Amount of rentals

[Kieran Dowling]

How do you know if there are too many rentals in your area?

[Phillip Dwyer]

@Kieran Dowling. Here's a list of metrics to use as a gauge:

1.  Days on market trends. Is it taking longer to rent out houses now than previously?

2.  Absorbtion rates.  How many active listings versus how many rented last month.  This will tell you how many months of supply there is in the market currently.

3.  Prices.  Are they going up or down?

Some markets have seasonality to factor into the indicators above.