Saturday, October 15, 2011
Palmero rental rates steadily rising, and hit new highs
The rents for a two-bedroom, two-story Palermo town home have hit new highs. Two condos with spas are listed on the Internet at $1,450 a month. Here is the link. Advertised are an A model at 3661 Melody Lane and a D model at 3522 Melody Lane. Rates have been going up for the past two years. One concern of owners reported to Positively Palermo in the past was the rents were low in the past because the 34 unsold Enterprise Cos. rents all went on the market at the same time. That seems to have worked itself out of time. Miss Penny Lane says: She's hoping new her special friend might rent one of these gems.
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38 comments:
A couple years ago someone at a board meeting said that Village Properties and Enterprise just want dot rent out all the 34 units and fill them up. Enterprise said that was not the case and did do credit and other reference checks. But we did get some losers like that guy on Sandy Point who's father got him the place. But with so many units to rent at one time the rents were below market and this hurt owners who want dot rent out like us. I wonder how many owners had to do short sales or foreclosures because the rental prices set by Enterprise and VIllage Properties were so low. The ones going for $1,300 and $1,400 now were art a 1000 bucks just two years ago. GREAT they are going up. we will get better renters to boot.
Keeping the HOA fees artificially low are have had an impact on the monthly rents.
To 1238, that is a good point. The HOA by not raising the fees and using reserve money for operating expenses is underwriting these rental units who have had cheap rents.
Why is the HOA underwriting rentals?
I can assure you that the rental rates having nothing to do with the number of foreclosures or short sales. The truth is that you over paid for your unit and it is only worth about a third of that amount. This is an entry level condo complex in not so nice of a neighborhood. Blaming everything on renters might make you feel better but the truth is your home would even be worth less, and the HOA fees would be much higher, if the 34 units were vacant. The rental fees are increasing because people would rather rent in here than buy because the values are likely to decrease even further.
Another HOA increase will be good so the rents wil go up up up. love it.
Rents are going up so much because this is a great place to live and the condos are fabulous. Once the 34 condos are sold, the rents will go even higher with the stock more limited. Not to mention the college and all the redevelopment in the works. Tired ofvthe sour grapes of renters like 1154 who can't buy here because they can't afford it and have poor credit.
You need to have good credit to rent a unit from VPM. No one with any business sense would buy for at least three or four years when the values have bottomed out. Why do you think three potential buyers of the 34 units have dropped out? I bet many of the renters have better credit, have owned several homes and higher net worth than you, especially considering the fact that your down payment has evaporated. Tired of the superior attidude and discrimination by some of the owners in this complex against renters.
To 207 LOL. Can you say "chip on your shoulder?" Love it when renters get so defensive. Thanks for the laugh, bud.
WOW, here goes that renter vs. owner crap again. Owners, don't blame the renters for your problems (I mean the ones that are blaming them) Believe me the HOA fees has little to do with my rent number one, number two we pay and always will pay the same thing as you. So the renter being here does not hold up water on that end.
To the 1:43 Post, "Cant afford it" "Poor credit" You mean the smart ones that did not buy and rented instead. Oh, you mean you qualified for the the no doc loan.. ooooo your samrt and rich. You mean your the one that can go sell you unit for a fraction of what you paid. So glad I am not up htere in your class of people.
If these are starter condos, don't come to San Francisco. These condos would be palaces here! And, as an owner, I really wish we could stop this bitter feud between renters and owners. We ALL live here and whether you rent or own, we all have an investment in making this a pleasant community. Can't wait to move down there permanently next month!
Divide the cost of the unit by the yearly rent. If over 15, rent. If under 15, buy. Right now those units renting for $1450 should be worth about $261,000. They are selling for much lower, because prices have overshot due to the negative return on investment.
Maybe the rents are not really increasing at all. The one for $1450 has been on the market for a while and is highly upgraded. There is another unit available for $900.00. Both are listed on "Craigslist."
To 1:20 pm.....If you live in Palermo and really think that way .....please pack up your junk and move out...or I should say move back to the trailer park you came from! lol
Hey 1:20... sounds like you have mistaken this site for Craigslist's Rants and Rave section. Hurry, go back home... they miss you. Tragic
After reading 1:20's comment, is there any doubt that at least one of the owners in here is a pompous, arrogant snob?
I mean the 2:22 post, not the 1:20. The 2:22 is the snobby owner.
In all the time I have been here the OWNERS are always the ones to point fingers the renters with mostly unsubstantiated accusations. The owners are always blaming the renters for their problems. That my friends it the very meaning of Snob. When ever you think you are better than a different class or group of people your a snob PERIOD. I am not saying ALL OWNERS HERE ARE SNOBS. That being said we do have a large group of owners here that act that way. Those DAM RENTERS ARE SO TERRIBLE. I am so tired of people on this sight that just cater to the bad and cling on to it. I remember this was all done and we saw beautiful pics, positive attitude now we are back to renter and owner bashing. ENOUGH this is not a perfect world, this is not a perfect place and we are not perfect people, please look at the good, it will NEVER be perfect. THere is constructive criticism and whining. We have leaped over the border :)
About the 8:57 comment, right on!
