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4 years ago
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Why does renting houses always appear to be so much cheaper than apartments?

It seems that on craigslist and listing that include housing rentals, the houses are always like $300-400 cheaper?
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4 years ago
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Becareful. Some of the Houses for rent on Craigslist are scams....they are normally about $400/mo cheaper and say something about wanting you to take over payments...they work with foreclosures, etc. Then they want you to pay to see the rest of the listings. But the first 10 days or something is free...however, you cannot get ahold of them, ever, to cancel.

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Herbert Camey
Herbert Camey
Browsing Housing
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3 years ago
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utilities are not included in home rentals

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3 years ago
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I am not an expert but I have noticed it as well. I think it is because you are paying directly to the homeowner who profits a little and pays the rest to the mortgage company. Whereas with apartments, they need to make money for any vacancies they have and the threat of people not paying their bills on time so they up the rent of everyone to cover those expenses. Also a lot of apartments offer the amenities of gyms, pools, on site security and management that you must pay for. The management personnel has a salary after all.
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2 years ago
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I'm toally agree with ya people have hard time to paid their bills but they are bad spending habit so they should have kept their house by the way if they had money but I do pay my bills on times no matter what I spent on my budget because I worked 2 jobs

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1 year ago
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Its because gang members live with family in these neighborhoods. The structure and cost of paying rent prevent gangs from living in buildings. Plus most buildings do not allow applicants with criminal records.

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1 year ago
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actually, very few landlords or managers get paid at all. apartment buildings are frequently operated under an LLC, usually named after the address, street, or neighborhood the property is located on, and secretly owned by the big banks & investment companies. There are of course plenty of family owned buildings, but most of those were usually purchased in the 1970s or earlier. The banks & investment companies have huge branches of specifically assigned to research, crunch numbers, and figure out how to make the max profit off the property, by raising rents as much as legally possible. most homeowners on the other hand are renting out, say, their grandparents old home & don't spend as much time in the neighborhood & are unaware of what the big apartment complexes are charging. Most homeowners #1 concern is keeping the home vacant for as little time as possible, so they will lower the asking rent, hoping someone will move right in. Big complexes always have a couple vacancies, and will often secure the asking rent at market rate to ensure the customer believes there aren't any cheaper alternatives.

Also, utility bills for a home are almost always significantly higher than any apartment, especially for older homes that don't have upgraded energy efficient appliances. So all landlords take THAT into account when considering the affordability of their asking rent.

I work in real estate, specifically with apartments.

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1 year ago
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oh, and amenities, obviously. Really expensive "luxury" apartments usually have fully equipped gyms, pools, spas, saunas, concierge services, valet parking, dry cleaning services, game rooms, etc. Gotta pay staff to keep that up & contribute to the electricity bills somehow.

and to conclude the mangers not getting paid statement, they usually just get a free apartment (buildings with 14+ units in LA are required to have an on-site manager). only the big luxury buildings that have over 100+ units offer actual financial compensation to their managers. Some of the luxury buildings in, say, marina del rey that have 400+ units may pay their manager up to a $70K salary, but they are managing 400 apartments. Since nothing in marina del rey is less than $2k/mo, let's assume all 400 apartments are rented for $2,000/mo (which is much less than they probably actually make, since I've never seen a 2 bedroom around there go for less than $3,500/mo and sometimes up to $8,000/mo), then that hypothetical building makes $800,000 per MONTH. Of course, a lot of money goes to pay staff, utilities, property taxes, etc, but considering their potential income, and their $100 million dollar + price tags, you can see how the only ones who can afford them are the big banks. Even for smaller complexes, the profits are huge & accrued by cutting every expense possible, which often includes not paying your onsite manager & simply giving them a unit for free.

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2 years ago
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This occurs because companies say you are taking over mortgages from families that cant afford it anymore. In reality the house has been forclosed on and the bank owns it but it is vacant. These companies get a list of all these and make you pay $400 or so to access the list. They will probably rent one to you but they have no affiliation to the bank, and therefore you are a squatter. All they want is your $400, plus any rent silly people will give them.
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1 year ago
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No its because gangs exist in homes and gang members can't move in 10 at a time into their aunts apartment. Most buildings have no criminal record policy and have access control.

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1 year ago
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You're referring to housing scams, not the actual reason houses are cheaper than apartments.

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D` Smith
Home Buyer
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2 years ago
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Utilities and other miscellaneous costs with renting a house tend to be more than with an apartment. Some older apartments with lower rents tend to include at least a portion of these costs. Also when you rent a house, the tenant can typically cover small maintenance issues simply out of convenience since a house will not have on-site or on-call staffing.

But you should also be careful of scams. Besides those mentioned here so far, there are also the "out-of-town" scams. Don't send money to anyone in the mail supposedly in exchange for keys no matter how much they may seem sincere. The keys are likely not to show. You should also double check to be sure that you are dealing with the actual owner and not some pretender. This is not really possible to do when they are "in another country" as a notary will not work and the scam is to keep posting till someone falls for it and repeat.

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Colleen Corgan
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4 years ago
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I would think it would be the opposite, but I guess it depends on the type of house and the type of apartment building. Some apartment buildings offer a great deal of amenities and luxuries that you wouldn't get in a house (free gym, swimming pool, doorman, etc). Also, it's possible that apartment buildings are more "in the center of it" as well. Some people stray away from renting single family houses, as they can be more maintenance as well.

Obviously, there are a lot of perks with single family home rentals as well like increased space and privacy. I'm not sure- I know in Washington, DC and other major metro areas, renting a house or even townhouse is generally pricier.

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1 year ago
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yeah ive noticed that houses are much cheaper to rent than hotels...its amazing

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