Risky Renting in Palo Alto

Pretty much the craziest real estate market in California. It’s even more expensive than living in San Francisco if you have certain base standards of living. One of the options that the Guy* and I originally considering was to rent a BIG 5-6 bedroom house and live with several other people. We heard that it’s fairly common for Stanford students to do that, so it was originally enticing. It’s a matter of trade-offs – a little bit of privacy for having all of the amenities we’re used to and a lot more space! But I think the more we think about it, we’re tossing out that idea… it’s just too risky, and I can see it causing too many potential arguments and frustrations. So, back to the more predictable search for a one or two-bedroom apartment in and around Stanford. So far, the neighborhoods we’ve got our eyes on are Downtown Palo Alto, Downtown Menlo Park and College Terrace (which is essentially right next to Stanford). Rents vary pretty widely but it looks like I can get something in the $2200 range… if Andy and I split, that’s $1100, really only $100 more than what I pay now. So I will try to keep my budget to that, knowing that all of the utilities will likely be more in the end.

In my initial Craigs List searches, it seems like for that budget, we’ll either be able to get a really nice (i.e. what we’re used to) 1BR, or slightly less updated 2BR. Scarily enough, most properties are rented within a month of the move-in date, so I can’t start my serious searches for quite some time. Sigh.


*Footnote: Yes, you deduced correctly… the plan is for the Guy to move out to Cali with me. Yes, that’s right, the plan is actually for him to quit his job and find a new one (he hopes in a different industry) in this market. Right, I know, more evidence of my/our craziness. But he won’t quit his job until he finds another one, and if it doesn’t work out right away… we’ll do distance and be patient!

Moving-In Landmines

So the Guy and I are thinking about moving in together.

Something that I have wanted and been ready for – for months and months. I never spend time in my place as it is. I get so frustrated shuttling clothes back and forth. And now I can help him pay his mortgage rather than spending a thousand dollars in rent for a place I sleep in once a month. All sounds good, right? But I know there are landmines I’m not seeing. Those of you who made this choice fairly recently – any warnings or advice before I sell all my stuff? The Guy and I definitely do not share the same sense of frugality, but we are very open with each other, and I think we are comfortable with some push and pull. He likes it when I help him grow and learn about his finances, and I know when to back off and just let him be him.

I think. Help… What are those moving-in landmines you don't see coming?

The Convention

So my current city is hosting the Republican National Convention this year and the money and people influx this summer will be pretty impressive. Minnesota Monthly magazine is predicting that there should be more protestors (50,000 estimated) than attendees (45,000). The Guy is planning to rent out his condo to make some money. A couple thousand for the week! Too bad I can’t do the same, since I already rent! Rah!

Fun Site: Bag Borrow or Steal

I know this goes against my whole philosophy of avoiding temptations to spend (even when it’s a sale, or an awesome deal, etc. etc.). However, when there are those real occasions (like the umpteen weddings I have this summer) where you want to look good or have that extra special something, it could be worth it to “rent” an expensive item vs. dropping tons of money on it. Bag Borrow or Steal lets you rent bags by the week or by the month, and it’s really not that expensive.

Definitely become a member, even if you are just borrowing one accessory. The one month membership fee of $10 usually makes up for the savings discrepancy between the member and guest rental rates. There are some awesome bags out there for super cheap (as long as you have the discipline to send them back after a week or so) and this is one where I think the return and enjoyment of using a designer bag outweighs the total cost. I think it seems like a really great business model as well, especially in these economic times where everyone is experiencing a bit of lifestyle inflation regardless of income (it always shocks me to see people who I know are not wealthy carrying around a brand name bag that you know is in the hundreds and thousands of dollars). I think it would definitely be a great “savings” for an event for which you would normally purchase new things.

Only thing to watch out for – pretty expensive shipping fees. Think ahead and make sure you’re only paying the standard rate vs. any of the speedier options.

PF Shock: Older Does Not = Wiser

I had a bit of a shock the other day as I watched my manager jot a note to herself to pay her rent. I was a bit shocked to know that an HBS grad who makes 3x my salary and who is so much older and wiser than I am – is still renting. In the Midwest. We’re not in New York, people. Her husband makes the same six-figure salary she does. This seems unconscionable to me. I know that I rent and this bums me out… but she is in her mid-thirties, not mid-twenties. I know there are extenuating circumstances but I still felt like giving myself a little pat on the back that I hopefully won’t be in the same situation at that age.

Uh Oh

Forbes.com just cited New York as the world’s #4 most expensive rental market, and noted that it’s “not at all uncommon for people to spend over half their take-home pay on housing” there. As someone who’s thinking about moving there in a year or two, that makes me swallow hard. Although I’ve read lots of other pf blogs from New Yorkers, and you guys do a lot better than me in my cheap Midwest digs. Kudos. Interesting, but not surprising, that every other city in the top 10 most expensive rental markets was outside of the U.S.