTRACTION of having a KNOWN resident (income stream) for several years is ENTICING for many property owners, by NOT building in rent escalators during the lease, they are GIVING AWAY the $$$ they think they have saved.
I will be increasing rents on most current residents with my lease renewal offers in late January and February, 2010. The % will be between 3 to 5%. For properties I am renting NOW in the slow season, I will end leases in the summer, 2010 OR I will increase rents after 6 months and end leases in 12 to 18 months - preferably 18 months - the summer of 2011.
Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
Central Virginia
LandlordWhisperer
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Thanks for sharing information on your market. Best wishes for continued success.
You must have a good rental market, here rents are dropping 5 to 10 % at renewal. What management program do you use.
Charles * PROMAS that integrates with my HomeRentals.net website. We have very FEW large rental homes because most landlords sold 3 to 5 years ago and our "shadow" rental homes have been rented. With UVa Med Cntr new-hires, incoming residets, increase in JAG families to UVA Law/JAG school, 800 DoD families coming in over the next 2 years AND many electing to return to grad school * our rental market is tight!!