Asymmetrical Information

So, make him an offer.

Is it possible he was using an above-average price to

1. Signal that this apartment was of above-average quality, or

2. Attract tenants with higher incomes, in the hope of avoiding non-monetary problems he might associate with low-income tenants, or

3. Not piss off his existing tenants by cutting the rent of this place and not theirs?

I can't see the listing from here, so I really have no idea, but there are legitimate reasons to price something abnormally high, even if it takes a while to sell.

Has the ad always said "available June 30"? If so, the only weird thing is that he started advertizing so early. Maybe he wants to have a large applicant pool to choose from.

The advertiser is also being a bit misleading; most of that new development in Columbia Heights won't be open until next summer.

My guess is that the landlord is not really motivated. He's probably one of those people with an emotional attachment to the property who is willing to forgo some rent in order to wait for a tenant with a similar attraction to the unit.

In my mother's neighborhood a long-time resident put her house up for sale with a ridiculously high asking price. In fact, she fired her original RE agent because he suggested she lower her price. The neighbors were especially tickled when a virtual tour of the house's interior revealed that she had not done one lick of renovations or updates to the house since it was built in 1970. No new appliances, floors, or decor! It seemed more like a museum than a home that someone would be willing to pay $1.5 million for (yes, that was her asking price).

Needless to say it took her over a year to sell that house, only after she finally dropped the price to $1.2 million. And even that price yielded more than a few snickers from the neighbors. But hey, for the seller the time was a non-issue since she is retired and wasn't in a rush situation.

Posting a high price and then negotiating a lower one on sight of the tenant is a well-established method of screening "undesirable" tenants (or purchasers, for that matter).

Maybe the problem is the current tennant and he expects it to rent easily once that person is gone.

So you're helping him out by giving him free advertising?

But it's so close to Ruby Tuesdays!!!!

I don't have anything *against* the guy; I'm perfectly happy for him to rent the place. I just suspect that he won't, since it's been two months with no takers.

Nothing ventured, nothing gained, Megan. Call him up and make an offer. what have YOU got to lose? 5 minutes of your time, maybe? If he takes the offer, it was a very profitable 5 minutes. If not, so what? His loss, not yours.

The apt has no light. At all. onl windows in the back and they are shaded by tress most of the day. patio is also shared.

"The apt has no light. At all."
There are a lot of mole-people here in the DC area. This is a real plus!

So I live in a 1 bedroom in Manhattan with a cheaper rent than that! Granted it's Washington Heights, but even Washington Heights is a hell of a lot cooler than the losers that hand out in Madam's Organ.

Perhaps it is a strapped homeowner trying to cover their mortgage? This is a pretty common profile in many urban areas.

Lowering rent may re-set the baseline rent for rent control purposes, thus limiting future increases. Ask for a free month or two in lieu of that.

Sheeit. That would be a fucking bargain if it were in Gaithersburg (outer, outer Merry Land burbs for you who don't know).

I'm almost ready to rent it myself and reverse commute, so I don't have to live in stinking Gaithersburg. Seriously. Especially if I could get the equivalent near central Bethesda.

Joel Bernstein

Good point. This is probably signalling in its purest form.

One also suspects 'Market for Lemons'. The market price is not the clearing price, due to imperfect information (about the quality of other properties on the market).

There are a lot of new Orange Line condos for rent -cheap!- by the flippers who bought them and thought they were going to make a lot of money quickly. Is your mom sure she doesn't want to live in the Courthouse -Clarendon -Virginia Square area?

Jane,

Check the tax differences between living in DC, Virginia, or Maryland. They may be significant enough to influence your decsion. Also check the local area for commute length. The metro is nice but expensive and is very crowded during rush. But what are you looking for? The 'feel' of the areas around each of the metro stops can be very different.

One last bit of advice. You should do your best to ensure the landlord is stable. If it a flipper in trouble you may move in only to have the place foreclosed on shortly thereafter and be out on the streets again. Its happened.

jane,

You can do better than that dump. Keep looking.

If it a flipper in trouble you may move in only to have the place foreclosed on shortly thereafter and be out on the streets again.

The new owner will have to honor any existing lease, unless the lease itself contains a clause to the contrary.

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