How can I tell if there is a demand for rentals in a given area?
Here's another newbie question...
I'm trying to buy my first investment property. How can I tell if there is a demand for rental property in the area I'm looking?
Couple easy ways, drive around check for rent signs. Check county auditor site for registered rentals, check sites like renotmeter that tracks a lot of rentals in areas. You could also check zillow or craigslist and see how many ads are up for rentals in area currently.
So the more rentals the better? There are about a dozen rentals in the area I'm looking at, and would hate to see a vacancy for any duration. Thanks!
Look at prices in the area (craigslist) and compare to an area that you are familiar with.
Or ask an agent if you know of one that is familiar with that area.
Or ask landlords in the area how much trouble they have filling units and what kind of tenants they work with.
Originally posted by @Sean Fitzgerald:
So the more rentals the better? There are about a dozen rentals in the area I'm looking at, and would hate to see a vacancy for any duration. Thanks!
Surely, the fewer rentals there are, the better it is for you and the worse it is for tenants. This is hit or miss, but on some sites you can get an idea of the demand by looking at the number of days the property has been listed for rent. If you're driving around, you can pay attention to how long for-rent signs stay in yards for properties similar to yours.
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#2 New Member Introductions Contributor
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To find out about an area go to IREM.org search for ARM certified property managers. Call 5 ask them what they see expenses running per category per unit. What do they see them selling for per unit, what is the market occupancy rate. What are the market rents? Ask them if they know anything coming up for sale. Great way to pick up some good info and possibly a deal.
You can also search NARPM.org for the RMP (Residential Management Professional) and MPM (Master Property Manager) certified.
Paul
I figure demand based on yard signs and craigslist ads posted by other landlords. Post a dummy ad for a property and see what kind of response you get. Just because you have demand does not mean you will have a good quality applicants.
My best tenants have came when I had little demand/activity with a rental ad. Your advertisement, yard signage, presentation of property and your tone is a puzzle piece working together smoking out the losers and filtering the best applicant down into you property.
Frank
Call a local property management company. They will know better than anybody.