New Haven Rental Property Market

[David T.]

Hi all,

I am looking to purchase a 2-4 family rental unit in the New Haven area; something close to Yale. I was wondering what the area is like. I have read articles stating New Haven's historically low vacancy rate. How does one interpret the concomitant articles of high crime and poverty. The rents appear to be relatively high compared to the low real estate prices. How is it renting to college students? Do they usually rent for 9 months of the year? Section 8. Are there other factors to consider in this area? High taxes, poor municipality services, crime, ext? Any information on this area would be helpful.

Thanks

[Kevin B.]

Hi!  I've owned property in New Haven for 15 years, and what @Zachary Mowery states is spot on.  

I've rented to Yale grad students and faculty, and now almost exclusively market to those affiliated with Yale.  It's a great market.

However, New Haven neighborhoods are tricky.  You definitely want to be familiar with them, or have someone with first-hand knowledge.  Homes valued at close to $1,000,000 are (right) around the corner from houses worth less than $100 - 150 K.  It's very tricky, like no where else I've seen.  

You'll have significantly more luck if your property is in the East Rock or Westville sections, but again - even in these sections, there are exceptions to the rule.  One of my properties borders Westville.  I've found I need to mention "close to Westville" or "borders Westville" in order to get people to take a look.  Once they come, they see an amazing house in a great area, but because they're told to only look for East Rock and Westville, they limit their searches...(Remember - most people coming to live here are coming for school, and might not have spent much time here at all. they're often relying on the advice of someone in the business office in the school or department they'll be attending.)

My final bit of advice relates to the housing window Zachary mentioned above.  He is absolutely right!  I found out about this the hard way!  Long story, but I missed the window this year, and had to wait 3 months before finding a tenant (at $400 less/month!)  In this case, I have made this lease end in May, so I will be "back on cycle" for June or July move-ins which are desired due to the academic cycle at Yale.  If you're not rented by June or July, you'll likely be scrambling in August, Sept, Oct, unfortunately.

Good luck with your investment!  Let us know if you have additional questions.  If not, let us know how it turns out!  ~Kevin