San Francisco Rental Market Update - November 2010 - Joanne Fazzio - J.Wavro Associates
November, 2010, has been very active for residential rentals in San Francisco, CA.
There is activity on everything from a Junior 1 bedroom in the Civic Center district for $1195 a month to a penthouse at the Watermark for $7500 a month. There is good traffic for any unit that is priced properly.
The trend for rentals in San Francisco, I believe, will continue to be active as new start ups are being funded and hiring. In addition, large companies like UCSF, Genentech and Google are hiring as well. People desire to live in SF whether they work in the City or commute to Silicon Valley or the Peninsula.
Whether it is a 1 bedroom with a den in the SOMA (South of Market) area, or a 2 bedroom with a sunroom in the Inner Richmond, there is activity – people are looking at moving into the City from other parts of the country and they are moving around within the City. Some people are downsizing and some people need a large place as their family grows.
Many people are renting their homes and condos that are not selling. I have several homes on the market right now due to these circumstances. Two of them are in Bernal Heights – both newly remodeled. Although we get enough traffic, one has been on the rental market for 2 months. It faces the 101 freeway and most people do not want to be so close to a freeway. The owners would not come down on their rental price until just recently, but it may have to go even lower or it may not rent until after the Holidays.
I just listed a very nice 2 bedroom house with a yard and a large private spa in Golden Gate Heights 2 days ago and have 4 parties coming to see it this weekend. It is priced to rent quickly as the owner is leaving in 2 weeks for a new job. It is very nicely remodeled and the owner is flexible in her price. I am confident we will receive applications this weekend.
Although prospective tenants have a lot to choose from, if you see something you like, you should jump on it and put your application in quickly – “if you like it, then other people are going to like it as well”. I have a 2 bedroom 2 bath condo in the North Waterfront that received 2 applications at the same time. The owner chose one of them but the transaction has not closed yet. If anything happens to the first choice of the owner, the second party is waiting to hear if they have a chance to rent it. Both are very well qualified. One party even offered a rental price higher than the asking price. In fact, I am involved in two transactions this week where a party offered higher than the asking price. Even in this market!