Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Even with current rates you can buy a whole home for 4k / month. Why would anyone in their right mind spend that kind of money for some run down boomer condo in Montgomery county? You are delusional.

I don't get these posts. At current interest rates, with 20% down you are talking about a $750k house. That's not a house in the best parts of Montgomery County and nowhere near downtown Bethesda.

Also, that's just the mortgage payment. You also have property tax, homeowners insurance and then an expectation of annual maintenance. Your $4k/month is more like $5500 - $6000/month...and again, you aren't living in a dynamic place.

Finally, I assume your house doesn't come with a nice pool (maintained by someone else), a nice gym, maybe a nice clubhouse, rooftop deck, etc.

There are many empty-nesters that are happy to be done with SFH ownership and the interest they earn on selling their house more than pays for the $4000/month (or more like $3000/month) for a luxury downtown Bethesda rental.

Eh, disagree...I bought before interest rates spiked but pay 3400 monthly for mortgage and escrow and taxes for sfh in bethesda. I know empty nesters that own 1400 Sq ft coop, beautifully renovated, in further out bethesda ( not downtown) with building with indoor and outdoor pools, gym, restaurant, free parking, etc and no where close to 4k a month. This must be very large, luxurious and on top of metro

How is that relevant? You bought before interest rates spiked, so of course your 3400 was able to purchase far more house than today.

Even then, a $3400 mortgage payment (just principal and interest) at a 3% interest rate would equate to an $800,000 mortgage or a $1MM home value. Even 5-7 years ago, was anyone able to buy a decent SFH anywhere close to downtown Bethesda that didn't need tons of renovation for $1MM? I recall looking at nice houses near downtown Bethesda in like 20010 and it was hard to find a decent place for $1MM.

Anonymous wrote:My rent went up from 4400 to 5200 in 3 years for SFH (4 bedroom) at Fairfax, close to Braddock road. Overall, I am happy with it as I don't have to worry about any maintenance and landlord has been responsive. Rent in Fairfax has been going up for some time but nothing too crazy.

They are taking advantage of you.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:That’s high for a condo. You can rent a house for that.

+1 I live in N Arlington a few blocks from a metro station and a small SFH just went up for rent near me for 4k.

4k/month for a condo is highway robbery. You got greedy OP. You tried to slide in a $75/month increase why? Just because you wanted to milk as much money as you could, but it backfired and now you’ve lost 4 months of rent and confining.

Does the SFH have a pool, gym, amenities? Do you have to pay for exterior landscape maintenance or do it yourself.

How is this apples to apples? You do realize most people that rent don’t want to rent a SFH.

If you are renting a SFH you can have the landlord responsible for landscaping or hire someone.

Just because you were able to find one person willing to pay that price for your condo doesn’t mean it’s worth that much. Maybe they were just desperate.

The market says your apartment isn’t worth that much. And you’re getting low quality applicants because all the smart ones know you’re greedy and they aren’t desperate.

Anonymous wrote:

Anonymous wrote:Even with current rates you can buy a whole home for 4k / month. Why would anyone in their right mind spend that kind of money for some run down boomer condo in Montgomery county? You are delusional.

I don't get these posts. At current interest rates, with 20% down you are talking about a $750k house. That's not a house in the best parts of Montgomery County and nowhere near downtown Bethesda.

Also, that's just the mortgage payment. You also have property tax, homeowners insurance and then an expectation of annual maintenance. Your $4k/month is more like $5500 - $6000/month...and again, you aren't living in a dynamic place.

Finally, I assume your house doesn't come with a nice pool (maintained by someone else), a nice gym, maybe a nice clubhouse, rooftop deck, etc.

There are many empty-nesters that are happy to be done with SFH ownership and the interest they earn on selling their house more than pays for the $4000/month (or more like $3000/month) for a luxury downtown Bethesda rental.

Eh, disagree...I bought before interest rates spiked but pay 3400 monthly for mortgage and escrow and taxes for sfh in bethesda. I know empty nesters that own 1400 Sq ft coop, beautifully renovated, in further out bethesda ( not downtown) with building with indoor and outdoor pools, gym, restaurant, free parking, etc and no where close to 4k a month. This must be very large, luxurious and on top of metro

My rent went up from 4400 to 5200 in 3 years for SFH (4 bedroom) at Fairfax, close to Braddock road. Overall, I am happy with it as I don't have to worry about any maintenance and landlord has been responsive. Rent in Fairfax has been going up for some time but nothing too crazy.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here. I'm not interested in debating why condos *shouldn't* cost $4K per month, and as I stated earlier, I don't want to provide lots of details that could potentially identify me - I'll just say it's a unit with a high-end renovation in an excellent location.

