Updated over 11 years ago on . Most recent reply
How to gauge demand for renters
How can I determine the demand for homes to rent in a area. I am concerned with the question, if I fix it up, will I be able to rent it?
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#3 Guru, Book, & Course Reviews Contributor
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Look at comparable inventory, if inventory is high, demand is low, I inventory is low, demand is high. Look at the average income for the area, tenants can get in at 33 to 40% of gross income, what would be the mean price range? Does the inventory support that population? Then work to bot sides of the mean, keep in mind the population at different income levels and compare inventory accordingly.
Or, you can call property managers and ask how long it would take them to fill your unit.
Or, if it's at the lower end of the spectrum, call the housing authority or section 8 office and ask them how the demand is moving.
And, look at the MLS, you can see hotter areas and price ranges, properties that are selling are usually easier to rent too. Good luck :)