Starting in August 2015, we saw a drop in demand for apartment rentals. This slump lasted about 3 months, albeit we are not out of the weeds yet, by any stretch of the imagination. While demand his picked up since the slump, now we have ourselves a supply problem. Vacant units have been piling on top of each other for several months and now we have an unquestionable surplus of units for rent, at the slowest time of year to rent apartments. Scott Safadi believes that this situation is by no means dire and that we can expect to see a stable market by the summer of 2016, with rents remaining steady from that point on for at least a couple of years, barring any major world or economic event.

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Scott Safadi Discusses Current Rental Trends

by Scott on October 30, 2015

Scott Safadi has observed roughly a 15% reduction in Bay Area asking rents over the course of the last 3 months.  The reason for this appears to be a hiring slump in the tech sector, which has been the sector driving rent increases over the past several years. In fact, nearly 90% of our applicants since 2010 are employed by tech companies. This is somewhat reminiscent of 2001 in the sense that the rental market is being largely driven by one particular sector. On the other hand, tech is not just one sector when you’re talking about the Silicon Valley; it is THE sector. Additionally, the tech world of 2001 and the tech world of 2015 are vastly different. While 2001 was primarily comprised of fledgling companies trying to become something or trying to be purchased by the likes of Google, the tech world today in the Silicon Valley is one of many juggernauts, like Google, Apple, Linked-In, Facebook – the list could go on and on. People often forget about companies like Roku and Netflix as well; if you’ve heard of it and it’s tech, it’s probably based in the Bay Area. That all being said, Scott Safadi does not anticipate a massive bubble burst like we saw in 2001, nor does Scott Safadi anticipate any major rent slides. This 15% correction was probably overdue and can be seen as a good thing. A sign that the market is ready to stabilize. If it continued to rise double digits for years upon years, Scott Safadi would be seriously concerned about a true bubble. For now, things appear reasonably secure, but it all depends on jobs, at the of the day.

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Scott Safadi Discusses Interest Rates

September 18, 2015

Rumors about the fed wanting to raise interest rates have been circling around for over a year now, and we haven’t seen them move a bit. If it isn’t Europe’s problems, it’s China’s. The entire world is on thin ice, as far a economies go, and even though we’re much better off than we were […]

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Scott Safadi Discusses Politics

January 20, 2015

Scott Safadi believes that political agreements are hard to come by whether you’re talking about the house, the senate, or even just a casual gathering of friends at the coffee shop. But, there is one thing that Scott Safadi believes that most people could agree about, only if they understood the issue entirely. The issue […]

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Scott Safadi Discusses the Mountain View Tenant Relocation Program

October 22, 2014

Scott Safadi recently encountered a recently new bill that was passed in the City of Mountain View. This new bill requires landlords, who want to displace more than 4 apartment units in a one year period for the purpose of remodeling, to pay towards the relocation costs of certain tenants. Not all tenants can benefit […]

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Scott Safadi addresses furnishing apartments

September 9, 2014

Scott Safadi believes that in special circumstances, it could be worth the landlord’s while to furnish an apartment, rather than try to rent it unfurnished. What sorts of situations are most appropriate for this strategy? Scott Safadi thinks that one of the ideal circumstances you can have for furnishing an apartment is if you are […]

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Scott Safadi Discusses Affordability

August 26, 2014

Scott Safadi would like to address the issue of affordability in the housing sector, specifically regarding apartments in the Bay Area. Scott Safadi has witnessed double digit annual rent growth in this area over the course of the past 4 years. While this is very beneficial to landlords who experienced major dips in rents over […]

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Scott Safadi discusses tenant screening

January 14, 2013

Scott Safadi would like to take a moment to discuss tenant screening, specifically how we do it in our company. Scott Safadi believes that the screening of applicants is best handled by a third party agency, such as On-Site.com. By using a third party agency, the landlord can establish a portfolio-wide set of screening criteria […]

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Scott Safadi Discusses Roommates

December 7, 2012

Scott Safadi would like to discuss the matter of roommates or co-lessees in California. Scott Safadi wants you to imagine that you’ve moved in with your significant other, spouse, friend, or acquaintance. Let’s say that the arrangement was that both residents would split the rent each month. If one resident decides to stop paying and […]

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Scott Safadi Discusses Technology in Property Management

November 28, 2012

Scott Safadi operates a property management company out of Silicon Valley. Silicon Valley houses some of the most technology savvy renters in the United States and not surprisingly, some of the most technology savvy landlords in the nation as well. Scott Safadi believes that rather than being stuck in the old ways of traditional property […]

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