How to tell if properties in your areas are renting?

Question

I've been checking online into a specific zip code and when looking up rental houses in this zip code I find that a lot of them say: "200 days ago" "65 days ago" "52 days ago" "263 days ago" etc. Does this mean these properties are just sitting there with no tenants for that long? And does that then mean that buy and hold in this zip code just wouldn't work because the properties here don't rent well? I'd appreciate any feedback, thanks in advance.

This is my first post so if this is a silly question forgive me. (Or if there's already a post or blog about this feel free to link it and call me lazy for not finding it myself.)

This is my first post so if this is a silly question forgive me. (Or if there's already a post or blog about this feel free to link it and call me lazy for not finding it myself.)

Clayton P. · Answer

Eli, if the resources @Brie Schmidt mentioned aren't available to you - which would be the most efficient route - if you had a target KIND of property in mind ie duplex apartment, 3 bedroom SFR, etc, you'd be going for, then you would pick that zip code, and post a craigslist ad saying you had that kind of property available for rent, just a couple sentences describing it, and see how many bites you get. If you get an onslaught of emails (or not a one) that's a pretty good gauge.

This isn't the most honest route to go but you better believe if I was on the fence about actually making a purchase, I'll exhaust an answer to every last question in my mind if it's the right choice or not, before I make the move. It's not monopoly money you're dealing with.

This isn't the most honest route to go but you better believe if I was on the fence about actually making a purchase, I'll exhaust an answer to every last question in my mind if it's the right choice or not, before I make the move. It's not monopoly money you're dealing with.

Chan K. · Answer

@Eli Tafesse

First determine if you are going to be a condo, single, multifamily, .... etc buy-hold investor. Once, you determined your niche, then focus on it. Find a local agent in your market, and ask him to add you to his daily listing for that niche/criteria in that market.

In the daily listing, it usually shows the rent rate for each unit for multifamily (I guess you might be able to apply the same principal to other niches). Stay on for 2-3 months to gather the rent rate data, in which can be used to compile statistic for rent rate.

The situation above will give you a few information: market rent rate, vacancy, and rent-ability. If most listings have vacant unit, then walk away from that market (it is just me).

To confirm how long the vacant unit is on the market or is there any demand.

Go to Craiglist or other ad sites, create a database (excel): let say you go on site on Mon

- Grab all available units on rent that were listed in the past 1-week

- Record all of them to your spreadsheet: price, address, # bedroom, phone #, ....

- Then on Friday or next Monday. Compare your recorded spreadsheet with the current state listing on Craiglist. I would presume a few of them are taken from your spreadsheet. Call each remaining rental listing to ask if the unit is still available

- After you called the landlord or Lister, If you think the rent rate is reasonable and most rental listing sits there for 3-4 weeks or more, you better off staying away from that market as buy-hold landlord. This meant the rental demand is not there and you won't strive in that market as landlord.

Jeff B. · Answer

Your looking for the Vacancy Factor.  On a for sale, it's days-on-market and much easier to discover.

Working Las Vegas for SRFs, when driving about I saw banners like:

• move in for $1
• first month's rent free

Those concessions disclose a vacancy problem, at least in that neighborhood and more generally, in that city.  I abandoned the search.

Brie Schmidt · Answer

@Eli Tafesse  - depending on the site, it could mean that they never pulled the ad down after they rented it.  Or if they reposted an ad 9 months later it sometimes shows it as the original post date.

The best way to find out if an area is good is to attend your local REIA events and ask investors who already have properties around there.

Eli Tafesse · Answer

Thank you all so much! Sorry that I took so long to respond. @Chan K. I'm definitely going to do that, and great information from Brie and Clayton. Never thought of that. Brie there's a lot of events on Meetup for REI in my area but I think I need a Facebook to sign up or something. How do you find those events in your area?

Ross Greene · Answer

I agree with Robert Adams.. I am not sure where their are vacant rentals for 200+ days. In some of the most popular areas would be lucky if they were up for 2-3 weeks for rent.  Rentals move very quick from what I am seeing.

Robert Adams · Answer

The Las Vegas rental market is very strong right now

How to tell if properties in your areas are renting?

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