I feel like I need to share this.
The more people are aware of it — the better.
First time I saw this technique when I just moved from Maryland to California. I remember signing a lease contract and there was an option to sign for a year and more. 14 months was the longest option available. They told me “Oh, the price is going up so it is a good idea to sign for as long as possible”.
FALSE
Every time you sign a contract for anything other than a year — you might end up in a very bad situation.
The way it works is very simple:
They want as much tenants as possible to have their lease ending at the same time of the year. Currently it is summer, but they can easy change it to any other month. They all are doing the same and I assume it is a collusion.
So let’s say it is March and you’re signing for a 14 month lease. You will end up in May and you will have your price very high because 100 other tenants in your complex are in the same situation as you are. They are all looking and making demand very high. As a result price goes up.
Please be aware of it. Don’t sign any 6–7 month “sweet” contracts in winter. Don’t sign even for 13 month contracts because it will “shift” you towards their goal.
There are several ways for them to do it. Simple one is to give you better price for anything else than a year, which is controversial to common logic. Some of them are just silently sending you 13-months contracts assuming you would not pay attention and just sign it. Some of them can even give you a month or two months “free” if you sign for 6–7 month lease in winter.
There are many other ways they make sure you pay more than you think. Incorrectly calculated prorated rates is one of them. The so called “fees” that you have to pay once is another one. But all these have less damage than the one with the artificially heated market.
Please be aware.
