Huge Price gap between market price and real price ( rent concession) (apartment, lease)
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We recently applied an $1150/per month apartment and paid the deposit to reserve the unit. After we received the lease from landlord, we haven't signed it, but it stated in the concession addendum where the market price is $1600, which is $450 higher then the real price we got. We search and find out this is so call "Rent concession". We do some research and the average rent price in that area is actually not that high. We never heard from the landlord about the $1600 market rent but only the $1150 before we got the lease. What should we do for this situation? Can we ask the landlord to proof where is the $1600 market price from? If they refused to drop the price to a reasonable price, could we get our deposit back? Thanks.
You already thought the $1150 was a reasonable price or you wouldn't have put down a deposit to reserve a unit. Rental concession are common in large corporate owned complexes. As long as your lease says you're rental rate is the $1150 you agreed upon they aren't doing anything 'shady' and there's nothing for them to 'prove' to you.
Why didn't you research rental prices before putting money on the table? If you back out at this point, you will lose your deposit. You've already been approved by the complex and you have the lease in your hand to sign, so backing out will forfeit your deposit.
Are you trying to get an apartment for $450/month less than everybody else pays? Not going to happen.
$1600 is what the owners would like to rent it for. It's more or less their dream target, but it also allows them to give everybody a discount. Your particular discount is $450. They do this because the real market in your area is probably $1150/month.
So you are paying market rent.
Check your lease for cancellation terms. That will dictate what you do and do not get back, plus any penalties you need to pay when breaking thst lease. Two months is pretty typical.
After you do all of that, fund a new place to rent. I am going to guess that anything comparable in your area is going to be about 1150.
We have done a lot of work before we have put the deposit to reserve the unit. Yes, the average rent is about $1150 in this area for this type of room and size, and this is why we decide to go for it. However, we didn't hear anything about this $1150 is a special price, but the market price the landlord think it is actually $1600. So now we have the rent concession $450 per month. We are worried about in the normal situation, this may not a big deal. But what we checked on the lease, when some thing break the lease, then we need to pay full price instead of the special $1150, this is really scared us.
But what we checked on the lease, when some thing break the lease, then we need to pay full price instead of the special $1150, this is really scared us.
Then don't break the lease. If you're planning on breaking the lease, don't sign up for a lease but take a rental where the contract is a month to month.
If you don't want to sign the lease, go and find something else to rent. Your lease says how much you will be paying. It's the $1150 stated in the lease, not the $1600.
The only thing that I can think of that might be an issue is that at the end of the lease, the management might try to up your rent to what they consider market rate. So, you need to check the lease carefully for clauses about automatic renewal and about how much notice you would have to give when you move out.
If you don't want to sign the lease, go and find something else to rent. Your lease says how much you will be paying. It's the $1150 stated in the lease, not the $1600.
The only thing that I can think of that might be an issue is that at the end of the lease, the management might try to up your rent to what they consider market rate. So, you need to check the lease carefully for clauses about automatic renewal and about how much notice you would have to give when you move out.
Plus if they break the lease, they might charge them the concession fees. I knew someone that was charged this as part of her lease breakage fee. (I don't remember the details but it was outrageous)
OP, ask them if they can give you another lease filled out with just the rent amount you agreed upon. It can't hurt to ask. But if you are planning on staying the lease term, don't worry about it or look for another place.
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