Chicago Relocation
 

Six Figure Rentals

December 27, 2012

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John D’Ambrogio

Below are some comments from Baird & Warner’s own Tom Gill.

USA Today wrote an interesting article on high priced rental homes. Below are some excerpts and comments.

Homes in popular cities like Miami, Los Angeles and New York are now being rented for six figures per month as what I’m going to dub, super rentals; Homes with monthly dues above $100,000 per month.

My first thought when reading the USA today article that referenced these homes was surprise. Who on earth would rent a home for that kind of money per month. Why wouldn’t you just buy your own house for that much? My second thought was realizing the type of consumers that these homes are geared towards.

In a hypothetical situation where I have millions and millions of dollars, it isn’t completely crazy to rent a house at that price. It’s a short term commitment that is private and similar to an accustomed way of living someone in that fiscal situation is most likely used to. The people who live in these houses are typically not planning on staying put there for an extended amount of time, but have the money to recreate a lifestyle they are inured to. It also provides space and security that you couldn’t find in a hotel. The article in addition points out that many of these people also have their own staff or crew that accompanies them, so a large house makes most sense to house them. While these super rentals have been around for some time, they are growing in popular areas like New York and Beverly Hills, and are common for actors or actresses that are shooting a film away from home.

As an average person, I still think it’s crazy to rent a house at that price. Although if I was in the market to rent a house like that, I might not think it was so crazy.

 

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