Renting a Home in Laguna Niguel

Everyone knows by now that the available inventory in the Laguna Niguel housing market is very low due to fewer listings and more going into escrow. How is this impacting the rental market?

Today there are a total of 179 homes on the market for sale in Laguna Niguel of all types and price ranges. There are also 106 homes for lease of all types and price ranges. As far as detached homes there are only 15 homes under 2000 sqaure feet for lease in all of Laguna Niguel and they average 1,700 square feet for $2,809 per month. Homes from 2,000 square feet to 4,000 square feet average 2,671 square feet for $4,652 per month. There are 30 for lease in this range.

The net affect of the low inventory is that rental prices have been going up. Another impact on the rental market has been the increasing numbers of families who have been through short sales and now must rent. Currently home owners who have been through a short sale (and quit paying) can repurchase in three years. Landlords are constantly getting applicants who have poor credit but they have great jobs and good track records otherwise. Those folks are often a good bet because they have been homeowners and understand how to take care of a home.

Also because of the low rental inventory under $3,000 per month, many applicants are offering on multiple homes which also makes it imperative for landlords to make quick decisions. Most detached rental homes in this price range are moving very quickly, usually in two weeks or less.

Renters should put together a very clean package to present to the landlords and ask for a personal interview. I usually advise my rental clients to provide the following:

• Department of Real Estate rental application signed with SSN;
• A copy of a current FICO report;
• A letter describing the family and their situation'
• Two copies of paycheck stubs and copies of drivers licenses; and
• Proof of funds for deposits and first month’s rent will help as well.

If you have been through a short sale and have poor credit it is advisable to offer excess deposit or an extra month rent up front.

The upshot is that renters will pay more this year to rent.