West Orange, NJ · Member since 2015 · 12 posts · 5 votes
Hi everyone. I am a complete noobie. We are considering moving out of our house but keeping it as a rental. So I am wondering how I can determine the rental demand in my area for my specific type of home. I guess what would make me comfortable is seeing some numbers regarding recent rentals - volume, time on market and rental prices
Thanks
Have a Realtor pull comps on properties rented in your neighborhood grid in the last 24-months with the same bed/bath configuration as your house. Make sure they include the DOM (days on market) for all properties. Look at the DOM for properties in similar condition to yours. That will give you a good basic understanding of both demand and relative pricing in your area.
Have a Realtor pull comps on properties rented in your neighborhood grid in the last 24-months with the same bed/bath configuration as your house. Make sure they include the DOM (days on market) for all properties. Look at the DOM for properties in similar condition to yours. That will give you a good basic understanding of both demand and relative pricing in your area.
Thanks for the input. I have tried rent range. It gave high med low and the range was large. So it seemed to be a guessing game in terms of which to pick. And yes, asking a realtor is on my to do list. Guess I was looking for something that I could do on my own quickly. Thanks again for taking the time to answer
You can also obtain rent levels by the MSA by HUD through your local housing authority, you didn't state the estimated value of the property. You can also look to the CAP rate method to estimate where rents should be. The demand in that rent range is harder to find as that goes to the demographics of the area. The time on the market is also a demographic question, a luxury home will usually take longer than a lower priced home, obviously, you're catering to a smaller target market.
It will be simpler to ask Realtors, property managers and other investors. They will tell you what range they would rent it for if they were to manage it. Then, if you are going to manage it, drop the rents slightly as they have a better marketing pool, generally than will an individual. You marketing time may also be a little longer as some PMs have waiting applicants. Good luck :)