Renting: an apartment complex vs individual landlords
Hi,
Can you please advise me about pros and cons of renting from an apartment complex vs renting from individual investors/landlords?
STABILITY:
I feel that renting from an apartment complex gives more stability - in my opinion an individual investor/landlord can be more likely to decide to sell the property and refuse to renew a lease. I guess that in some cases the landlord might even break the lease agreement earlier (after giving an advance notice). What is your opinion on the subject of lease renewal? Anything I can do to protect myself against this issue?
MAINTENANCE:
I guess it very much depends on the apartment complex / owner - I don't expect to see much difference in responsiveness between apartment complexes and individual landlords.
PRICE:
I hope I could have more choice and room to negotiate when dealing with an individual landlord. I currently rent a townhome in Avignon Townhomes in Redmond (the lease expires on Feb 08) and I am trying to find out more information about the rental market before I have to make a decision about the potential rent renewal.
CHOICE:
I guess there are much more SFHs for rent by individual landlords. Hopefully townhomes selection is also better.
LEGAL AGREEMENTS:
My company benefits give me a free real estate attorney consultation when moving, so I guess I should be safe from the legal side.
Thanks,
Lukasz
Can you please advise me about pros and cons of renting from an apartment complex vs renting from individual investors/landlords?
STABILITY:
I feel that renting from an apartment complex gives more stability - in my opinion an individual investor/landlord can be more likely to decide to sell the property and refuse to renew a lease. I guess that in some cases the landlord might even break the lease agreement earlier (after giving an advance notice). What is your opinion on the subject of lease renewal? Anything I can do to protect myself against this issue?
MAINTENANCE:
I guess it very much depends on the apartment complex / owner - I don't expect to see much difference in responsiveness between apartment complexes and individual landlords.
PRICE:
I hope I could have more choice and room to negotiate when dealing with an individual landlord. I currently rent a townhome in Avignon Townhomes in Redmond (the lease expires on Feb 08) and I am trying to find out more information about the rental market before I have to make a decision about the potential rent renewal.
CHOICE:
I guess there are much more SFHs for rent by individual landlords. Hopefully townhomes selection is also better.
LEGAL AGREEMENTS:
My company benefits give me a free real estate attorney consultation when moving, so I guess I should be safe from the legal side.
Thanks,
Lukasz
Comments
My neighbor just moved a block away and is renting his old house out. I can't imagine what the tenants will do when something breaks, as the owner is not at all handy and will have to hire somebody else to do the work. That's one thing to consider when renting from an individual owner--you could get very good maintenance support, or not.
In my experience, complexes and property management firms are more likely to be aggressive at raising rents. They are also more likely to go cheap on repairs or maintenance as compared to an individual landlord.
My suggestion is to do a marathon weekend of viewing places for rent. Figure out what you like and compare the prices to other areas. Doing that allows you to better know the going rates and to sniff out who will be a cool landlord to work with. I think we looked at close to 30 places before we ended up where we are at.
In terms of stability, maintenance and price, I think an individual landlord will provide you with the best balance of those.
$1150 for 1100sqft 2 bed, 2 bath, 2 miles from work.
I had to pay double rent for a month to get it, but it is the best deal I've seen period and the extra money was worth it.
When you see a good deal, act fast!
http://seattle.craigslist.org/search/apa/est?query=&minAsk=min&maxAsk=1200&bedrooms=2
Thanks,
Lukasz
When you are a good tenant, a smart landlord/property manager will want to keep you and the steady cash flow, and will generally limit rent increases to no more than the CPI. Again there is no predictability for the greed in this market, so it seems more of a crap-shoot in the end. You can get a feel for what to expect by the lease terms, and their general attitude.
Property managers can also be more of a wild card, since their fees are usually based upon a annual percentage of the rent. I also spent all summer looking for a reasonable in-city rental, North End or Central, and it was very, very tough. Dog eat Dog, and even then, they are rarely allowed. I ended up with a 2BD, 1BA in an older Triplex with a garage and utility room. Owned by a couple living in Northern CA--probably their nest egg, and bought 10 years ago. One year lease, then month-to-month. The rent was $995. There was a trade-off: I had to deep-clean, paint, and replace some fixtures myself, with only the materials being reimbursed. The basic systems are sound, but the windows are circa 1940's, and everything needs caulking... One thing I found rather interesting, is this property manager kept asking me "you plan to stay for awhile, right?" Well, if they don't raise the rent, and the first-time buyer prices remain completely out-of-wack, probably.
So, as others mentioned, there are advantages/disadvantages to each situation. Looking up the property history in the public records never hurts to get a feel for the likelyhood of major changes in the near term.
I have always preferred renting from individual landlords and have done so throughout most of the renting periods in my life. (I have been a homeowner also) I have dealt directly with the owner and have used leasing agencies in past situations.
With regards to stability...the apartment complexes...from what I have read on the apartment rental websites, have varied complaints of large rent increases in some complexes. I think that the landlord in general will always feel that they hold the upper hand by default because they "know what a PITA moving is" and figure that you'll suck it up and pay the increase rather than move. I mean really...who want's to box up all their Elvis collector plates, Hummel Figurines, China, Franklin Mint Issues and the 300 different kitchen gadgets that never get used anyways. Not to mention the garage full of unused camping gear, etc. etc. etc.
It sucks...doesn't it?
Well...there is a solution.
Learn to be a minimalist. Buy Quality and not quantity even if you have the means. Don't buy so much unnecessary stuff. Simple. Then...when they threaten the rent raise...bounce on out. Plenty of stuff out there. Negotiate. Don't wait until the last minute...start combing the ads for what's out there 2 months in advance. If you feel that you have to stay put...hold your cards close to your chest...your LL will no doubt understand that they will potentially lose a months rent while trying to rent out the place...more if you're talking about a condo. Don't be afraid to bring this argument to the table when renegotiating the lease. If you have been a good tenant (no problems with neighbors, treats property well, pays on time, doesn't always call needing something taken care of) then they will also take this into consideration considering that the next person might be the one to put the scuffs in their new engineeredhardwood floors or mar the granite countertops.
I've never had a problem with any of my private landlords with regards to maintenance...the only thing that ever broke was a refrigerator with $150 worth of food in it. The LL replaced the fridge immediately and offered to pay for the food without me even asking. I told him not to worry about the food. My rent didn't increase. If something can be fixed for $100 bucks, sometimes it is better to just eat the cost. Your landlord will never forget the $'s that they had to spend when the lease is up for renewal. Make sure that you tell the landlord about the issue however...and don't forget to remind them that you took care of it and don't worry about reimbursement. The LL will love you for that.
WRT price...HELL YES you can negotiate. Sometimes a good way to do this is to start looking sooner and find your next potential places...yes...places...plural. Don't show interest the first time you visit a place no matter how much you may like it. If one rents quickly...and the others have sat...that private LL will be more willing to negotiate as he'd rather have some rent coming in. Don't show interest the first time you visit a place no matter how much you may like it An empty rental makes a stressed, desperate LL.
Choice...Plenty of inventory on the private market. Especially condos.
Legal...who knows?...sounds like you have it all taken care of. Never had any legal problems in all my years...pretty standard process renting a place. You fill out a form...they do whatever checks they are going to do...you hopefully pass...you rent the place. If you are worried that it is a person that is going to lose the place to the bank due to insolvency maybe it wouldn't be so bad to check on them before renting from them.
http://www.apartmentratings.com/