Factors that affect vacancy/rental market

[Mehran K.]

Hi everyone, Newbie here

What are some of the general factors that affect rental markets in certain cities? I'm guessing:

1. Unemployment rates
2. Local Businesses
3. Local foreclosure rates?
4. How many other rentals are nearby? (supply and demand)

Anything I'm missing?

Thanks!

[Account Closed]

Besides supply and demand. Price plays a big factor. If you rent cheap enough you might not have any vacancies. If you rent at above market rent your vacancy will likely be higher than neighboring properties.

Price though is not the only factor by any means affecting the desirability of a property. How the property is managed will play a big part. Property management is more than collecting rents and making necessary repairs. It also is about keeping a property looking clean. Are the rules enforced fairly and equally. Are repairs made timely, etc.

There are factors that also affect the size of the rental pool. One factor would be the quality of schools in the area. The type of community will play a factor as well, is it urban or suburban. The demographics of the area will affect your rental pool as well. Area amenities such as parks, lakes and other recreation may affect the size of the rental pool.

So, there are factors that you can address on a property level that will change vacancy and factors in the neighborhood that will affect vacancy. Competition is always a part of the equation as well just not the only consideration.