To 9:32, I don't think it really is an owner vs. renter thing. Most of the renters are great great people who are wonderful parts of our community. I am an owner am and glad they are here. The problem in my view is just a few problem ones which is always to be expected in a community this size. There are just a few who should not being renting here because they don't understand the rules and don't have the same kind of community feeling. I don't want to fuel any negatively but I do think most of the violations I see are from a few renters not any owners. I think it is up to all of us, owners, renter, HOA, DRM, to address these problems immediately and educate. But I also will say Palermo has improved so much over the last year in terms of community and people looking out for each other. IT IS REALLY GREAT.
I agree with most of what 10:28 says, accept that "not any owners" are culpable. I have personally seen owners breaking the rules too, especially with not always picking up after their dogs and parking in the street or with their rearends sticking out of the driveway into the street. But, I would wish we would declare a truce on this owner vs renter thing and all try to live in peace and harmony.
Here Here to the 10:44. I love your attitude! There will always be a certin segment of the population that will just not obey the rules and get arrogant about it. To them I say POOP ON YOU :)
Looks like 1:20 took down the post...hmmmmmm.....must have packs the bags and moved out.
One thing that would be nice would be neighborhood get-togethers to let people meet. Let's build our community. That is the best way to squeeze out bad apple that shows up now and then. Love ya all!
Keep-up all the bickering between renters and owners, the public (potential buyers and renters) is listening. Who would want to live at Palermo with all this goin' on, ON TOP OF the fact that the development is struggling to find a buyer? Y'all need to set aside all this trivial stuff and focus on the real important matter of raising HOA fees to maintain this development in order to attract a decent buyer.
Raise HOA fees? Why not cut costs....the answer is not to collect more money but live on a budget.
I don't understand, can someone help me here. Why is it that there is no expense committee or someone that help control the expenses. It seems that the board can use some help. It would appear that they are having trouble seeing the forest threw the trees. I think part of the problem is that only one board member resides here. I also noticed that not to many people show up for the HOA meeting. I think we have a lot of resources here (people wise) that we are not taking advantage of (asking them to help) As far as the owner vs tenant thing, can we just put that aside. I am sure we all have more productive things to do. OUr community could use a more people stepping up in ANY WAY they can.
To 3:02 pm.....if it bothers you so much then why do you continue to blog here? Like 10/18 at 4:09 says.....pack up and leave! :)
To 3:02 pm... you criticise everyone else for whining, but it seems you're whining more than anyone else. Jeez, can't we just stop this unproductive, antagonistic crap?
About cutting costs, I listened in on a HOA board meeting and one board member said that every time the idea comes up to cut that particular budget item is a sacred cow to the others.
Hello Everyone, This is Perry, a lot of you know me (I am the one with the halloween decorations) I would like to start off by saying if any of this comes off the wrong way I am sorry, that was not my goal. All this back and forth is just terrible. I do everything I can think of to make this a better community, some help and some miss the mark. The point is that I do it for both my son and to promote an old fashion community, you know neighbor watching out for neighbor. All this is just negative energy and I am sure not one of us is up for that. Life throws us enough curve balls that we all have to deal with. Please, will both sides take a step back and look at the good side of what we do have here. There is a saying, "It takes a community to raise a child" and several people here have had an integral part in my sons growing up here, everything from learning how to meet a stranger and shake his hand and introduce himself to fun neighbors that act like the elves (my neighbor) delivered some candy I am raising him her in this community so I have a vested interest in making this the best place for all of us to live in. I could use some help here people. This time last year we were all enjoying the decorations the neighbors put up around the community, lets go there again :)
I just got done typing this and all I can say is Thank God for spell check LOL
There is nothing wrong with living on a budget. However, the budget has to be a realistic estimate of what the actual costs to maintain the integrity of this development are.
Palermo's HOA fees are significantly lower than similar developments. I challenge you to name a development in Palm Springs that is within $100.00/month of Palermo's!
Past Board's have depleted the reserves to pay operating expenses. Thus maintaining artificially low HOA fees.This meets the needs of absentee landlords and the bank who want to maximize profits or keep their costs down. However, it does not provide a solid financial future for Palermo. Those of us who live here or visit and plan to do so for many years whether renters or owners will have to pay for this fiscal fiction. Neither the banks nor the landlords are charities I wish to contribute to.
to 707, good points. But we are on are way to better life. with the caring people here. They have made this such as good place and community. the board in 2010 was investors. Now people are talking and loving. Always problems in an HOA. Here it is really good because the old guard are on the way out.
LOVE IT HERE BABY.
GO PALERMO>>>
I think we should try to live within our means and cut costs when possible, but the reality is HOAs are rising with inflation. I think they were $220 originally? At 4% inflation they should be about $257 now. We should be able to trim using dumpsters, etc., but we are probably not going to get down to $220 again. Ever.
As an owner, I just have to say we should thank the renters and show some serious appreciation for them. When Enterprise left the HOA and the owners with their mess to clean up, if those 34 units weren't paying their HOA dues Palermo would be in a much worse scenario than it is now. The current HOA board is doing what they can living with the realities of a developer who likely used HOA dues to cover their own expenses as the market crashed because they ran the board at the time. DRM allowed it to happen because they just work for whomever is on the board and tells them what to do. If it was Enterprise in charge, they did their bidding. When the owners took possession of the HOA, its the owners. With all due respect to DRM, they just do what they could to keep more than 50% on their side at any given time -- not what is ethically correct. It's gonna get better. We should give thanks - we are doing pretty well under the circumstances. There are always going to be good renters and bad ones and good owners and bad owners. It's not perfect, but you can tell that everyone cares about the place - so let's just get along, be civil and hope for the best.
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