4 ms·

Thank you, that's a good context. In the building where we moved in 3 years ago from SF, they didn't offer any free rent at point as they were completely full.

by doh 6y ago

Thank you, that's a good context. In the building where we moved in 3 years ago from SF, they didn't offer any free rent at point as they were completely full. However, the larger point stand. Most building did offer around a month of free rent to new tenants in last couple of years.

slg 6y ago
Interesting, I got 4 weeks free when I moved to the area in 2017. Although I am sure there were places that didn't offer that. The closer a place gets to being full, the more important it is to renew leases at the full sticker price rather than reaching 100% occupancy. I know I was able to bargain down my rent during my last lease renewal because the building was still offering free rent to new residents.
- doh 6y ago
  We renegotiated 3 times a significant discounts as more supply started seeping in. In our last renewal we got 3 months free and 1 parking spot free. Whenever we spoke with neighbors they were so thankful that they didn't increase the price that they immediately signed. In fact of the maybe 20 people we spoke over the years, none attempted to renegotiate their lease. My expectation is as PPP is now running its course a lot of white collar jobs will be terminated which will put pressure on the housing market as whole. I believe we should see a dramatic drop in prices by early next year (nobody really buys/sells during holidays).
  - acidbaseextract 6y ago
    How do you renegotiate? It seems like you need to be willing to walk to have any negotiating leverage, and moving is a pain in the ass.
    - doh 6y ago
      That’s correct. I’m ready to move. I found out that the pain is not as bad as it seems and I actually like moving. But even if you don’t like it, there is little to be lost. The worst they can do is to say no and then you pay whatever rate they asked for if you decide to stay. I tend to reside in more expensive buildings so they have harder time finding tenants. That’s why I ask for the costs of finding a new tenant as a discount. This only works in falling market or in market with plentiful of supply. When we lived in SF we paid what they asked for.
      - acidbaseextract 6y ago
        > That’s why I ask for the costs of finding a new tenant as a discount. Great stuff. Thank you for the reply!
    - lotsofpulp 6y ago
      Finding desirable tenants can sometimes be a pain in the ass too. But being willing to walk away is, of course, the best negotiating position.
      - doh 6y ago
        That's right. I tend to negotiate less on the initial lease and negotiate more on its renewal as we prove that we are a valuable tenant (paying on time, low interaction, ...). Even when we lived in SF, where negotiations were almost impossible as they would have filled the unit within a week, they still were willing to do something in order to retain us.
        taylorhou 6y ago
        absolutely this. whenever our PMs come to us with tenant requests for discounts and we (upper management) take a single look at their ledger of on-time and online payments, we immediately do a back of the napkin calculation of the cost of a turnover vs the discount and even if its in a turnover's favor, we usually say give it to them because of the uncertainty of turnovers. think of the analogy "even money" in blackjack - when the dealer is showing an Ace but you've got blackjack, most objective people will take the "even money" versus gamble against whether the dealer has BJ or not. also why you tend to not split tens unless you're counting =p

by doh 6y ago

slg 6y ago

Interesting, I got 4 weeks free when I moved to the area in 2017. Although I am sure there were places that didn't offer that. The closer a place gets to being full, the more important it is to renew leases at the full sticker price rather than reaching 100% occupancy. I know I was able to bargain down my rent during my last lease renewal because the building was still offering free rent to new residents.

doh 6y ago
We renegotiated 3 times a significant discounts as more supply started seeping in. In our last renewal we got 3 months free and 1 parking spot free. Whenever we spoke with neighbors they were so thankful that they didn't increase the price that they immediately signed. In fact of the maybe 20 people we spoke over the years, none attempted to renegotiate their lease. My expectation is as PPP is now running its course a lot of white collar jobs will be terminated which will put pressure on the housing market as whole. I believe we should see a dramatic drop in prices by early next year (nobody really buys/sells during holidays).
- acidbaseextract 6y ago
  How do you renegotiate? It seems like you need to be willing to walk to have any negotiating leverage, and moving is a pain in the ass.
  - doh 6y ago
    That’s correct. I’m ready to move. I found out that the pain is not as bad as it seems and I actually like moving. But even if you don’t like it, there is little to be lost. The worst they can do is to say no and then you pay whatever rate they asked for if you decide to stay. I tend to reside in more expensive buildings so they have harder time finding tenants. That’s why I ask for the costs of finding a new tenant as a discount. This only works in falling market or in market with plentiful of supply. When we lived in SF we paid what they asked for.
    - acidbaseextract 6y ago
      > That’s why I ask for the costs of finding a new tenant as a discount. Great stuff. Thank you for the reply!
  - lotsofpulp 6y ago
    Finding desirable tenants can sometimes be a pain in the ass too. But being willing to walk away is, of course, the best negotiating position.
    - doh 6y ago
      That's right. I tend to negotiate less on the initial lease and negotiate more on its renewal as we prove that we are a valuable tenant (paying on time, low interaction, ...). Even when we lived in SF, where negotiations were almost impossible as they would have filled the unit within a week, they still were willing to do something in order to retain us.
      - taylorhou 6y ago
        absolutely this. whenever our PMs come to us with tenant requests for discounts and we (upper management) take a single look at their ledger of on-time and online payments, we immediately do a back of the napkin calculation of the cost of a turnover vs the discount and even if its in a turnover's favor, we usually say give it to them because of the uncertainty of turnovers. think of the analogy "even money" in blackjack - when the dealer is showing an Ace but you've got blackjack, most objective people will take the "even money" versus gamble against whether the dealer has BJ or not. also why you tend to not split tens unless you're counting =p