Have you seen all of the infill projects in San Diego County?
Just North County alone has Ocean Creek located in Oceanside at Crouch and Oceanside Blvd., developed by JPI has 295 apartments.
Mill Creek Residential, at Oceanside Boulevard and Melrose Drive near the SPRINTER station has 323 apartments.
Then there's Vista Azul, a separate 70-unit affordable apartment complex and another 329 apartments for rent.
Are you doing the math? That's about 947 new rental units competing with existing inventory.
I haven't even mentioned the Goodson Project, near Encinitas Boulevard and Rancho Santa Fe Road. It’s approved for 250 apartments: 200 market-rate and 50 affordable units. And Lucia at Aviara 1205 Aviara Parkway in Carlsbad has 259 rental units, according to the City of Carlsbad’s housing directory.
OMG!
Carlsbad, Encinitas and Oceanside landlords... pay attention! Those new units are attracting your tenants WITH INCENTIVES including free rent and discounted monthly rents. After all, they have to fill their vacancies too.
Now, here’s where pride gets expensive. Say you’re asking $4,000 a month. A qualified applicant offers $3,900. You pass. Then the home sits empty for another 30 days. You just lost $4,000 trying to protect $1,200 in annual rent. It would take more than three years of that extra $100 a month to recover the vacancy loss.
Written by Mike Daniels, Broker at Rancho Coastal Properties, Inc.
