Rental Market Over Saturated?

Question

Curious if anyone has any advice for finding tenants in a market that seems over saturated with houses that are up for rent. What I mean specifically is: I can go on Zillow and search the city I would like to purchase an investment property in and see that there are well over 150 houses available to rent. How does anyone compete or even get started in a market like that?

Chris Davidson · Answer

@Vlad B. it can make sense to add a W/D but check the market first sometimes other things could be more important. Check what the market is providing and see where you can add value.

Cheers!

Jessie Nunley · Answer

Thank you for the responses @James Wise and @Nathan Brooks.

James Wise · Answer

Simple; outmaneuver your competition.

You can do this a few ways.

1. Undercut them. You can provide a comparable product for less money than everyone else.

2. Market smarter and harder than them. If they have 1 advertisement you should have 10. If they are doing photos, you should be doing videos.

3. Provide a better product than them. If all the other homes have Formica counter tops your should be Quartz or Granite.

Nathan Brooks · Answer

@Jessie Nunley I don't believe this is the metric you are looking for ... there are lots of available rentals but the demand is very high, at least in our market.  So I think the range to look at is available inventory to buy, and more criteria for the property you want to own/invest in.  Make sure the investment fits your criteria, and go for it!

Jessie Nunley · Answer

Would you gentlemen care to give me your input on this question please?

@James Wise

@Nathan Brooks

Jessie Nunley · Answer

Thanks for the response @Cameron Paterson

Cameron Paterson · Answer

It sounds like you don't have a property yet that you're trying to rent out.  If you're just looking to invest, are there any sub markets that seem to do better?  I definitely would stay away from areas with high supply and low demand.  Also - how are multifamilies comparing to single families?