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The Los Angeles Rental Market is Still Sizzling

By
Real Estate Broker/Owner with Home Jane Realty BRE# 01439865

A call will come in on a particular Los Angeles rental property, and by the time I make the call to the listing agent, it has already been leased.  You just can't get there fast enough.

I have discussed this with several of my fellow Los Angeles real estate agents and they are all seeing the same pattern.  We are doing more business with Los Angeles rental properties than buying and selling right now.  And they don't stay on the shelf.

This is more prevalent in the up to $3,000 price range, and decreases somewhat as you go up.  So, if you are moving to Los Angeles, downsizing your Los Angeles home,  or simply making a change in your living arrangements, don't hesitate when something comes on the market.  Be ready to see the home before it is gone.

Be sure you are clear with your real estate agent before they start showing you properties.
  • Do you have a pet?
  • Does the laundry have to be in the unit or are you O.K. with a community laundry?
  • Are you allergic to carpet?
  • Is a ground floor unit out?
  • How many parking spaces must you have?

Be clear.  This will save a lot of time and heartache in your search.  By the same token, given the lack of available properties right now, you may want to limit your "must haves."

Any combination of the items below is what you will need to produce in order to make an offer on that Los Angeles rental property, if you want to be seriously considered, and hopefully, get it:

  • Run your credit report.  You are allowed one free credit report from each bureau once a year.  However finding out how to do that can be cumbersome.  Creditscore.com is a good credit reporting site to try.  You do need to run all three bureaus and it has to be the full report, not just the scores.
  • Proof of income:  it could be bank or investment statements, tax return or 1099.  Every situation is different. Just know that you will probably have to show proof that you are able to cover the rent for the period of tenancy.
Someone is going to get that perfect Los Angeles Rental property, let's make sure it's you.

Los Angeles rental properties up to $3,000 on the Westside:

Buying or Selling Los Angeles Real Estate

Buying or selling a Los Angeles home can be a daunting process in a city this size, especially if you're new to L.A. Town. You'll need a resident expert to show you around and help you narrow down the areas where you might like to live. I will help you find the perfect home in the right area to fit your lifestyle, budget and needs! When I list and sell Los Angeles homes for my clients I strive to make the experience a pleasant one. My mission is to provide outstanding service while utilizing the best practices and systems available. If you are an absentee owner, you'll need someone to handle all the details that you can't handle remotely. That's where I come in - I'm there when you can't be. I also specialize in lease property in Los Angeles. Westside Los Angeles Real Estate, including, but not limited to: For more information on how I can best serve your Los Angeles real estate needs, don't hesitate to fill out the contact form or give me a call at 310-473-6919.

Comments(30)

William Johnson
Retired - La Jolla, CA
Retired

Hi Jane, I would guess that this rental frenzy will be spreading all across Southern Ca. There have been many distressed sales and renting while the rates are still affordable is drawing lots of takers. But those rates will be increasing out of the stratosphere soon like in New York where only 1/3 of the people in Manhattan own , the rest vie for rentals. So the state elected folks will be seizing the opportunity any time now to establish new terms for leases including rent control. Always trying to prove that there are not enough laws already, they will be using this time for them to jump on rent control. Watch the state begin some additional form of rental tax as well. Sign of the times. 

Aug 22, 2011 10:17 AM
Brenda Mullen
RE/MAX Associates - San Antonio, TX
Your San Antonio TX Real Estate Agent!!

The rental market here in San Antonio Texas is hot here too!  If one finds a rental that they want...they will need to jump on it quicky.  Good rentals stay on the market maybe a day or two.  It's crazy :)!

Aug 22, 2011 10:24 AM
Broker Patty Da Silva Da Silva
Green Realty Properties® - 954-667-7253 - Cooper City, FL
Top Listing Broker

Jane, I do very leasing myself but my REALTOR friends who do say the South Florida Rental Market is very much like what you have described the LA market to be; hot, hot, hot!!!

