Where do you find the vacancy rate for your area? (I'm in the Phx, Az area if your wondering)
Check out a site called arizona indacators. You can Google it. Also check the census beaureau. Either of these will give you an indication of vacancy rate in your area. But I will ask
1. Vacancy for what? Single family? Units? Commercial? Mobile homes?
Give us some more information so that we can be of better help to you
The best way to see vacancy is driving around seeing what is on the market, price and quality. I track around 1-2% vacancy rate. I have friends that track at 10%. If your dealing with smaller units... the quality and price will be the because factor. Some vacancy is caused from landlords that have there head up there you know what.
Depending on your scenario you will possibly have zero vacancy if you run a tight ship and treat people with respect.
On the flip side zero vacancy could mean your rents are too low...
Thanks Frank and Gerald for the tips. I'll check out Arizona Indicators Gerald. Gerald I was looking to get vacancy rates for apartment units in my area
You know that it is funny how a lot of this information is obtained. I don't have much faith in the posted data.
The organizations that track this usually call around to the managers of the different properties and ask how many units are vacant. Many of the managers take great pride in their property and their skills. So the inflate their occupancy numbers. I have witnessed this first hand on a couple of occasions.
So my answer is that you use a number that is a little higher than the posted one.
You can call the multi-family brokers to get the numbers. They usually subscribe to the publications that cover your area.
You can call up local commercial brokers in your area to obtain multi-family Vacancy rates. They get them from a lot of different sources like Steve O said.
Do you know the number of units in the property you're interested in?
I always find my own small apartments rent much faster than large complexes with many units.
Erik: For apartments I usually rely on the IREM quarterly survey for apartments. You should be able to get the report from any commercial broker or reputable property management company. The IREM gives a lot of useful info in those surveys.
could I subscribe to the same publications you talked about in the end of your post?
Yes, but that data will cost you money. Some of the large brokerages post this data on their websites or send it out in emails. Find out who these companies are in your area and look up their websites. If you can't find the data that way, give them a call and ask.
okay @Steve Olafson, thanks for the advice, much appreciated
Honestly I check zillow. I watch how long properties have been on the market. In the beginning I even called some of the different management firms.
Also important is the average tenancy duration and average vacancy duration. Vacancies can be your biggest expense with most rentals. How often and how long vacancies occur specifically will determain a good portion of your net operating income. Some properties could be 8 months and some could be 18 months. The difference to your bottom line and peace of mind is 3 fold.
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