All Forum Posts by: Minka Sha

@Minka Sha

On a related topic, I've been trying to figure out something about the midtown market for a while now, and I was wondering if you might be able to shed a little insight.

I realized the other day that I don't actually know anyone that still lives in Midtown any more. Most of us have settled down in close ring suburbs (East Sac/Land Park Arden/Natomas/South Sac) I'm also involved with a local theater company where I meet a lot of people in their mid to late 20s. These are the types of people who would have all lived in Midtown 10 years ago when I lived there. None of them do now. A lot of them are living in Oak Park, Arden, or with their parents.

So what I'm wondering, is where are all these 20 something year olds living in Midtown getting the money to spend on $1500 apartments (or $1095 apartments)? Where do they work? Are they commuting out to other areas for work? Are the jobs located downtown? State workers? Living beyond their means? Mom and Dad money?

@Minka Sha,

As far as the PM forgetting about you and not increasing your rents, that's highly unlikely.  They run reports and can see what everyone is paying in a complex.  Why would they choose someone else and not you to get more money?  You could ask some of your neighbors that your are on good terms with about their rents, if you comfortable with that and can talk to them.  You can also look to see what vacant units are listed for, if there are any.

As for who to talk to at the PM company, I would talk to the most senior person you can get the attention of.  There is no one set person who determines the rent increases, it's different across the companies, often determined by the size of the company.  For the properties I manage for other people, it's usually me who suggests a rent increase as the PM.  I usually get a feel for or discuss the owner's desires and tolerance for rent increases along with my opinions of the market at the time.  Some owners are happy with the rents and don't want to take a chance on turning over a unit that could cost $1,500 for a $25 increase if the tenant decides to move.  Others want an increase every year and are happy to have the rent increased whether the tenant moves or not. 

A lot has to do with the market and supply and demand.  If there are many available units in an area I strongly recommend against an increase unless the rents are already low or the area supports it.  If there are not a significant number of available units available or rent hasn't been raised reasonably then I recommend it.

Currently, I see a lot of for rent signs when I am driving around downtown so if they decide to raise the rents you have a lot of options.  The PM should know that it will take time and money to turn the unit over so unless they have a waiting list or other people who are willing to pay much more it may not be worth it to give you a large rent increase since you can find another place to live fairly easily.