La Corona Del Mar Apartments in San Pedro California
What a difference a year makes. Landlord's were in the driver's seat just 18 months ago, with apartment seekers getting on lists for any possible vacancy. Apartment managers could set the terms, requiring huge deposits and long leases. All that has flipped completely the other way.
"We have the highest rated apartment building in San Pedro, and the residents in our community will happily sing our praises, but we are still experiencing the worst vacancy rate we've seen in 17 years," says Gary Larson, manager of La Corona Del Mar Apartments on 6th and Pacific. "We were not caught completely off guard, but this is the worst market in memory. That will change, but for now the residents are getting some great deals of some great apartments, hopeful there will be a return to a more balanced market once the economy improves. Also this has been mostly effecting the one bedroom units, not so much the two bedroom or larger. We think that is due to folks doubling up. We even have a small waiting list for our two bedrooms."
Most apartment owners respond to weak markets with modest adjustments in rental rates and terms, then just wait out the slow period. But this recession has been unlike any other in how rapidly the market changed. Larson explains, "We have seen entire weeks go by where we haven't added one new resident. That never happens."
The result can be seen all over the Los Angeles area. First Month Free banners are hanging from apartment buildings, sign spinners are pointing out buildings that are offering $500 moves you in, and potential new tenants are being wooed by anxious managers with rental rates unheard of 2 years ago.
"Our units are access controlled, offer underground parking, and we are located blocks from the beach. Who wouldn't want to live in an area that claims to have the most moderate year round temperature in the US. We've been listing a one bedroom at $895 for the last six weeks, and there isn't a long line out the door waiting to grab it," Larson sighs.
The problem is not local to Los Angeles or San Pedro, it is worldwide with vacancies hovering in the 15% level and higher almost everywhere you look. So landlords are getting creative in their attempt to attract the few would be new residents looking at this time.
One building in Colorado has added a cigar room with humidors, free laptop and mountain bike rentals, and spray tanning rooms. Another complex is pushing a concept that's even more unusual: a clothing optional sun deck.
“I don't know if anybody uses it or not,” said the manager, who leased a two-bedroom apartment after the announcement “It's up on the top floor and in a very secluded area.”
Gary Larson at La Corona Del Mar Apartments is not quite ready for Cigar humidors or clothing optional sun decks, but he is ready to try new things. "We have BBQ's for the residents and try to be responsive to every request for help. But to we are going to kick it up a notch. We are offering a fully furnished room for short or long term rentals, and if that is successful, we will add more. We've always allowed cats and we offer 7 days of free cat sitting per year when folks are out of town. Now I am even offering to loan out my cat if someone does not want a full-time commitment! He does not care as long as you feed him and pet him." Larson offered.
"We are offering an Ipod Touch to new residents who sign at least a 6 month lease. This is on top of our already generous $250 move in offer and drastically reduced rents. We are prepared to do more, and are in a 'make us an offer' mode right now. San Pedro is such a great place to live, with the new arts community growing like crazy, but we understand that times are tough, so we are prepared to help where we can."
