Recession is officially over.
Its hard to find any bad news about local the economy these days:
One interesting personal experience was a rental I did before the weekend for a small Lower Nob Hill studio on Post St. that rented for $1250 briskly to gentleman earning $20K/month working the legal dept for a private equity fund downtown!
What happens when people of higher means come to live in areas and/or buildings that have been traditionally inhabited by people of lesser means?
It can translate that certain people who earn marginally enough money to qualify for and apartment, will find themselves feeling the competitive nature of the rental market typically experienced at the higher end of the rental spectrum.
Clearly that is what fuels the fire of the pro rent control voices in the city and you can be sure that there will be some push back from their leadership in the coming months. I recently read an article about a proposal from the left to create a tax for rent increases in excess of a certain 10% of the old base rent to dis-incentive landlords from doing buy outs. I’m not sure how much traction this has or will get but this is the sort of thing that causes a lot of excitement but doesn’t really have the legs to go anywhere.
In closing, continue to do what you are doing, make improvements upon vacancies and you will see that your units will rent at or above neighborhood averages. Rental properties located along transit corridors esp within 5-10 walk to tech company shuttles are preferred locations and will continue to command premium pricing. If you are torn on where to spend your remodel dollars btwn Mission or Outer sunset, I would spend it in the Mission.