The main point is that I have been receiving these "too high" rents for years, and now all of a sudden, I'm not. Perhaps the high end of the market is falling. Just trying to get perspectives from other landlords in the area - any thoughts?

Did you start off charging $4K per month? Or did you get there after a series of rent hikes? If the latter, then your prior tenant may have just paid it to avoid moving even though it was higher than the market rate.

Most recent tenant began in 2022 at $3,900 and renewed in 2023 at $3,975. I only do small, inflation-type adjustments while a tenant is with me. Bigger increases, if needed, come between tenants. As mentioned, prior tenant in 2019 was at $3,200 (and then $3,280 in 2020 and $3,360 in 2021). The new lease in 2022 came on the heels of the massive bout of inflation, and tenant did not bat an eye at the $3,900 price tag - the property was only on the market for about a week.

So there we have it. You raised your rent more than $500 in 2022 for no reason other than "inflation" and got lucky with your last tenant that was likely desperate for housing. You keep replying to people's posts saying it's not overpriced without providing any justification (like exactly what amenities you're offering). Die on this hill and enjoy your lost income.

Go check what homes cost in 2019 vs. in 2022 and then get back to me (or you could look at groceries or cars or insurance or....).

Not sure what this has to do with renting a condo. Condo rental prices will be far more impacted by the supply-and-demand of competing condo buildings, and then there is always the factor of the brand new buildings with all the amenities. Also, you are competing against many huge publicly-traded REITs that can offer many months free rent and what not to get people in the building.

Here is an article from today's WSJ that you might find interesting: https://www.wsj.com/real-estate/americas-empty-apartments-are-finally-starting-to-fill-up-32011d11?mod=hp_lead_pos11

The worst of the pressures on pricing from new supply are likely behind us,” said Eric Bolton, chief executive of publicly traded landlord Mid-America Apartment Communities, on an October earnings call.

Housing affordability has become a hot-button election issue at the federal and local levels. Any sign that rents are poised to rise in 2025 could intensify pressure on the new administration to address housing costs. President Biden announced a plan over the summer to cap rent increases, though it would need to pass Congress.

Nationally, sales of apartment buildings have also started to pick up again, as investors become more confident that the market is bottoming and sellers are more willing to acquiesce on price.

Renters were hit hard by the historically high rent increases during the pandemic years, especially in Sunbelt cities, such as Phoenix and Tampa, Fla., where rents rose 20% or more during 12-month periods.

Throughout this year, the places with the highest renewal rent growth have been on the coasts and in the Midwest. New York City, Los Angeles, Indianapolis and Columbus, Ohio, saw renewal rent increases of 5% or more in July, according to Yardi. In Seattle, Equity Residential said in an October earnings call that it is seeing a pickup in leasing from Amazon employees, who are locking in apartments ahead of a five-day office attendance policy, scheduled to begin in January.

On the flip side is Austin, Texas, which has experienced a building boom after companies such as Tesla and Oracle moved offices there. Austin’s vacancy rate, if new buildings are included, is the highest in the country at over 15%, according to CoStar.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here. I'm not interested in debating why condos *shouldn't* cost $4K per month, and as I stated earlier, I don't want to provide lots of details that could potentially identify me - I'll just say it's a unit with a high-end renovation in an excellent location.

The main point is that I have been receiving these "too high" rents for years, and now all of a sudden, I'm not. Perhaps the high end of the market is falling. Just trying to get perspectives from other landlords in the area - any thoughts?

Did you start off charging $4K per month? Or did you get there after a series of rent hikes? If the latter, then your prior tenant may have just paid it to avoid moving even though it was higher than the market rate.

Most recent tenant began in 2022 at $3,900 and renewed in 2023 at $3,975. I only do small, inflation-type adjustments while a tenant is with me. Bigger increases, if needed, come between tenants. As mentioned, prior tenant in 2019 was at $3,200 (and then $3,280 in 2020 and $3,360 in 2021). The new lease in 2022 came on the heels of the massive bout of inflation, and tenant did not bat an eye at the $3,900 price tag - the property was only on the market for about a week.

So there we have it. You raised your rent more than $500 in 2022 for no reason other than "inflation" and got lucky with your last tenant that was likely desperate for housing. You keep replying to people's posts saying it's not overpriced without providing any justification (like exactly what amenities you're offering). Die on this hill and enjoy your lost income.