Aug 22, 2011 10:25 AM
Sidney Kutchuk - Realty Works Temecula Kutchuk - Realty Works Temecula
Realty Works Temecula - Temecula, CA
Realty Works Temecula

Jane:  Investors will be wise to purchase property with the buy and hold strategy in mind.  Rental stats are always an issue with investors and it's good to know they are healthy in your area.

Aug 22, 2011 10:33 AM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

William,  something most certainly has to give.....

Brenda, I am seeing this all over the country.

Patty,  I can imagine that is the case in your neck of the woods.

Jane,  however the prices still don't really work unless you are owner-user.

Aug 22, 2011 10:54 AM
Maya Swamy
Funds Available - Long Beach, CA
Ph.D. Long Beach, CA - fundsavailable.com

Jane I posted on this a few weeks ago as far as it concerned Long Beach. I too can't quite keep up with the rental demand. Also with rents going up and property prices and interest down investors can achieve a very, very decent cap rate.

Aug 22, 2011 01:04 PM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Maya,  in certain price ranges for sure.  But with the home prices here, it is not so cut and dried.

David,  yes, I totally agree.  

Aug 22, 2011 02:00 PM
John M. Scott
BRE # 01442690, Scott Keys Properties - San Francisco, CA
Broker / Owner San Francisco Bay Area

Jane, just curious. Where do you find the rental listings for rental clients if they aren't properties you represent? In SF there is no rental category on the MLS like the Peninsula MLS. Makes it hard to determine if commissions available? Most rentals are on Craigslist.

Aug 22, 2011 02:13 PM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

John,  you need to move down here.  We have a large rental market on the MLS.  Those that are not on the MLS generally don't pay fees.

Aug 22, 2011 02:26 PM
Cherise Selley
Selley Group Real Estate, LLC - Colorado Springs, CO
Colorado Springs Realtor

With your particular market Jane, I'm glad you've found the rental niche to help you to sustain until the selling sides are more feasible... g

Aug 22, 2011 03:03 PM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Gordon,  is L.A. ever going to be feasible?  :)

Aug 22, 2011 03:14 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Jane

Things seem to be heating up here as well, although not as you describe. I rented a home today to a client - the home JUST came on the market today in the almost-$4000-month range, and they move in on Saturday. Whew!

Sounds like you have the handle on the LA rental market, to the extent that is possible.

Jeff

Aug 22, 2011 04:59 PM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Jeff,  wow.  You really have to be on top of it to catch those.  Thank you for your kind words.

Aug 22, 2011 05:29 PM
Kathy Schowe
California Lifestyle Realty - La Quinta, CA
La Quinta, California 760-333-8886

The rental market here is hot too... dont' you have some clients that want to get away in the winter? :-)

Aug 22, 2011 05:52 PM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Kathy,  I would be blogging in Canada if I were you. 1 1/2 hours from L.A. won't do :)

Aug 22, 2011 05:57 PM
Doug Anderson
Tucker Associates Real Estate Services - Danville, CA
Bay Area Real Estate Views

Hi Jane. We run into the same problem up here. Make the call and they already have two applications in hand.

Aug 23, 2011 03:10 PM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Doug,  amazing eh!

Aug 23, 2011 03:48 PM
Sharon Paxson
Sharon Paxson, Realtor® EQTY Forbes Global Properties - Newport Beach, CA
Newport Beach Real Estate

Hi Jane, this is an excellent post about the Los Angeles rental market, and the properties do not stay on the market long at all. It is in the clients best interest to have a thorough and prepared lease application.

Aug 24, 2011 02:27 AM
Scott Hayes
(512) 786-8300 - Austin, TX
Realty Austin, Broker Associate

Jane,

 

As ususal, and outsider could come to Los Angeles, and get a grasp of the real estate market, by reading your blog post. Great local post.

Aug 24, 2011 04:17 PM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

Jane, you have a wonderful niche that you have developed so well with skill and grace...your posts are extremely thoughtful and complete on the rental market in your LA area...we have rentals and they too are in demand but not at the prices you see...

Aug 24, 2011 11:42 PM