Re: Why are almost all of the apartments available in Fairfax County so overpriced and disgusting?
Posted by:
A Landlord
()
Date: September 01, 2013 02:59PM
Very true Wrote:
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> I with you, the fucking rent is out of control,
> you would think that this area has an ocean down
> the street, hell in southern california the rent
> is the same, and a very short ride to the beach.
> I do understand some areas that can charge a lot
> because of the ability to walk to
> bars,restaurants, metro, ect. That I get, Other
> places should not be that expensive, but it is.
> so i'm not going to be a bitch, I deal with it.
Coulda, woulda, shoulda. In the words of Dr. Phil - it is what it is. If you have not owned property in Fairfax, then you have no idea how expensive it is. The purchase price is just the beginning.
I own a rental property (SFH) in Fairfax, which I recently spent 60K to renovate. When we put it on the market at $3,000/month we got feedback that it was listed too high. We got four offers in less than a week. It wasn't too high.
These are the costs incurred in renting out a property, at least from the perspective of the owner of a SFH:
- rehab/maintenance between tenants. In our case, we decided to do a major rehab, but we normally spend at least $1,000 - generally much more - between tenants (painting, cleaning, yard spruce up, etc.)
- at least one month's downtime between tenants to do this work, unless the previous tenants were spotless, the place doesn't need work, and the new tenants are flexible.
- one month's rent for a property management company to secure a new tenant. Much higher caliber tenant through a management company than through Craigslist.
- 8-10% of the monthly rental to have the management company handle the tenants. Plus additional fees (reserves, etc.). We just started doing this after the tenants from hell moved out.
- legal fees incurred in dealing with the tenants from hell.
- on-going maintenance. Stuff breaks down (appliances, heating/AC, roof, ...) and needs to be repaired or replaced. Plus the occasional natural event (flooding, trees falling, electrical strike, ...)
This does not include the mortgage, property taxes ($$$), insurance, etc. And it assumes that your tenant pays the rent (on time), does not trash the place, doesn't need to be evicted, etc.
Yes, we now turn a nice profit. But we've owned the place for years and put a lot of blood, sweat, and tears into it. I can only assume that our experience is a microcosm of that of a multi-unit apartment complex. It isn't easy.