Go check what homes cost in 2019 vs. in 2022 and then get back to me (or you could look at groceries or cars or insurance or....).

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Even with current rates you can buy a whole home for 4k / month. Why would anyone in their right mind spend that kind of money for some run down boomer condo in Montgomery county? You are delusional.

I don't get these posts. At current interest rates, with 20% down you are talking about a $750k house. That's not a house in the best parts of Montgomery County and nowhere near downtown Bethesda.

Also, that's just the mortgage payment. You also have property tax, homeowners insurance and then an expectation of annual maintenance. Your $4k/month is more like $5500 - $6000/month...and again, you aren't living in a dynamic place.

Finally, I assume your house doesn't come with a nice pool (maintained by someone else), a nice gym, maybe a nice clubhouse, rooftop deck, etc.

There are many empty-nesters that are happy to be done with SFH ownership and the interest they earn on selling their house more than pays for the $4000/month (or more like $3000/month) for a luxury downtown Bethesda rental.

SFH can be bought for $750k all along the red line from Takoma to Glenmont. But I guess Silver Spring is not a “dynamic place”.

It’s certainly not downtown Bethesda. Many people would rather rent in Bethesda vs. own in Silver Spring.

as a longtime landlord, agree with posters who have stated that November is a tough season to get a renter. People don’t want to move during the holidays. Choices are lower the price until you get someone or eat many months of rent till spring/summer. We have typically found that the first option yields the higher revenue.

It’s because no one wants to sell and lose out on their low interest rate (which is a miscalculated decision, but that’s what’s happening). So if they move, they’re renting their place out rather than selling it, particularly if it’s a condo or smaller townhouse. This creates a glut of condos being offered for rent. You need to adjust the price till you get a renter.

Anonymous wrote:OP here. I'm not interested in debating why condos *shouldn't* cost $4K per month, and as I stated earlier, I don't want to provide lots of details that could potentially identify me - I'll just say it's a unit with a high-end renovation in an excellent location.

The main point is that I have been receiving these "too high" rents for years, and now all of a sudden, I'm not. Perhaps the high end of the market is falling. Just trying to get perspectives from other landlords in the area - any thoughts?

The "thoughts" are that you are charging too much.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here. I'm not interested in debating why condos *shouldn't* cost $4K per month, and as I stated earlier, I don't want to provide lots of details that could potentially identify me - I'll just say it's a unit with a high-end renovation in an excellent location.

The main point is that I have been receiving these "too high" rents for years, and now all of a sudden, I'm not. Perhaps the high end of the market is falling. Just trying to get perspectives from other landlords in the area - any thoughts?

Did you start off charging $4K per month? Or did you get there after a series of rent hikes? If the latter, then your prior tenant may have just paid it to avoid moving even though it was higher than the market rate.

Most recent tenant began in 2022 at $3,900 and renewed in 2023 at $3,975. I only do small, inflation-type adjustments while a tenant is with me. Bigger increases, if needed, come between tenants. As mentioned, prior tenant in 2019 was at $3,200 (and then $3,280 in 2020 and $3,360 in 2021). The new lease in 2022 came on the heels of the massive bout of inflation, and tenant did not bat an eye at the $3,900 price tag - the property was only on the market for about a week.

So there we have it. You raised your rent more than $500 in 2022 for no reason other than "inflation" and got lucky with your last tenant that was likely desperate for housing. You keep replying to people's posts saying it's not overpriced without providing any justification (like exactly what amenities you're offering). Die on this hill and enjoy your lost income.

Anonymous wrote:

Anonymous wrote:That’s high for a condo. You can rent a house for that.

+1 I live in N Arlington a few blocks from a metro station and a small SFH just went up for rent near me for 4k.

4k/month for a condo is highway robbery. You got greedy OP. You tried to slide in a $75/month increase why? Just because you wanted to milk as much money as you could, but it backfired and now you’ve lost 4 months of rent and confining.

Does the SFH have a pool, gym, amenities? Do you have to pay for exterior landscape maintenance or do it yourself.

How is this apples to apples? You do realize most people that rent don’t want to rent a SFH.

Anonymous wrote:That’s high for a condo. You can rent a house for that.

+1 I live in N Arlington a few blocks from a metro station and a small SFH just went up for rent near me for 4k.

4k/month for a condo is highway robbery. You got greedy OP. You tried to slide in a $75/month increase why? Just because you wanted to milk as much money as you could, but it backfired and now you’ve lost 4 months of rent and confining.