Does a 24 month apartment lease save money?
Im moving into these apartmenrs In Irvine, California. I have the option of choosing a 11 month lease for $1,883 OR a 24 month lease for $1,948.
So if i pick the 24 month option would it save me money if i dont pick the 11 month option which is when the rent would most likely rise if i do pick the 11 month option.
I am looking to finally settle down after moving so much and be an apartment for a good number ofyears.
Also does anyone know if rent raises alot in Irvine, orange county California???
- SimplytheFACTSLv 73 years agoFavourite answer
impossible to say, they could raise your rent more than 200 in a year with the 11 month lease, the 24 month is at least guaranteed. just be sure you really plan to stay there at least 2 years
- loanmasteroneLv 73 years ago
A lease would guarantee that your rent would remain the same for the terms of the lease agreement.
Once your lease has expired, you would be offered a new lease, with a rent increase. Very seldom do you rent remain the same after your lease expire.
If your lease is not renew, you would automatically convert to a month to month tenancy. Being on a month to month tenancy, your landlord is able to increase your rent by giving you the proper notice, normally 3 days that the rent would be increased.
If you are making an attempt to compare the rent you would pay for a 24 month lease and a 11 month lease, the cheaper 11 month lease would cost less, it is just that the 11 month lease would end sooner. The 24 month lease would be in effect the longest, making you payments the same over a longer period of time.
If your landlord raised your rent by $65.00 after your 11 month lease has expired, you would virtually have a wash, give or take a few pennies here and there.
We are not able to look into the future and figure out what your landlord would raise your rent to after the 11 month lease is complete.
I hope this has been of some benefit to you, good luck.
- A HunchLv 73 years ago
Apartments in Irvine are owned by the Irvine Company.
They will raise the rent to what market values are in a year. Housing is supposed to go down 2% in SoCal over the next 12 months. If that happens, you have greatly overpaid for your apartment.
If that doesn't happen, you might be out better off taking the 24 month lease. But remember, the Irvine Company also includes hefty least termination fees.
Unless there is a specific reason to be in Irvine, I wouldn't rent there (buying is different). Instead consider:
- the triangle square area of Newport Beach
- off Harbor in Costa Mesa
- near the Camp in Costa Mesa
- South Coast Metro area (55 & MacArthur)
- SlickterpLv 73 years ago
You should always expect the rent to increase some each year.
1948x24 = 46752
1883x11 = 20713
so: 26039 difference, or 2003 per month for the 13 month difference. You pay $65 more the first 11 months in the 24 month option, hoping the rent increase would have been more than $120 at the 11 month point. If the rent increase that they bring at the 11 month period is LESS than $120 a month, the 11 month option is better, if MORE, its worse....but you can't know that until the y bring the increase. For me, a $120 increase isn't nuts (6%). I'd take the 24 month lease end, the loss is minimal if you lose.
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- StanLv 63 years ago
If you go for the 24, at least you'll know that the rent will be the same the following year. However, you discovered you no longer like living there after the first 11 months, you're stuck.Source(s): Retired bill collector 35 years