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vgr's profile
Venkatesh Rao
Venkatesh Rao
Venkatesh Rao
@vgr

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Venkatesh Rao

@vgr

Conversational account. For work follow @ribbonfarm, @breaking_smart, @artofgig. Tweets are 90% vacuous views, apathetically held. Mediocritopian. IKEA builder.

Los Angeles, CA
venkateshrao.com
Joined August 2007

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    Venkatesh Rao‏ @vgr Jun 18
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    Can’t tell wtf is happening with LA rental market. I’m sensing a slight desperation that property managers are trying to hide. They are unable to move units at the price points they want but are trying to avoid lowering rents by increasing incentives. Insight anyone?

    6:24 PM - 18 Jun 2020
    • 9 Retweets
    • 106 Likes
    • Kris Karzy Rahul Ramchandani (.code chris) Justin Jackson Jo Passacagliostro • abhishek chaturvedi NothingBetter
    18 replies 9 retweets 106 likes
      1. New conversation
      2. Dandelion  👨🏽‍🎤 🏂‏ @decentralion Jun 18
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        Replying to @vgr

        I hear that once they lower rent, they get locked in to the low price due to rent control. So that creates an incentive to find ways to reduce effective price that don’t affect sticker price.

        1 reply 0 retweets 21 likes
      3. Daniel Kronovet‏ @kronosapiens Jun 19
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        Replying to @decentralion @vgr

        Correct. Also, the eviction freeze creates an incentive to keep units vacant, since theoretically any new tenants could abruptly stop paying rent at any time.

        0 replies 0 retweets 0 likes
      4. End of conversation
      1. New conversation
      2. Catherine Baab-Muguira‏ @Greedzilla1 Jun 18
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        Replying to @vgr

        It’s been going on in parts of Brooklyn (Park Slope/Gowanus etc) for years. The developers and property managers promise a free month or two on your lease while keeping the list price of your rent in the range they apparently want other developers to believe they’re getting

        1 reply 1 retweet 6 likes
      3. Venkatesh Rao‏ @vgr Jun 18
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        Replying to @Greedzilla1

        That’s not what I@ talking about. This is extra on top of that.

        0 replies 0 retweets 4 likes
      4. End of conversation
      1. ᴢᴀᴄʜ | 27/30 food habit streak‏ @braverius Jun 18
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        Replying to @vgr

        i've been keeping a close eye on the seattle + sf rental market and have noticed the same thing, lots and lots of incentives and a notable amount of vacancies at places that definitely did not have vacancies when i was looking around ~8 months ago

        0 replies 0 retweets 1 like
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      1. Jóhann Hannesson‏ @hannonizer Jun 18
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        Replying to @vgr

        The system isn't built to lower rents. Property Managers, especially the national companies, usually have budget and authority to give incentives up to a certain point so long as they secure a lease at close to market rate. You often need agreement from the owners to lower rents.

        0 replies 0 retweets 1 like
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      1. alth0u  😷 🏠‏ @alth0u Jun 18
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        Replying to @vgr

        caps on annual rent increases so they'll throw in things like 1-2 months free rather than lower lease price

        0 replies 1 retweet 16 likes
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      1. Andrew Benson‏ @pixlpa Jun 18
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        Replying to @vgr

        hmmm interesting. My wife has been watching the real estate listings, but I feel like that will be the last area to move downward.

        0 replies 0 retweets 2 likes
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      1. Chris Martz‏ @CHRISMARTZ Jun 18
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        Replying to @vgr

        car dealer mentality

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      1. New conversation
      2. Pamela Joy to the World Hobart‏ @amelapay Jun 18
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        Replying to @vgr

        Rents pretty much never go down, there are incentives built into the system like layers of opaque management and the thing ppl are mentioning about legally restricted rate increase rates that make them prefer empty apartment to cheaper one

        1 reply 1 retweet 10 likes
      3. Pamela Joy to the World Hobart‏ @amelapay Jun 18
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        Replying to @amelapay @vgr

        The way this happened in Brooklyn waterfront is that there were tax breaks for new construction to gentrify it, but they kept the theoretical rent high to maximize future rates while charging an Orwellian “preferential” rent ie market ratehttps://ny.curbed.com/2017/4/25/15425058/nyc-rent-stabilization-loophole-landlords …

        0 replies 0 retweets 9 likes
      4. End of conversation

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