Finally, Renters Have Some Pull – WSJ.com
Finally, Renters Have Some Pull – WSJ.com
The overall weak rental market has emboldened a number of tenants to start negotiating with their landlords. Richard Laermer, owner of a public-relations firm, was heading toward 2009 with the prospect of lower income and a steep monthly rent — $4,700 for a two-bedroom, two-bathroom apartment in midtown New York City. So in November, he asked his landlord for a break. Even though it was months before his lease was up, he won a $200-a-month rent decrease.<snip>
Gentle persistence can pay off. Michael Soon Lee, a broker who owns Realty Unlimited in the San Francisco area, worked with a couple in November to lower their rent. The wife had recently been laid off, and the $1,800 monthly rent was too high. At first, the apartment manager refused to budge on price. But Mr. Lee advised the couple to approach the property’s owner, who reduced their rent to $1,400, asking only that they add another year to their lease.
Egads. More rental price falling news. But there is a silver lining to these dark clouds – with prices falling in Manhattan, this is the Bay Area’s opportunity to pull ahead and shine. Topping $4700 a month for a 2br may be hard – but if we pull together, I know it can happen! Let’s go!
February 2nd, 2009 at 12:15 am
Manhattan rents must be really hurting. There was also an article in Sunday’s New York Times about declining rents. The article said they are down 10 to 15% and has similar useless anecdotal data.
February 2nd, 2009 at 12:24 am
“if we pull together, I know it can happen! Let’s go!”
I’m ready. Where do we go, burbed? Show us the way!
February 2nd, 2009 at 7:58 am
Madhaus- But Manhattan is not the RBA. Good article. My friend who just moved to New Canaan, CT, an exclusive suburb, rented a brand new 5,000+sf house that the developer could not sell, for $5,000/month. His neighbor, with the same house that the same developer could not sell rented the house last summer for $7,500/month.
February 2nd, 2009 at 9:26 am
MV_Bound, glad to see you’re still posting here. I was worried we’d scared you away.
Manhattan isn’t the Real Bay Area, but it’s another Special Here place where owners think they are immune to economic conditions, prices only go up, and anyone who managed to buy something is more Gifted, Talented, and Amazing than those scummy renters. I don’t know if there’s a good name for this syndrome. Perhaps we should come up with one. I propose the term NARcissism.
February 8th, 2009 at 8:43 am
AP article counters:
It’s not every place where rents are dropping
February 8th, 2009 at 9:41 am
I’m sure rents will go down because they went up -literally- 35-40% for new renters in the last 18 months. When the stats for SF or SJ say rents are up 12% in a year, that means the new renters are taking a disproportionate hit. The small houses I own which I used to rent for $1700 are new $2300, etc. Some of this increase is to cover increased costs like insurance and gardening, but even so, rents have ballooned. I am expecting a slowdown and decline in the latter half of this year, but even so, we aren’t going back to where we were in 2006. It is very rare for rents in the bay area to take a significant hit- 2001 is the only time I think it ever happened. What more likely happens is prices stay flat for a long time.